Case Study:  Merger Integration - National Home Health Distributor

Situation and Objective

  • Acquisition of a $1B home health distributor

  • Provided national access to direct-to-patient market, establishing capability to service entire continuum of care

  • Continue to sustain core growth rates

  • Thoughtfully evaluate integration opportunities

Approach

  • Continue to support separate distribution platforms; customer-facing functions will not be integrated

  • Integrate recently-acquired home health competitor with this provider

  • Collaborate across business segments to deliver on synergy targets; create network of subject matter experts

  • Evaluate and adopt best practices from each organization

  • Combine contracts where feasible to leverage pricing or rebate tiers

Results and benefits

  • Consolidated redundant home health DCs

  • Successfully coordinated inventory forecasting and purchasing with shared OTC suppliers and supported 180% of normal demand spikes with 99.8% service levels

  • Achieved inventory savings by leveraging existing parent company contracts and by buying thru parent company when suppliers would not cooperate

  • Transitioned LTL and parcel carriers to corporate contracts and over-achieved synergy targets through negotiations ($1M)

  • Achieved indirect purchasing savings of $600k

  • Rebranded acquired company to create sense of integrated community and foster improved cross-company coordination