Allied Medical evolves

Monday, May 25, 2009

WICHITA, Kan. – Allied Medical Supply, an HME retailer, has retooled its business model, expanding its reach to products like syringes and EKG machines, and to payers like physician offices and long-term care facilities.

“With the downturn in the economy, we wanted to be able to reach more people,” said David Ray, owner. “We’re looking to become more of a nationwide distributor.”

To support its new business model, Allied Medical has teamed up with National Distribution & Contracting, a Nashville, Tenn.-based member service organization/distributor, giving it access to more than 90,000 products from more than 300 manufacturers of medical equipment and supplies.

Additionally, Allied Medical has added 1,200 square feet of warehouse space and plans to redesign its Web site,

Despite its new focus on distribution, Allied Medical remains open to the public.

“Nothing changes there—other than that our walk-in customers now have many more products to choose from,” Ray said. “We’re keeping shipping in the back and a showroom in the front.”

When Ray started Allied Medical about a year and a half ago, he stayed away from Medicare on purpose.

“I wanted to take the business in a different direction,” said Ray, who has been a silent partner in several traditional HME companies. “I’m glad I did.”

Provider Alan Grogan knows the feeling. His company, Lexington, Ky.-based Grogan’s Healthcare Supply, has been distributing medical equipment and supplies since 1960.

“When Medicare came onto the scene and it began to explode, we chose pieces of that business to get into,” Grogan said. “But we’ve remained focused on distribution. It’s more predictable.”