Issue link: https://read.dmtmag.com/i/52926
18 Providers BY THERESA FLAHERTY, Managing Editor PHOENIX – While many providers these days shy away from com- petitive bidding, Harold Halman is boldly embracing it. From acquiring companies in Round 2 CBAs to developing coded products for the homecare market, Halman, CEO of Phoenix-based Global Medical Equipment of America (GMEA), sees the dreaded program as an opportunity. "We believe that there's a chal- lenge we can meet and satisfy with regard to certain price points," he said. "With the right mix of prod- ucts, having the ability to manage costs and being able to provide service, we are confident we will qualify." A big part of Halman's plan involves rolling up strategically located providers with a strong Medicare business. In November, GMEA made its first such buy: The Palm Coast, Fla.-based Hospitality WWW.HMENEWS.COM / FEBRUARY 2012 / HME NEWS Who's afraid of competitive bidding? Not GMEA "With the right product mix, we are confident we will qualify." Harold Halman, GMEA Oxygen & Medical Equipment. In December, the company acquired Bridgeport, Ohio-based Patriot Medical Supplies. When it comes to looking for companies to buy, Halman says, he looks at the company's Medicare standing and certifications; prod- uct mix; local demographics and market share; and, perhaps most important, its reputation. "With other industries I have been involved with, it did not require being as service centric— this industry requires a much larger focus on the service aspect of the business," he said. "The healthcare community is not about simply strong sales and marketing. This is a service industry that is supported by good products." Meters, meters, everywhere but no support in sight…until now CALL US TODAY to learn how we can specialize a program to help you gain and retain customers and increase your margins. 1.800.848.0614 www.glucocardusa.com Affordably priced meter system • Proven accuracy1 • Ongoing customized support • Specialized programs to help you grow and retain business 1. Data on fi le Low Cost Highly Accurate Easy to Use Members of www.glucocardusa.com ARKRAY USA, Inc. Minneapolis, MN 55439 www.arkrayusa.com Nov. 2011 Retain your customers with our Patient Wellness Program • Starter Kit • Logbook • Smart Servings Guide • Delicious recipes GMEA has a hand in the supply side, as well. The company formed in 2010, after Halman met people who had product ideas, but no way to bring them to market. He saw an opportunity to line up suppliers, create a research and development group, and contract with manu- facturers to produce products that could then be distributed through his own retail locations. Products currently in development include incontinence and wound care supplies, rehab equipment and air quality products. "I assembled a group about three years ago, and said if we could put this together, we could have a nice little group of retail locations focused on servicing the market," said Halman. "Lo and behold, here we are." HME ROTECH CONTINUED FROM PAGE 1 has locations on the East Coast, including Philadelphia and Balti- more, both Round 2 competitive bidding areas (CBAs). Is it possible that Rotech is specifically targeting providers in those bid areas? "My gut would say not yet," said Patrick Clifford, a managing director with The Braff Group. "They didn't buy in Round 1 areas, from what I can tell, until the bid winners were announced. I don't know that that strategy would change." More likely, Rotech is looking to "fill out" in markets it already has a presence in, say analysts. On its website, Rotech indicates that it has 25 branches in the first nine CBAs, and 97 branches in 63 of the 91 CBAs included in Round 2. In all, it has about 453 branches. "They are buying assets more or less in any area that they have an existing presence to consoli- date the markets they feel they are the strongest in," said Don Davis, a financial consultant with Duck- ridge Advisors. In all, Rotech won 17 contracts in Round 1. HME