Companies in the News
Companies in the News
American Capital purchases subordinated debt
American Capital Strategies
(Bethesda, MD) has purchased $12.1 million of subordinated debt issued by Auxi Health the group organized by Monterey Capital to acquire eight home healthcare businesses in eight states in the Midwest and Southeast. The acquisitions will make Auxi Health a dominant home healthcare provider in many of its markets, the company said. Additional financing was provided by Fleet Capital (Boston).Caretenders is moved to Small Cap
Caretenders
(Louisville, KY) said last week that its common shares have moved from the Nasdaq National Market System to Nasdaq’s Small Cap Market, effective March 11. The shares will continue to trade under the stock symbol CTND. The move, Caretenders officials said, reflects management’s decision to transfer following notification by Nasdaq that it did not meet listing requirements regarding the market value of public float.Dynacare sees FY98 gains from home health sale
Dynacare
(Toronto) reported an increase in revenue during FY98 ended Dec. 31. Revenues were $333 million, compared to $260.3 million in FY97. Net income was $9.2 million, compared to the previous year’s net loss of $81.6 million. The net loss in 1997 includes impairment and restructuring charges of $95.1 million, as well as a gain on sale of home health care operations of $1.1 million.Health Care Solutions buys Foley Medical
Health Care Solutions
(Ann Arbor, MI), a home respiratory therapy, medical equipment, and infusion company, acquired Foley Medical (Youngstown, OH), doing business as Family Home Medical. Officials said the decision to sell the home care and home care equipment company "was based on several factors, all of which were to benefit the clients of the Mahoning Valley." By becoming part of Health Care Solutions, officials said, Family Home Medical will have the ability to become a preferred provider with more medical insurance companies. "This means we will now be able to service more families in need of home healthcare equipment and supplies," Family Home Medical officials said.Mid-South hearing delayed
A federal court hearing concerning back pay for employees of a Health Staffing Services (HSS; Fort Lauderdale, FL) subsidiary is delayed until March 30. A temporary restraining order which prohibits the company from moving documents out of its Memphis office will remain in place. The Department of Labor (Washington) is trying to gain back pay in the amount of $750,000 for 600 workers of Mid-South Home Health (Memphis, TN) who worked four weeks without pay when the company shut down unexpectedly on Feb. 17. Its financier had pulled funding from daily operations. The labor department gained the restraining order claiming the documents including clinical reports, time sheets and invoices were illegally produced goods because workers who generated them were not paid, reported The Commercial Appeal in Memphis.
Healthdyne division gets new name
Healthdyne Technology
’s (Marietta, GA) Health dyne Information Enterprises division has changed its name to HIE, the acronym by which the company is best known. The company intends for the name change to reflect the totality of its business, which has broadened from services in the healthcare EAI market to EAI solutions to additional markets, including financial services and banking industries, said President/CEO Robert Murrie. The name change is effective now.Integra Group receives network accreditation
Integra Group
(Mason, OH) has received a two-year network accreditation from the American Accreditation HealthCare Commission/URAC (Washington). Among 17 categories of service in the company’s network are durable medical equipment, home healthcare services, home infusion, and skilled nursing. The non-profit commission was founded in 1990 to establish accreditation standards for managed healthcare organizations.Invacare signs lease for new office space
Invacare
(Elyria, OH) has signed a five-year lease for 150,754 square feet of space at Golden Springs Business Park in Santa Fe Springs, CA. The lease will cost the company $4 million.MiniMed stock recommended
BC Ziegler
(West Bend, WI) has conducted a research report on MiniMed (Sylmar, CA), which tells investors to buy the company’s stock. "We continue to feel confident in the growth prospects for the industry and the company," the report said. "We have increased our 1999 EPS estimate by one cent, to $1.37."Respironics launches new product
Respironics
(Pittsburgh) will distribute a noninvasive bilirubin analyzer, called BiliChek, recently approved by the Food and Drug Administration (Washington). The BiliChek was produced by SpectRX (Norcross, GA), and it uses light beams and other forms of energy to diagnose infant jaundice. Respironics expects to launch the product in the U.S. within 30 days using its home care and infant management sales force. The product is currently available in 45 other countries.Sparta Surgical buys HME provider
Sparta Surgical Corp
. (Pleasanton, CA) signed a letter of intent to buy a private home healthcare equipment company for $17 million in cash, $4 million in a note payable, and 3.4 million common shares. Sparta said it will issue additional common shares if the Stockton, CA, company meets certain sales. The private company had FY98 sales of about $34 million. It has grown 40% annually since 1996 and it serves more than 44,000 home care patients, said Sparta President/CEO Thomas Reiner.Subscribe Now for Access
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