Invacare to close billing service
ELYRIA, Ohio – Invacare will close Invacare HCS, a business unit providing billing services to HME providers, by Aug. 30, according to Lara Mahoney, director of investor relations and corporate communications.
Invacare is making the move as part of overall efforts to reduce complexity in its business, Mahoney says.
“It’s outside of our core business and not something we were able to focus on growing,” she said.
Invacare bought Akron, Ohio-based Bargmann Management and re-branded it as Invacare HCS in 2008. Offerings included billing best practices, invoice/statement mailing services and patient receivables management.
Invacare HCS has been part of a suite of services that the manufacturer has marketed under Invacare iPartner Solutions. Also part of the suite: business management and operations, and equipment repairs. Invacare will continue to offer those services, Mahoney says.
“These are services that are important to support our equipment,” she said.
When Invacare HCS closes, 47 employees will lose their jobs. Invacare has offered them transitional packages that include severance and healthcare coverage, Mahoney says.
“It was a hard decision to make,” she said.
Invacare explored various alternatives to continue operations at Invacare HCS, including a sale, Mahoney says. During an earnings call in April, company officials had hinted that Invacare might try to raise some cash by selling non-core businesses.
“Unfortunately, none of them were successful,” she said.
When Invacare acquired Bargmann Management, it had 300 clients. Mahoney declined to say how many clients Invacare HCS has today, but she said Invacare was waiting until Aug. 30 to shutter the company to give clients time to find an alternative.