Rotech announces layoffs
ORLANDO, Fla. – Despite “momentum” from a string of acquisitions, Rotech Healthcare plans to lay off 90 employees by Oct. 9.
The provider, one of four “nationals” in the HME industry, filed a Worker Adjustment and Retraining Notification with the state on Aug. 12, according to news reports.
The layoffs will take place at Rotech’s 3600 Vineland Road location, a billing center.
Rotech has a total of 3,500 employees in 450 locations in 48 states.
Since late last year, the provider has made at least six acquisitions, including the respiratory equipment assets of Alert Medical in Fort Meyers and Naples, Fla., in July.
“The momentum continues,” said CEO Tim Pigg in a press release about the acquisition.
Rotech has also bought assets from Specialized Medical Services in Cody, Wyo., and assets from unnamed companies in Arkansas, Louisiana, Mississippi and Florida.
Of the Cody, Wyo., acquisition, Pigg said in a press release: “Unlike many of our smaller distressed competitors, we have the staying power to ride the current market difficulties and capital available to invest in our core products and target healthcare markets.”
Rotech emerged from Chapter 11 bankruptcy in September of 2013. As part of a reorganization plan, the provider reduced its debt from about $600 million to just under $300 million. Its annual cash interest payments were reduced from $60 million to $20 million.