Chicago independent grows to $30 million
December 22, 2003
CHICAGO - Ultra Care Home Medical, the city’s largest independent provider, acquired the HME, infusion and home respiratory services of CareMed of Chicago, the University of Chicago Hospital’s homecare business.
The November deal, precipitated by U of C’s decision to focus on its core activities (patient care, teaching and research) boosted Ultra Care’s annual revenue by 45%, or $9 million, to about $30 million, said CEO Bruce Callahan.
The acquisition strengthens Ultra Care’s hand by providing more quality business in its core business areas of home infusion and respiratory therapy. It allows the company to become a bigger volume purchaser and negotiate better prices with vendors. The deal also makes the company an attractive acquisition target for someone desiring to establish a platform in the Midwest, Callahan said.
The CareMed acquisition comes with another benefit for Ultra Care. Typically, hospitals that own HMEs direct most patients needing medical equipment services to their company. By acquiring CareMed from the University of Chicago Hospital, Ultra Care gained access to referral sources and new business that has been “off limits for companies like ours for the last seven or eight years,” Callahan said.