A Medical Device Daily
Duravest (Montreal) reported that it has completed the acquisition of Bio-Magnetic Therapy Systems (BMTS; Frankfurt, Germany) through two capital increases, in combination with a tender offer to all BMTS shareholders. Duravest has acquired a minimum stake of 70.59% at a total cost of $5,448,466 representing a controlling position in the company.
In order to facilitate what Duravest called a “highly accretive transaction,“ it obtained convertible financing.
BMTS is a German/U.S. firm focused on non-invasive treatments of osteoarthritis, osteoporosis and orthopedic injuries and associated pain management.
The company has developed a Pulsed Signal Therapy system that delivers a pulsed electromagnetic signal which it says has been clinically shown to stimulate the healing of connective tissue (i.e., cartilage, tendons, ligaments and bone) injuries.
BMTS said it is presently well established in Germany and sales will be expanded throughout Europe this year and Asia in 2007/2008. It has received FDA investigational device exemption status, and it estimates receiving FDA approval in 2008.
As part of the transaction, several management and board changes have been instituted. Rolf Kaese has been confirmed as CEO of BMTS, replacing its scientific founder, Richard Markoll.
Accuro Healthcare Solutions (Dallas) reported acquiring CodeCorrect (Yakima, Washington), which offers a set of web-based coding tools to help hospitals and physicians streamline the reimbursement process and optimize revenue. Terms of the transaction were not disclosed.
Accuro acquired CodeCorrect from an affiliate of United Communications Group (UCG; Rockville, Maryland).
This is Accuro's second acquisition in four months as a part of a plan to bring together more solutions and resources that will afford healthcare providers the necessary tools to enhance their revenue cycle process, it said. This past October, it acquired Innovative Health Solutions (IHS; Red Bank, New Jersey), which develops IT solutions for coding and coding compliance, reimbursement and information management (Medical Device Daily, Oct. 20, 2005).
With the acquisition of IHS and CodeCorrect, Accuro said it is now positioned as a leader in the chargemaster coding and compliance market.
CodeCorrect, together with its Chargemasters.com subsidiary, offers a product suite to include chargemaster maintenance, management and enterprise-wide tools, medical necessity verification, regulatory content, data analytics, comprehensive coding intelligence, and content linkages for access to all information in one location and cost management capabilities to hundreds of hospitals and thousands of physicians nationwide.
CodeCorrect will be known as CodeCorrect, an Accuro company. Its more than 70 employees will remain at its Yakima and Seattle offices.
In other dealmaking news:
• IPC (North Hollywood, California) said it has expanded into Ocala, Florida, through the acquisition of locally based Hospital Care Providers (HCP).
The eight providers in HCP, all of whom have now joined IPC, assist more than 30 local primary care physicians in caring for hospitalized patients at all three hospitals in the Ocala area: Munroe Regional Medical Center, Ocala Regional Medical Center and West Marion Community Hospital.
Hospitalists are acute-care specialists who focus on a patient's hospital care from time of admission to discharge.
IPC, which bills itself as “the nation's premier hospitalist company,“ collectively has more than one million patient encounters annually and manages more than $1 billion in annual healthcare expenditures.
• PainCare Holdings (Orlando, Florida), a provider of pain management solutions, including interventional pain management, minimally invasive spine surgery, orthopedic rehabilitation, ambulatory surgery centers and diagnostics, said it has acquired Desert Pain Medicine Group, a California-based pain management practice operating three offices in Palm Springs, Yucca Valley and Rancho Mirage, California.
PainCare will pay Edward Anderson Jr., MD, leader of the group, up to $6 million in equal amounts of cash and stock; 50% of the total consideration, or $3 million, was paid at closing, and the remaining balance of $3 million will be paid over three years according to predetermined earnings benchmarks.
Desert Pain works to restore function and enhance quality of life for patients suffering sub-acute and chronic pain.
Based on the pro forma historical financial performance of Desert Pain, PainCare said it expects it to contribute about $4 million in annual revenue and $1.2 million in annual operating income.
• Innova Health and Rehab (Mount Laurel, New Jersey), a post-acute and rehabilitation services company, reported the acquisition of the former Greenbriar Nursing Centers. Greenbriar sold its two southern New Jersey skilled nursing facilities.
The facility names will be changed to that of Innova Health and Rehab at Deptford and Innova Health and Rehab at Hammonton.