Rotech announces layoffs at billing center

‘It’s a strategic move,’ says president and CEO
Friday, August 14, 2015

ORLANDO, Fla. – Despite “momentum” from a string of recent 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. The layoffs will take place at Rotech’s 3600 Vineland Road location, a billing center.

“We are going from five (billing centers) to four,” said President and CEO Tim Pigg in an email to HME News. “It is simply a strategic move for us for the future.”

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 Pigg in a press release about the Alert acquisition.

Rotech has also bought assets from Specialized Medical Services in Cody, Wyo., and assets from unnamed companies in Arkansas, Louisiana, Mississippi and Florida.

“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,” said Pigg in a release about the Specialized acquisition.

Rotech will continue to execute its acquisition strategy, Pigg says.

“It’s business as usual,” he said.

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.