Briefs: AHP one step closer to becoming private
BRENTWOOD, Tenn. - AmericanHome Patient (AHP) announced in September that 6.9 million shares of the company have been tendered for 67 cents per share pursuant to the self-tender offer made July 7. AHP has accepted the shares for payment. The shares, when added to the shares owned by Highland Capital Management and its affiliates, represent 87% of the outstanding shares of the company. AHP has also completed restructuring its senior debt into two, four-year secured term loans. "The successful completion of the offer and the debt restructuring are each steps in a series of transactions that are expected to result in the company becoming 100% owned by Highland," AHP stated in a release.
HME companies make Inc. list
More than a dozen HME providers and manufacturers were named to Inc. Magazine's list of 5,000 fastest growing private companies in August. A sample of the companies featured: Extrakare in Norcross, Ga., at 1,564; Cape Medical Supply in Sandwich, Mass., at 4,179; Comfort Medical Supply in Ormond Beach, Fla., at 461; and Neighborhood Diabetes in Woburn, Mass., at 1,139. "In the face of significant reimbursement reductions, Extrakare generated strong internal growth in patient census and total revenue in 2009," stated Scott Lloyd, co-founder and president of Extrakare in a release. To view the list, go to www.inc.com/inc5000/2010/index.html.
DME provider charged in $87M fraud scheme
NEWARK, N.J. - The founder and president of Allied Health Care Services, an Orange, N.J.-based DME provider, was arrested in September for fraudulently obtaining more than $87 million from banks based on phony lease agreements. According to the U.S. Attorney's Office, Charles Schwartz, 56, of Sparta, N.J., obtained the money by telling banks that it would be used to lease valuable medical equipment, but in reality, he never leased the equipment. Schwartz used the money to, among other things, repay earlier bank loans that were part of the scheme. Schwartz faces a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
Health System Services has been re-accredited by ACHC, the company announced in August. The Wheatfield, N.Y.-based provider offers a full line of HME.