Hanger & NovaCare : US Politics
Description
Collection
Title:
Hanger & NovaCare : US Politics
Date:
4/7/1999
Text:
The following was posted to AMP-L, an amputee listserv at University of
Washington by one of our diligent subscribers.
For those of you who wrongly think the thread re: consolidation is of no
concern to professionals outside the US, a quick observation.
I was not born in the US of A. But I have been here long enough to know
that whether you like it or not, when the US sneezes, other countries
often catch the cold. Like it or not, what happens in the US can, and
often does and will, have a profound effect in other countries. If you
happen to think that because you live elsewhere, in splendid isolation,
I suggest you carefully read Hanger's plans to take it international.
The US is the proverbial 600 pound gorilla. This may not be a pleasant
thought, and it might disturb your comfort zone, but it is a fact. What
happens in the US (politically speaking) will possibly effect your life.
The world is a smaller place, and no one can afford the luxury of
ignoring what happens in other countries, as we American's are so often
inclined to do.
BTW, for those outside the US who may not know, the Wall Street Journal
is the paper of record for financial matters. We used to call it The
Bastion of Christian Capitalism :(
Wayne Renardson: R-BK amputee.
-----------------------------------------------------------------------
The Wall Street Journal's Tuesday story -- appended below -- contains
some additional information about NovaCare and why they sold. They have
been doing very poorly and apparently are having trouble collecting from
Medicare on their prosthetics business.
The Wall Street Journal Interactive Edition
Tuesday, April 6, 1999
Hanger Orthopedic Agrees
To Buy NovaCare Division
By a WALL STREET JOURNAL Staff Reporter
BETHESDA, Md. -- In its latest bid to dominate the orthotics and
prosthetics industry, Hanger Orthopedic Group Inc. said it agreed to
acquire a division of health-care company NovaCare Inc., King of
Prussia, Pa., for $417 million.
The transaction, which is expected to close by June 15, also includes
$38 million in debt. In New York Stock Exchange composite trading
Monday, Hanger shares soared $1.875, or 14%, to $14.875, and NovaCare
rose 43.75 cents, or 37%, to $1.625.
Hanger has been on a buying spree, acquiring 18 companies in 1998 and
half a dozen, including this one, in 1999. With the NovaCare deal,
Hanger will have 625 outlets in 43 states, making the company the
pre-eminent player in the industry, said Hanger's chief executive, Ivan
Sabel.
Mr. Sabel said Hanger plans to continue acquiring companies
domestically. After that, he said he would begin acquiring companies
abroad to create a global prosthetics and orthotics provider.
[NOTICE PLEASE]
NovaCare is selling its prosthetics and orthotics unit, which it
acquired in 1992, to solidify our balance sheet in light of these
difficult times, CEO Timothy Foster said.
NovaCare, which also provides geriatric and outpatient-rehabilitation
services and has an employee-services business, has been hard hit in
recent quarters because of ongoing changes in Medicare reimbursement
policies. Its orthotics and prosthetics unit, with annual revenue of
$280 million, represents about a quarter of NovaCare's rehabilitation
business. The unit has 369 patient-care centers in 38 states.
Washington by one of our diligent subscribers.
For those of you who wrongly think the thread re: consolidation is of no
concern to professionals outside the US, a quick observation.
I was not born in the US of A. But I have been here long enough to know
that whether you like it or not, when the US sneezes, other countries
often catch the cold. Like it or not, what happens in the US can, and
often does and will, have a profound effect in other countries. If you
happen to think that because you live elsewhere, in splendid isolation,
I suggest you carefully read Hanger's plans to take it international.
The US is the proverbial 600 pound gorilla. This may not be a pleasant
thought, and it might disturb your comfort zone, but it is a fact. What
happens in the US (politically speaking) will possibly effect your life.
The world is a smaller place, and no one can afford the luxury of
ignoring what happens in other countries, as we American's are so often
inclined to do.
BTW, for those outside the US who may not know, the Wall Street Journal
is the paper of record for financial matters. We used to call it The
Bastion of Christian Capitalism :(
Wayne Renardson: R-BK amputee.
-----------------------------------------------------------------------
The Wall Street Journal's Tuesday story -- appended below -- contains
some additional information about NovaCare and why they sold. They have
been doing very poorly and apparently are having trouble collecting from
Medicare on their prosthetics business.
The Wall Street Journal Interactive Edition
Tuesday, April 6, 1999
Hanger Orthopedic Agrees
To Buy NovaCare Division
By a WALL STREET JOURNAL Staff Reporter
BETHESDA, Md. -- In its latest bid to dominate the orthotics and
prosthetics industry, Hanger Orthopedic Group Inc. said it agreed to
acquire a division of health-care company NovaCare Inc., King of
Prussia, Pa., for $417 million.
The transaction, which is expected to close by June 15, also includes
$38 million in debt. In New York Stock Exchange composite trading
Monday, Hanger shares soared $1.875, or 14%, to $14.875, and NovaCare
rose 43.75 cents, or 37%, to $1.625.
Hanger has been on a buying spree, acquiring 18 companies in 1998 and
half a dozen, including this one, in 1999. With the NovaCare deal,
Hanger will have 625 outlets in 43 states, making the company the
pre-eminent player in the industry, said Hanger's chief executive, Ivan
Sabel.
Mr. Sabel said Hanger plans to continue acquiring companies
domestically. After that, he said he would begin acquiring companies
abroad to create a global prosthetics and orthotics provider.
[NOTICE PLEASE]
NovaCare is selling its prosthetics and orthotics unit, which it
acquired in 1992, to solidify our balance sheet in light of these
difficult times, CEO Timothy Foster said.
NovaCare, which also provides geriatric and outpatient-rehabilitation
services and has an employee-services business, has been hard hit in
recent quarters because of ongoing changes in Medicare reimbursement
policies. Its orthotics and prosthetics unit, with annual revenue of
$280 million, represents about a quarter of NovaCare's rehabilitation
business. The unit has 369 patient-care centers in 38 states.
Citation
“Hanger & NovaCare : US Politics,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 28, 2024, https://library.drfop.org/items/show/211467.
