Friday, February 15, 2013

Home Health, the next big buyout?

Cardinal to buy medical supplier AssuraMed for $2.07 Billion

The acquisition will give Cardinal access to a new segment of the healthcare market that it believes will grow with the implementation of the Affordable Care Act, which is more commonly known as Obamacare.

AssuraMed will give Cardinal access to the growing number of Americans who are treated in home settings. The company expects this trend to accelerate under the ACA, Chief Executive Officer George Barrett said in a telephone interview.

An aging population, more prevalent chronic diseases, and the need to keep treatment costs down are factors that will necessitate more home care in years to come, he said.

"We see this as the natural direction of care that's moving toward the home," Barrett said.

AssuraMed, with sales of about $1 billion in 2012, serves more than 1 million patients nationally with more than 30,000 products. It helps patients manage insulin infusion, diabetes testing, incontinence, tube feeding and wound care, and provides a host of other healthcare services.

AssuraMed operates through two separate businesses, Independence Medical and Edgepark Medical Supplies.

The market for direct-to-home medical supplies is currently fragmented, and Cardinal is betting it can capitalize on it with this acquisition and its expertise in supply chain, logistics and technology.

Cardinal operates two business segments. The pharmaceutical unit, which generates the bulk of its revenue, delivers drugs to retail pharmacies, hospitals, mail-order facilities, surgery centers, physician offices and other healthcare facilities.

The slower-growing medical unit supplies medical-surgical products, as well as replenishable items such as gowns, gloves and surgical drapes, to hospitals.

"The fact that Cardinal has undertaken a transaction of this size is evidence of increased confidence in (the company's) Medical turnaround and improves prospects for the business going forward, which should relieve some of the Street's fears related to the Medical business," Ross Muken, senior managing director and partner at ISI Group, wrote in a research note.
Are you poised to take advantage of this growth? - As larger companies buy out the smaller distributors there is usually a decent percentage of business that will fall off as the new company enforces it's business policies and changes the model. 
The good news is that the MDS system will give you the tools to take advantage of this industry movement and build your own business..!!! 
Focus on Medical Industry Segments and Selling
How MDS helps you to service that business 
 Here are just a few of the tools that will help you  focus and grow the the LTC/Home Health Segment 
Recurring orders
Patient Identification
Third Party Billing Detailed Invoice level export
Consolidated Billing
Monthly Billing
Master A/R
Pricing by Facility/Contracts
Contract Management
ScanConnect Barcode inventory Management System 
HCHB (Home Care Home Base) Interface
Custom Labels
Custom Invoices
Usage Reports

For more information on TSH or MDS call The Systems House, Inc. at 1-800- MDS-5556. Or send a message to
Click here and tell us how we can help you with your business solutions.