Gemino in it for the ‘long haul’

Monday, March 31, 2008

PHILADELPHIA –In 2007, its first year in business, Gemino Healthcare Finance provided 12 healthcare companies with $45 million in credit, including $2.6 million to MedStar Surgical, a College Point, N.Y.-based home medical equipment provider. The Philadelphia-based firm also opened offices in Dallas, Los Angeles and Atlanta. HME News spoke with Gemino’s vice president of sales and marketing, Mark O’Brien, about the intricacies of HME lending.

HME News: What’s Gemino’s story?

Mark O’Brien: The management team had been together at a prior healthcare finance company, and we wanted to get back into niche lending to smaller providers—$1 million to $10 million. There weren’t that many pure lending companies out there specializing in health care. With the reputation that our management team had developed over the years with a lot of other healthcare providers, we thought we could come in and do a good job of providing the capital these companies need.
HME: It’s been a tough couple of years for HME. Why does Gemino think it’s a good place to lend money?
O’Brien We’re in it for the long haul, so we understand the business. There are always good operators that succeed. We saw that in the home health market years ago, when a lot of companies went out of business, but a lot of good ones survived. We have to do our homework and make sure we’re providing the capital to the right companies.
HME: How do you do that?
O’Brien: We go in and spend a couple of days onsite with our due diligence team. We make sure that, No. 1, we feel comfortable that the management team understands the business, and No. 2, we make sure we’re comfortable with their collateral. We also make sure that they have a plan to survive some of the issues that are going to be around.
HME: How have you let providers know you’re out there?
O’Brien: We have an alliance relationship with Invacare. We look at the financing opportunities that may come about with their customers and try to provide them with working capital solutions that can be beneficial for all those involved. HME