Reliable Medical has staked a claim in California with its acquisition of Hometown Medical Supplies, a San Jose-based provider of primarily mobility equipment.
Right out of the gate, Reliable Medical will add three ATPs to Hometown Medical’s four ATPs, expanding the company’s ability to serve complex rehab patients from locations in San Jose, Los Angeles, Visalia and Stockton.
“There’s a strong demand in this market,” said Katie Stevens, CEO of Reliable Medical, who was based in California prior to joining Reliable Medical. “There’s a large population of people who need these products and services, but the market has consolidated a lot, so they need more options. We think they stand to benefit from Reliable and our way of approaching complex rehab.”
In the fall of last year, Reliable Medical, a portfolio company of Seven Hills Capital, partnered with Complex Rehab Technologies in Stafford, Texas, jump starting its march west.
Like Reliable Medical, Hometown Medical Supplies offers DME, in addition to complex rehab, a business model that’s different than the specialization that’s been more common in the market in the past few years.
“I think there is, naturally, a good marriage between DME and CRT,” Stevens said. “I understand that others have business models that are specific to CRT, but ours has always been diverse. In our opinion, it creates convenience and a better experience for the end user and the referral base. They can work with us for all of their needs.”
It’s that mentality that also drove Reliable Medical to partner with ATC Medical earlier this year. ATC Medical is an internet-based, multi-channel distributor of medical, surgical and therapy supplies in Germantown, Tenn.
“ATC has 40,000 products available online for drop ship with a national reach,” Stevens said. “It’s not a shift away from our clinical model, but a nice added convenience for those customers, facilities and workers comp groups that just want to go online and buy something. It’s what’s demanded at this point.”
Reliable Medical also believes there’s an e-commerce play in complex rehab, especially when it comes to products that aren’t coded or covered.
“There’s some new and exciting technology that pairs well with complex rehab,” Stevens said. “e-commerce is a good solution for customers to access those items.”
The M&A market for healthcare companies continues to strengthen in 2022 ahead of projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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