Two of the Northeast’s leading durable medical equipment providers, Allcare Medical and Landauer Metropolitan, announced today they have reached an agreement to merge their operations.
The merger, expected to be completed by the end of May, will result in one of the nation’s 10 largest durable medical equipment suppliers and the largest independently operated company of its kind in the Northeast. The newly merged company will operate under the Landauer Metropolitan name.
Lou Rocco will continue as Landauer Metropolitan’s CEO, while Win Hayes, currently CEO of Allcare Medical, will become Landauer Metropolitan’s President.
“This merger leverages the trusted name of Landauer Metropolitan and its proud history of providing the highest quality home medical equipment, with the forward thinking, progressive leadership at Allcare Medical,” said Rocco. “The combined businesses will provide all types of respiratory equipment and services, home medical equipment, and supplies to patients throughout the Northeast and Mid-Atlantic regions.”
The merger comes at a critical moment in the durable medical equipment industry. Beginning in July 2013, Medicare will expand its competitive bidding program to more areas of the country, which will reduce the number of providers eligible to supply durable medical equipment to Medicare beneficiaries.
Allcare’s Hayes said the merged company will be better equipped to handle the increased volume that is likely to result from those changes, without comprising service levels. He also noted that Landauer will benefit from having a large portfolio of contracts to service Medicare beneficiaries in its service areas.
“This merger creates a much stronger platform to provide patients high quality home medical equipment and respiratory services,” Hayes said, “but more importantly, it will further Allcare’s core understanding of managed care and the important role medical equipment solutions can play in reducing re-admissions and improving clinical outcomes while managing cost of care.”
Rocco and Hayes stated that the management teams of the two companies will integrate to ensure continuity of service for patients, referral sources, and institutional accounts.
Allcare, which is headquartered in Plainview, N.Y., currently operates in New Jersey, New York and Pennsylvania, while Landauer, headquartered in Mount Vernon, N.Y., serves patients in nine Northeastern and Mid-Atlantic states, and the District of Columbia.
Wall Street Journal
May 21st, 2013