SoCal companies look to ‘make waves’ 

TUSTIN, Calif. – SG Homecare's acquisition of Western Drug Medical Supply will merge the two companies into a new entity, combining their strengths and enhancing their presence in the Southern California market. 

Combined, the companies have more than $150 million in annual revenue, 28 locations, more than 500 employees, and offer a full range of DME. 

“We're going through a full-scale integration right now from how we purchase to how we deliver,” said Jay Wendt, CEO of SG Homecare. “But one of the most important aspects is, we’re going to rebrand the company and we're going to reposition the company in the marketplace and come out as a new entity.” 

The acquisition bridges geographic gaps, especially in the Los Angeles area, where SG Homecare previously had limited reach. It also creates a more diverse payer mix. SG Homecare has primarily operated under a capitated, fully at-risk model, whereas Western Drug has specialized in fee-for-service and Medi-Cal, allowing the new entity to offer a more versatile and robust service model. 

Both companies emphasize the importance of maintaining their high level of customer care and commitment.  

“We want our current clients–whether they be referral sources, case managers or health plans–to have some familiarity with this new entity, as well,” said Haig Youredjian, CEO and president of Western Drug. “We don't want it to be absolutely brand new. It's going to come with the same experience that they've had in the past.” 

Moving forward, the new entity is poised to explore both organic and inorganic growth opportunities, adding distribution centers and potentially expanding into new states and tapping into other Medicaid populations. 

“We're looking forward to this opportunity to step outside the box and make waves in a different way than we have before,” Youredjian said.