California’s biz climate drives away O2 Science
PHOENIX, Ariz. - HME roll-up O2 Science sold its two California branches to Apria in June to escape California’s difficult managed care environment, burdensome regulatory oversight and overall higher expenses, said President Mark Hanley. “In California it felt like you had to get about 25 more licenses to do business,” Hanley said. “The margins on managed care were low, and it was tough to get paid. Our California branches probably had the highest amount of outstanding AR in the company.” In selling the San Diego and Long Beach branches, Hanley said, he didn’t want to give the impression that “we aren’t continuing our growth. We’re just moving our resources around a little bit.” Hanley declined to reveal what Apria paid for the branches, but said O2 Science will apply the money toward additional acquisitions.
Apria completes Normal acquisition
NORMAL, Ill. - Apria has acquired BroMenn Medical Supply and Infusion. Apria will consolidate its Bloomington-Normal area operations at the BroMenn location at 1322-B S. Main St., Normal. That process was expected to be completed by the end of June, according to a local news report. All 10 BroMenn employees - including respiratory therapists, service representatives who deliver and set up equipment, office service employees and purchasing and billing representatives - have been retained by Apria. Terms of the deal were not disclosed.
Apria moves to strengthen board
LAKE FOREST, Calf. - Apria, which already has one of the most respected boards of directors in corporate America, made a move in June to make it even better. The HME giant’s new policy will allow stockholders owning at least 5% of its common stock - currently just one investor - to submit challengers for seats on the board. The move is intended to boost shareholders’ direct involvement in selecting board members at a time when investors are demanding better corporate governance, reported the Orange County Register.