New deal launches GMEA plan
PHOENIX – Global Medical Equipment of America (GMEA) has turned its attention from acquisitions to wholesale distributing as it seeks to grow even further.
In May, GMEA landed its first contract, with Netherlands-based IZI Bodycooling, which makes cooling braces, vests and headwear. GMEA will be the exclusive distributor for these products—both through its own locations and wholesaling to other companies.
“It’s just starting to come to fruition,” said CEO Harold Halman. “We’ve been focusing heavily on supply-side relationships, looking for advanced technologies.”
GMEA, which has focused heavily on acquisitions since it formed in 2010, currently has 11 locations across the country and generates about $12 million in annual revenues.
Eventually, customers will also be able to buy IZI products and other distributed products through a new website Halman plans to launch.
While competitive bidding and other industry challenges made it necessary for GMEA to search out new revenue streams, Halman says he certainly isn’t giving up on Medicare.
“We’re still active in the bid awards we were granted and areas where we’re going to subcontract and even those that are not bid areas,” he said. “We’re not going to change that.”
Still, GMEA plans to reduce its reliance on Medicare.
“We’re too dependent today on the third-party-payer relationship,” Halman said.