In the News: Fast-growing Rehab Medical buys two firms, swelling workforce by 40 percent
Story Originally Published in Indianapolis Business Journal
By John Russell
A fast-growing Indianapolis company that provides medical-rehabilitation equipment to patients is pushing hard for more growth, announcing two acquisitions that will help boost its workforce by about 40 percent to 350 workers.
Rehab Medical said the deals will allow it to meet growing demand and help diversify its product line.
“We are very busy right now,” said CEO Patrick McGinley. “We continue to grow.”
The two acquisitions, announced in recent days, are Cork Medical, a wound-care company based in Indianapolis, and OMS Rehab, a maker of orthotic devices based in Kansas City, Missouri. Terms were not disclosed.
Before the two deals, Rehab Medical had between 225 and 250 workers, McGinley said. It plans to keep all 100 workers of Cork Medical and all 15 employees of OMS Rehab. It also expects to add about 50 more workers through organic growth this year.
The growth spurt is just the latest for Rehab Medical, which has been expanding at a rapid clip in recent years. It saw its revenue jump 65 percent between 2015 and 2017, making it the 22nd fastest-growing company in Indianapolis on IBJ’s Fast 25 list last year.
What the company does is help patients get equipment for rehabilitation, from power wheelchairs and beds to wound-therapy products and mobility devices. The company acts as a facilitator between patients, physicians, rehab specialists insurance companies and equipment manufacturers.
McGinley said it made sense to combine the companies because they will help expand his product line and serve more patients.
Cork Medical specializes in products that treat pressure ulcers, sometimes called bedsores, which result from prolonged pressure on the skin.
“The deep product knowledge that Cork was able to provide to assist patients that we work with on a daily basis will give great benefit to those patients,” McGinley said.
OMS supplies orthotic bracing and rehab equipment for the long-term care industry.
The deals come just a few months after Rehab Medical acquired Family Medical Supply of Oklahoma City, a supplier of medical equipment with 21 employees, in November.
Rehab Medical, based at 6365 Castleplace Drive in the Castleton area of Indianapolis, operates in 15 states.