Allcare breaks into Pennsylvania

Sunday, April 30, 2006

SAYREVILLE, N.J. - New Jersey-based Allcare Medical acquired Independence Medical in Easterville, Pa., in mid-February, better positioning itself to build on its base of 50 or so managed care contracts.
Allcare has always serviced southeastern Pennsylvania through its Marlton, N.J., location, but now it can service parts of the state 45 minutes north and west of Philadelphia.
"The acquisition allows us to obtain managed care contracts that we were not able to obtain (without) a location in the state," said Rich Lerner, president. "Also, there are certain hospitals and sub-acute facilities that would not refer business to us because we did not have a Pennsylvania address."
Lerner declined to discuss the details of the acquisition.
Although Medicare and Medicaid make up about 35% of Allcare's payer mix, managed care contracts have long been its bread and butter, Lerner said.
"I think anything is better than Medicare," he said. "With Medicare, there is so much headache, between the audits and the clinical documentation that's required."
Requirements differ from contract to contract, but with at least one managed care provider, Allcare enjoys a billing process without prior authorizations for 90% of products and receives payment within two to four weeks.
With Independence Medical, Allcare now has four offices. Its office in Sayreville, N.J., serves as its corporate headquarters with 125 employees centralizing intake, billing and collections. Its Marlton, N.J., location serves as a distribution hub, and an office in Union, N.J., serves as a retail location.
Respiratory and rehab products make up more than half of Allcare's business mix, Lerner said.