AmMed Direct lays off staffers

Thursday, March 25, 2010

NASHVILLE - Mail order diabetes provider AmMed Direct in February reduced its workforce by 17%.

Also out: COO Tom Milam.

The company laid off about 80 employees, it was reported in the Feb. 13 Tennessean.

In a statement, the company cited marketplace difficulties, including a 9.5% cut to Medicare reimbursement last year, and national competitive bidding as the primary drivers behind the layoff.

"Successful companies must periodically step back and evaluate all aspects of their business to be best positioned for the future and also effectively survive tough times," stated the release. "As a result, we had to make some tough decisions about our company's future, including a decision to reduce our workforce."

It's an abrupt change in direction for the company. Last year, Milam told the Nashville Business Journal he expected AmMed in 2009 to earn $180 million in revenues; to expand to a second Nashville facility; and to increase staff by the end of last year.

Milam, who serves on Medicare's Program Advisory and Oversight Committee (PAOC), told HME News he has no plans to abandon the industry.

"I still care very much about the industry and I am going to do all I can to help HME providers--not just diabetes providers--with the competitive bidding program," he said.