Teijin exits homecare biz

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Tuesday, May 9, 2017

TOKYO – Teijin Limited is selling Braden Partners and Associated Healthcare Systems to PPS HME, an affiliate of Quadrant Management, effectively exiting the homecare business.

Teijin entered the North American homecare market in 2008, when it acquired Braden Partners in Bakersfield, Calif., Associated Healthcare Systems in Amherst, N.Y., and Home Therapy Equipment in Glen Falls, N.Y.

Braden Partners is better known as Pacific Pulmonary Services—Braden Partners acquired Med-Mart in 1993 and renamed the business Pacific Pulmonary Services in 1996.

Earlier this month, Pacific Pulmonary Services agreed to pay $11.4 million to the federal government to settle allegations that it participated in a kickback scheme. Five years ago, the FBI raided several of its offices.

Quadrant Management, a private equity and restructuring firm, already owns other home healthcare providers, including Landauer Metropolitan in Mount Vernon, N.Y., which it bought out of bankruptcy for $22 million in 2013.

Teijin said “extraordinary losses, mainly on sales of assets, will be recorded in fiscal 2016, which ended in March 2017,” according to a press release.

“Business conditions grew negative due to developments such as the U.S. healthcare reform, placing downward pressure on profits,” the company stated. “Teijin has been drastically reforming its home healthcare business in the U.S., (but) based on current conditions and the outlook going forward, it ultimately decided to withdraw from the U.S. market.”