The Company operates two distinct business units: 1) selling and renting of critical care equipment and supplies to patients in the home, and 2) rentals of critical care equipment to hospitals.

The home care division experienced year-over-year declines in revenue, profitability and cash flow resulting from cuts in reimbursement rates and the cessation of reimbursement for certain rental equipment. In addition, this business unit was is in the process of modernizing its medical billing systems.

The hospital division was negatively affected by a downturn in the economy, which caused lower hospital occupancy levels and less patient visits.  This led to low asset utilization rates, causing reduced cash flows and tight liquidity.

Fort Dearborn Partners worked with management to define and implement its strategic initiatives, which included:

–Returning to sustainable profitability to allow for the ability to refinance its senior debt facility;

–Rationalization of  headcount, penetrating new sales channels and developing a plan to close and/or relocate its retail locations;

–Reducing equipment purchases and subsequent capital lease requirements and developing a plan to reduce inventory;

–Requesting management contribute capital to finance its operations; and

–Requiring management hire a controller to improve the Company’s financial information and management reporting systems.

The Company implemented most of Fort Dearborn’s recommendations and returned to profitability. 

The Company was able to successfully refinance its senior debt facility, based on its return to profitability.

The Company resumed making payments to its owners on the subordinated debt that had been contributed.