CressCare deal puts Hubs on growth track

MONTOURSVILLE, Pa. - The folks at Hubs Home Oxygen and Medical Supplies “love sleep,” so when they had the opportunity to acquire CressCare Medical, they jumped at it.

“We both love sleep, we understand sleep and we spend a lot of time there,” said Caryn Plessinger, Hubs president. “The companies complement each other and we are going to work off the strengths of both.”

Hubs retained all of CressCare's employees and the company name.

Those strengths include a commitment to clinical patient care: Both companies employ RTs and LPNs.

“I truly believe that to make a difference, RTs need to be involved in patient care,” said Plessinger, herself an RT. “The referral sources know we are not just going to take a patient order and throw the patient on just any equipment.”

Similar existing product lines and services, as well as many of the same software systems, made for an easy integration of the two companies, said Eric McNulty, vice president of business and finance for Hubs, who said the company is still considering whether to expand CressCare's offerings beyond respiratory. Hubs also offers durable medical equipment.

“We've researched some different product lines and avenues of revenue; some we've implemented, some we are still testing,” he said.

The acquisition of Harrisburg, Pa.-based CressCare also allowed Hubs to expand its footprint.

“Harrisburg is a much bigger territory,” he said. “Our locations were mostly northern, smaller rural areas.”

Hubs got its start as a wholesale distributor in 1955, and began offering home medical equipment in 1976. Medicare and Medicaid make up about 50% of its payer base.

Still, despite reimbursement challenges, Hubs doesn't skimp on patient care. Instead, the provider focuses on efficient operations, starting with the intake process. To provide such high-touch care means operating efficiently, starting with the intake process, said Plessinger.

“We make sure the therapists have the tools they need, and that we are meeting the expectations of the payer,” she said. “We also let the patient know upfront what their financial obligations are. We are not providing services without collecting co-pays upfront where applicable.”