Continental’s rehab deal puzzles competitors
September 8, 2003
GLENDALE, Calif. - Continental Home Healthcare recently acquired the assets of MK Medical, which specializes in custom rehab. The acquisition, which Continental claims will make it the largest rehab provider in California, puzzles some competitors who saw MK Medical as a failing company.
"We really don't know what Continental is going to try to attempt to do because MK has lost most of its clientele to other companies," said Bob Clay, president of Clay Medical Services in Fresno, Calif.
Efforts to reach Continental were unsuccessful.
The company claimed in a release, however, that the acquisition will add $7 million in sales revenue and boost its total annual rehab sales to $12 million or 40% of overall revenue. The addition of MK Medical's three locations in Fresno, Bakersfield and Cerritos will allow Continental to market its other product lines, specifically its respiratory products and services, in three new markets, the company stated.
MK Medical problems are believed to be related to its recent string of owners, including the nursing home company Beverly Enterprises, which bought and quickly sold the rehab company in 2001.
"From what I hear, Beverly brought in their own management team and that was where everything started to fall apart [for MK Medical]," said Clay.
Continental bought MK Medical from Homecare Preferred Choice.