AWG bets on scale, local care in HME expansion strategy

WASHINGTON – America Wellness Group (AWG) plans to use its acquisition of New Hampshire Medical Supply (NHMS) as the first step in building a larger home medical equipment (HME) platform that combines its centralized operations with locally focused patient care, says CEO Marcio Lima.

Lima, who began exploring investment opportunities in health care about a year ago, said the HME industry's complex reimbursement environment and regulatory requirements – often viewed as obstacles by investors – were actually part of its appeal as a sector well positioned for long-term growth.

"We have the technology, we have the capital and I have a lot of experience in highly regulated industries," he said. “But most importantly, we have the NHMS team and our partners. Their expertise and dedication give us the foundation to grow. We want to be 100% compliant and help companies with all the complicated parts that everybody hates, like accounting, billing and back-office operations."

NHMS was an attractive acquisition because it had already done a lot of work to organize and streamline its back-office operations. AWG believes it can scale those established processes across future acquisitions.

Centralizing operations, maintaining independence

AWG's strategy centers on consolidating back-office functions, while allowing acquired providers to maintain their local brands and customer relationships. Lima said preserving those identities is critical because they have often spent decades building trust within their communities.

"Our goal is not to promote AWG in any way," he said. "We want to keep the local legacy. We believe the brands have value, and we want to support them while keeping that local feeling."

Consolidated back-office functions also mean AWG can help address one of the industry's biggest challenges: employee turnover, says Lima.

“I think we'll be able to retain people better, pay people a little better than the average, and so as we grow, we don't have the turnover that I think is a big killer for the industry,” he said.

Investing in tech, maintaining human touch

AWG plans to invest in technology and artificial intelligence (AI), but primarily behind the scenes. Rather than replacing customer interactions, Lima said AI should help automate administrative tasks and compliance processes, freeing staff to spend more time supporting patients.

"My goal is to have patients still talking to humans," he said. "When people have those life events, they need support."

Creating opportunities, expanding access

As AWG pursues additional acquisitions, Lima pointed to respiratory care as one area where future partnerships could help expand offerings more quickly.

Ultimately, Lima said AWG's success won’t be measured by the number of acquisitions it completes, but by its ability to help providers serve more patients with a broader range of products and services.

"If we can expand service for more communities and help people maintain their lives as close as possible to before a health event," he said, "that will be a successful story for us."

• Related: AWG’s acquisition of NHMS was its first in the HME segment.