ATG Rehab makes two buys
ROCKY HILL, Conn. - ATG Rehab last week made its first big move since announcing earlier this year that it had a new majority investor, Audax Private Equity.
ATG has acquired the complex rehab divisions of Vanguard Home Medical Equipment in Rhode Island, a subsidiary of Landauer Metropolitan, and Peak Wheelchairs in Colorado. ATG has been eyeing Rhode Island for some time, says Cody Verrett, vice president of sales and marketing.
"We've wanted to have a location in Rhode Island and, with their existing team of complex rehab staff, this was a great opportunity for us," he said.
For 15 years, Vanguard, led by John Thorpe, an ATP, has provided complex rehab to more than 20 hospitals and rehab facilities in Rhode Island. ATG now serves more than 2,000 referral sources and more than 35,000 clients in Connecticut, Massachusetts, New York and Rhode Island, according to an ATG release.
The acquisition of Peak Wheelchairs brings two more ATPs to ATG's roster: Rich Salm and Rob Scott. They will work out of ATG's existing Lakewood, Colo., office. From that office and another office in Colorado Springs, ATG now serves more than 100 hospitals and 5,000 clients in the state, according to the release.
"That acquisition was more about staff and expertise," Verrett said.
Going forward, ATG, which has 27 locations in 19 states, will continue to seek acquisitions that strengthen its regional footprints across the country, Verrett said.
"What I think we are is a regionally strong company and when there are opportunities for us to expand out in those set regions, we're going to do it," he said. "That's what's been interesting and successful about our model."
Landauer closes the book on complex rehab
By Liz Beaulieu Editor
WARWICK, R.I. - For the most part, Landauer Metropolitan has no more skin in the complex rehab game.
"We still do some complex rehab for our managed care contracts, but that's pretty much it," said Lou Rocco, CEO of Landauer Metropolitan. "So now we can concentrate on our core business and what makes money for us. (Complex rehab) was time-consuming and the margins were low."
Rocco estimates Landauer did about $1.5 million in complex rehab business through Vanguard. Landauer acquired Vanguard in 2009 from Air Products.
Landauer and ATG aren't exactly strangers. In New York, the two providers have an informal relationship whereby Landauer sends complex rehab referrals to ATG and ATG sends respiratory referrals to Landauer, Rocco said.
"So we're saying to referral sources, 'You can have the best of both worlds,'" he said. "Since that worked out so well in New York, we took it a step further."
Because of the history between the two companies, Landauer feels good about putting its complex rehab patients in ATG's hands, Rocco said.
"They do a great job, so there's no egg on our face," he said. "Whenever you do something like this and they don't do a good job, you suffer. So you have to make sure that the service level is gold standard, and that's the case here."