Companies in the News
September 27, 1999 4 minutes read
Companies in the News
Coram faces another lawsuit
Coram Healthcare’s (Denver) Coram Resource Network division is facing another lawsuit, filed against the company by Beckett Healthcare (Sharon Hill, PA), which is claiming Coram Resource owes it more than $2 million. Beckett has filed a breach-of-contract suit against Coram Resource.
The Beckett suit is a fallout from the litigation Coram has against Aetna U.S. Healthcare (Blue Bell, PA), reported the Philadelphia Business Journal. Coram filed suit against Aetna two months ago, claiming Aetna misrepresented the amount of services its members would use. The suit seeks $50 million in damages. Aetna filed its own suit against Coram last month, accusing Coram of failing to honor the terms of its contract.
Coram Resource is also facing an involuntary bankruptcy petition filed by two subsidiaries of Apria Healthcare Group (Costa Mesa, CA) earlier in September. The subsidiaries had filed suit in California earlier, seeking $1.4 million in allegedly unpaid past-due invoices for services provided to Aetna members.
HCR gets name change
HCR Manor Care’s (Toledo, OH) board has confirmed that the company’s name will change to Manor Care, effective Sept. 25. This name change was anticipated in the September 1998 merger of Health Care and Retirement Corp. (Toledo, OH) and Manor Care (Gaithersburg, MD). There are no plans to change the names of any of the company’s facilities, buildings, or operating groups, the board said. The long term care group will continue to operate as HCR Manor Care.
Infu-Tech introduces Smartmeds.com
Infu-Tech (Englewood Cliffs, NJ) has signed a distribution and advertising agreement with InfoSpace.com for a Web-based advertising awareness campaign in which Infu-Tech will advertise its products and services throughout InfoSpace.com’s affiliate network. InfoSpace.com’s network consists of more than 1,800 Web sites.
Infu-Tech said it will leverage its more than 15 years of experience and contracts with more than 70 nationwide managed care providers that cover more than 25 million enrollees. Infu-Tech.
Infu-Tech said it plans to debut its Web site, called SmartMeds.com, at www.smartmeds.com, on Oct. 18. The site will include an on-line pharmacy featuring specialty pharmaceuticals, medical products, healthcare and disease management information, and patient interaction with medical professionals.
Kelly receives award for exemplary performance
The National Alliance of Business (NAB) announced that Kelly Services (Troy, MI) is the recipient of its 1999 NAB Distinguished Performance Award for Welfare-to-Work Company of the Year. Kelly is being recognized, NAB said, for exemplary and long-standing leadership in providing training and job opportunities for welfare recipients in its branch offices across the country.
Mallinckrodt establishes national network
Mallinckrodt (St. Louis) has established a national network of independent manufacturers representatives for its comprehensive portfolio of alternate care products to expand its service and accessibility to customers. The Mallinckrodt Alternate Care sales team is organized in to five regions, each headed by a regional manager responsible for the independent reps and the direct sales force. Responsibility for servicing many larger metropolitan areas rests with the direct sales force, and the independent reps will cover all other areas throughout the United States.
Option Care signs agreement with AvMed
Option Care (Bannockburn, IL) has signed a supplier service agreement with AvMed Health. Under the terms of the agreement, Option Care will provide home Infusion therapy services, DME, and home nursing to more than 57,750 AvMed members in the Tampa-St. Petersburg, FL, area.
Staff Builders on track to sell home health unit
Staff Builders (Lake Success, NY) said it is moving forward with the proposed spin off of its home healthcare division, working actively toward completion.
The company also has sold its entire interest in its majority-owned Chelsea Computer Consultants subsidiary to a subsidiary of MSX International (Auburn Hills, MI) for $17.5 million. Of the purchase price, Staff Builders said, $14.5 million was paid in cash and $3 million was held back, pending completion of the spin-off of Staff Builders’ home healthcare division. Five hundred thousand of the $3 million was assigned to a former principal of Chelsea.
Staff Builders’ shares rose 16% one day last week, after announcing the sale of Chelsea, reported Newsday.
UPC considers sale to Walgreens
UPC Health Network (Milwaukee), a subsidiary of Extendicare Health Services, is in negotiations with Walgreen Co. (Deerfield, IL) over a potential sale of the durable medical equipment company to Walgreen, reported the Milwaukee Journal Sentinel.
"We don’t have a definitive agreement," Michael Mervis, a UPC spokesman, told the Sentinel. "Due diligence and negotiations have been going on for a while." If the deal goes through, it could be closed in late November, he said.
If bought, UPC would become part of Walgreens Home Medical Centers, a unit of Walgreens Advanced Care, reported the Sentinel. Walgreens Advanced Care was formed in 1990 as a division of Walgreen Co.
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