Arioli resolves dispute and is â€˜ready to roll’
ST. CLAIR, Mich. - Ed Arioli has settled a legal dispute with one of his company’s directors that clears the way for him to move forward with his HME roll-up plan.
“Ed and Specialized are ready to roll again,” Arioli’s attorney, Chris Nelson, told HME News recently.
In August, Arioli and former director Carlia Cichon agreed to divide the company’s patient base. Cichon took over care of the ventilator patients and Arioli kept the oxygen and DME patients, which represent about 90% of the company’s business. Arioli also retained the company’s name, Specialized Home Medical Services.
In early summer, Cichon left Specialized and took with her both the ventilator and oxygen patients from its lone branch in St. Clair. Cichon said she left Specialized because she felt Arioli was not being up front with her about the company’s finances and how much investor capital he had raised. A legal dispute over the company’s patients and equipment ensued.
“All I know is that we are doing what we are really good at and what we want to do,” Cichon said, following the settlement. “I’m happy.”
Arioli made a name for himself as a co-owner of Mid State Medical, a very strong Michigan HME that Foster Medical acquired in 1982. While at Foster, Arioli headed the company’s development and acquisitions division and helped grow the HME’s revenue from $60 million to $300 million.
His new roll-up plan calls for raising money from investors and acquiring companies by paying a combination of cash and stock.