Heads roll at Rotech

April 7, 2003 ORLANDO, Fla. - In what some former employees are calling “Black Friday”, Rotech reportedly laid off 500-750 employees on January 24, including many regional and division managers. CEO Philip Carter apparently meet with many Rotech employees last December and gave them the lay of the land. “Phil Carter said that when he starts restructuring he starts at the top and works down,” said an ex-employee. “He started at the top with division and regional managers and now he is down to the clinicians.” Carter, who did not return phone calls, ultimately plans to reduce Rotech's workforce by 1,000, sources say. One former Rotech employee, quoted Carter as saying: “This is not a high tech clinical business — this is a distribution business within the healthcare arena.” “People at Rotech are starting to get real disillusioned with cuts,” especially cuts in clinical personnel, said another ex-employee. Carter took over as Rotech Healthcare's CEO and president in December, following a tenure at Apria where he was lauded for masterminding that company's around. In a March 25 press release, Carter stated: "It is apparent that considerable restructuring is needed in order for the company to be competitive with others in the home healthcare business. While much was accomplished as Rotech emerged from the Integrated Health Services, Inc. bankruptcy there is still more to do, particularly in head count reduction, fleet management and downsizing, driver scheduling, transfill station and real estate efficiencies, purchasing and inventory management, and billing consolidation.