Interwest to buy HealthCor’s DME operations in Denver
September 27, 1999 2 minutes read
Interwest to buy HealthCor’s DME operations in Denver
By MEREDITH BONNER
HHBR Editor
Interwest Home Medical (Salt Lake City) will become the latest acquirer of HealthCor Holdings (Dallas) operations as the financially troubled company plans to sell its Denver DME operations to Interwest for an undisclosed amount.
Interwest said the purchase was approved last week by the Bankruptcy Court for the Northern District of Texas, Dallas unit. The transaction closed on Sept. 24 and became effective Aug. 1, when Interwest signed an agreement to manage HealthCor’s operations.
HealthCor filed for Chapter 11 bankruptcy protection in early August, claiming assets and liabilities of $71 million and $141 million, respectively. The company sited substantial changes in its operating environment due to Medicare reimbursement reductions as a reason for the filing.
Before the filing, HealthCor had begun a restructuring, whereby the company said it would divest some of its home nursing divisions and its DME business. HealthCor sold its Texas Community Care Service offices, which provide home care nursing, to Auxi Health (Franklin, TN) in mid-August. Also, ComTech (Houston) bought HealthCor’s Medicare and home healthcare operation in Beaumont, TX, and its Medicare and commercial home healthcare operations in League City, TX. Addus HealthCare bought HealthCor’s nursing operations in Arkansas. Finally, HealthCor sold its HME division in late June to Lincare Holdings (Clearwater, FL).
Interwest has already merged the DME operations into its existing branch in Denver, Serena Falgoust, Interwest corporate secretary, told HHBR. Its Denver branch primarily provides oxygen and respiratory services, she said, but it has some DME services.
Falgoust told HHBR the former HealthCor management team is no longer at the branch, but she said other job eliminations probably will not happen. Falgoust also said she is unaware at the time of any future purchases of additional HealthCor operations by Interwest.
HealthCor’s home oxygen and medical equipment operations have been in business in Colorado for more than three years and account for $7 million in annual revenues (mostly respiratory and oxygen services) primarily through managed care contracts.
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