Acquisition
By HME News Staff
Updated Tue December 31, 2002
O2 Science expands into Northwest United States
TEMPE, Ariz. - HME roll-up O2 Science added its 15th location last month when it acquired Respicare, a $1.5 million home respiratory provider in Seattle.
Until now, O2 Science confined its acquisition activities to the Southwest and Central United States. But Respicare “just happened” to be a 100% respiratory company, which is pretty rare these days, said O2 Science President Mark Hanley.
Additionally, because O2 Science focuses on Medicare oxygen patients rather than managed care business, it's less important that the company's branches provide continuous geographic coverage, Hanley said.
Medicare comprises 90% of Respicare's business.
O2 Science arrived on the scene in 1999 with $25 million in working capital and a five-year roll-up plan to build a home respiratory company with 25 locations. Hanley's still aiming for the 25-location target, but that could change.
“I'm getting pressure from our team because they think we can go on,” he said.
O2 Science's additional 14 locations are located in Grand Island and Omaha, Neb.; Arvada, Colo.; Tempe, Bullhead City, Tucson, Lake Havasu City, Flagstaff and Kingman, Ariz.; San Diego and Long Beach, Calif.; Las Vegas and Elko, Nev.; and Lenexa, Kan. HME
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