Companies in the News
Baxter enters alternate care market with acquisition
Baxter Healthcare is acquiring the majority of Sabratek’s product lines, expanding the company’s infusion pump product portfolio to the alternate care market, reported The Gray Sheet. The acquisition will expand Baxter’s I.V. Systems/Medical Products Group’s presence in the ambulatory market, allowing the company to supply pumps to the home care market, as well as to surgi-centers, clinics, nursing homes, and subacute care facilities.
The decision to acquire several Sabratek operations for $40 million-$50 million was announced Dec. 20. The transaction, subject to approval of a federal bankruptcy court, is expected to close in 1Q00.
In addition to pumps and related devices still in development, Baxter said, the company will gain Sabratek’s 3030 Stationary Infusion Pump, 6060 Ambulatory Infusion Pump, its Rocap unit’s herapin and saline pre-filled syringe products, and related accessories, The Gray Sheet reported.
Columbia executives granted freedom
Two former Columbia/HCA Healthcare (Nashville, TN) executives who were supposed to begin federal prison sentences this week were freed pending appeal of their convictions on charges of Medicare fraud. The two Columbia executives were convicted by a jury last summer on six counts of cheating government health insurance programs in cost reports, reported the St. Petersburg Times. The men were granted freedom while their cases are being heard by the 11th U.S. Circuit Court of Appeals in Atlanta.
Option Care launches new division
Option Care (Bannockburn, IL) last week launched its specialty pharmacy and distribution division, OptionMed. The new division will contract with managed care organizations and physician groups to provide biotech injectable drugs for administration to patients in physicisns’ offices and other alternate sites. The division will also market injectable drugs and provide pharmacy consulting services directly to physicians and patients, Option Care said.
Star Multi Care sees 2nd consecutive profit
Star Multi Care Services (Huntington Station, NY) reported last week its second consecutive quarter of profits. The company saw a net income in 2Q00 ended Nov. 30 of $53,336, 1 cent per share, compared to a 2Q99 net loss of $101,336, 2 cents per share. The increase, Star Multi Care said, was attributable to restructuring efforts of the past year, as well as an increase in the gross profit margin.
Star Multi Care saw net revenues in 2Q00 of $9.9 million, a decrease of $2.2 million from 2Q99 revenues of $12 million. The company says the decrease is primarily attributable to a reduction in authorization of service hours related to the New Jersey Medicaid program, the reduction of visit authorizations on Medicare subcontract services provided in New York and New Jersey because of Medicare reductions, and the termination of underperforming contracts in its Florida operations.