Judge approves AHP’s reorganization
NASHVILLE, Tenn. —Â A Nashville bankruptcy judge approved a reorganization plan submitted by American HomePatient and a committee of unsecured creditors, clearing the way for implementing the plan, according to the Nashville Tennessean. Judge George C. Paine II entered the opinion last month after considering it for several weeks. AHP filed for Chapter 11 bankruptcy July 31, 2002. The company was scheduled to pay off the entire $275 million Dec. 31, 2002, but AHP had nowhere near that much cash on hand. Filing for Chapter 11 protection allowed AHP to continue its day-to-day operations and renegotiate more favorable terms for its debt. The better terms will free up more cash to fuel the company’s growth and pay down the debt’s principal, say company officials.
MediChair has nothing to CARP about
CALGARY, Canada — MediChair, North America’s largest HME franchise operation, has formed a marketing partnership with CARP — Canada’s version of the AARP. Under terms of the marketing arrangement, MediChair’s 58 franchise stores will become sign-up locations for new CARP members. With the purchase of $250 of HME product, MediChair will provide customers with a complimentary one-year membership to CARP and a one-year subscription to its 50Plus magazine. In return, MediChair will become CARP’s recommended HME provider. CARP numbers 400,000 members across Canada.
Lincare picks up big Midwest HME
CINCINNATI, Ohio — Lincare has acquired Mid-State Medical, a 17-location HME with annual sales estimated to be roughly $10 million. Mid-State provides home respiratory therapy and medical supplies throughout Alabama, Mississippi, Ohio, Tennessee, Virginia and surrounding states. Mid-State was a division of Deaconess Home Health Management. The deal also includes the respiratory medication services business and related assets of Infusion Partners, a division of Deaconess Home Health. Terms of the deal, which closed in January, were not released.