Financials
Pediatric Services of America Announces 2002 Results: For the fourth quarter ended Sept. 30, 2002, Norcross, Ga.-based Pediatric Services of America reported a net income of $8.85 million, or $1.29 per share, compared to a net income of $1.29 million, or 19 cents per share, for the same quarter a year ago. Fourth quarter revenue rose 10 percent, to $51.03 million, compared to $46.56 million during fourth quarter 2001.
PSAI's 2002 net income of $14.06 million nearly tripled, compared to the company's 2001 net income of $5.49 million. Revenue for the year increased 7 percent, to $197.46 million, compared to revenue of $184.09 million in 2001.
Med Diversified Files for Bankruptcy Protection: Andover, Mass.-based Med Diversified has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, the company announced Nov. 27.
Prompted by the collapse of Med Diversified's primary financing source, National Century Financial Enterprises, the filing also seeks protection for Med Diversified's subsidiary, Chartwell Diversified.
“We intend to argue passionately the merits of our complaint against those parties we believe are responsible for the financial crises of dozens of health care providers,” said Angeline Cook, director of investor relations for Med Diversified. “However, we anticipate bankruptcy protection will allow us to restructure our finances and focus on the operations of our two primary subsidiaries, Chartwell Diversified Services and Tender Loving Care Health Care Services.
Mergers & Acquisitions
WHI Acquires New Mexico HME Company: Building on its billion-dollar home care business, Deerfield, Ill.-based Walgreens Health Initiatives last month acquired the assets of Los Alamos Medical Center Home Medical Equipment, a hospital-based respiratory and HME company based in Los Alamos, N.M.
The acquisition expands WHI's regional presence in the Southwest and kicks off the company's aggressive acquisition plans, according to Ron Allen, vice president of WHI's home care services division. The company did not disclose the terms of the acquisition.
Fraud & Abuse
HME Owner Charged with Defrauding Medicaid: Guadalupe Cherta, owner of a home medical equipment company in Tarpon Springs, Fla., hid cash assets of more than $800,000, to receive Medicaid benefits for her son, Florida Attorney General Richard Doran charged.
Between 1999 and 2002, Cherta's son, who has cerebral palsy, received more than $47,000 in free medical services and equipment through state Medicaid, Doran alleged. Cherta also failed to disclose that she was a medical equipment provider whose company, Med-A-Bility, received more than $500,000 in Medicaid payments from May 2001 to May 2002, Doran added.
If convicted, Cherta could receive a $5,000 fine and up to five years in prison.
Noteworthy
Puritan Medical Opens Oklahoma City Facility: Radnor, Pa.-based Puritan Medical Products, a subsidiary of Airgas, has opened its 33rd medical gas cylinder filling facility in Oklahoma City, the company announced Dec. 4. The new facility will allow Puritan to fill oxygen and liquid nitrogen containers for more than 350 hospitals and home health care customers within a 50-mile radius of Oklahoma City.
Noteworthy:
United Seating & Mobility Opens Missouri Rehab Office: To serve a 15-county region in northeastern Missouri, Florissant, Mo.-based United Seating & Mobility in September opened an office in Kirksville, Mo. “We recognize the unique needs of people with disabilities in this rural area,” said Chip Holt, a seating and mobility specialists who, along with Mike Jackson, will run the office's day-to-day operations.
For breaking news, go to www.homecaremonday.com, the electronic news service of the home medical equipment industry.
