Rice Medical picks up hospital's HME biz
WILLMAR, Minn. - Rice Home Medical has acquired the home medical equipment business of Douglas County Hospital in Alexandria, Minn., for $120,000, a local newspaper reported Aug. 18.
The hospital's HME business, which employs five, focuses on respiratory products.
Rice Home Medical plans to consolidate its Glenwood location and the hospital's Alexandria location. It will spend $290,000 to add inventory and move the business out of the hospital to a separate location, reported the West Central Tribune.
Rice Home Medical projects the acquisition will add about $300,000 in revenues for the rest of 2007 and $1 million in 2008. It believes Alexandria and surrounding areas are growing, based on a 14% census increase from 1990 to 2000 and a 7% increase from 2000 to 2005.
In all, Rice Home Medical has four locations in Willmar, Glenwood, Madison and Redwood Falls. The provider, part of Rice Memorial Hospital, generates about $6 million in revenues each year.