Seller: Home Health Depot
Sector: HME, medical supply
INDIANAPOLIS It began shedding business segments three years ago and now Home Health Depot has sold what is left to Clearwater, Fla.-based Lincare, according to the Indiana Business Journal.
Nathan Feltman, a majority owner of Home Health Depot, along with business partner and friend David Hartley, told the journal that it became apparent a few years ago that it would be increasingly difficult to remain profitable as a smaller diversified company in the current market due to declining Medicare and Medicaid reimbursement rates.
Feltman told the journal that he expects companies like Lincare and Lake Forest, Calif.-based Apria Healthcare to dominate the market going forward because of their size. Lincare is part of theÂ Linde Group, a Germany-based multinational corporation that had revenues of $10.8 billion in 2016.
At its peak, Home Health Depot had 260 employees working across five divisions in six states and revenues of $32 million, according to the journal.
Feltman and Hartley will work with Lincare on the transition over the next year, then pursue other opportunities. They had 40% stakes in Home Health Depot at the time of sale, with two other investors each with 10% stakes, the journal reported.
Home Health Depot sold its complex rehab business toÂ National Seating & MobilityÂ in 2014 and its home access business in 2016. The company sold its hospice business toÂ National HMEÂ earlier this year. Both NSM and National HME are private-equity backed by Court Square Partners and Tailwind Capital Group, respectively.