There was a piece in HME magazine headlined: Rotech back in Biz. There they bragged about now purchasing dme companies. Sure enough, I saw one of these letters. Things must be looking good.
The problem with rotech is that it does not want to reinvest in itself aka:equipment,software,laptops,cellphone,trucks.everything about this company is tired.It really is sad that management cant understand something so simple,and now thier time to shine has came and went.And all the other big companys have revamped and rotech will sit on the sidelines getting smaller and smaller,buying some small failling mom and pop DME company can not and will not work,theyre not fooling anyone.
Always makes you wonder what the real long term plans are for the company in general. When they were losing money left and right in the past before the bankruptcy they just kept on buying and spending untill they had spent all the past owners equity out the door. When you are bleeding money do you just keep spending? How does that make sense as far as being in the best interest of the company, employees, and the equity holders in general? Lucky for the new owners they can not be bankrupted out of their ownership again like the past stock holders were anytime soon. Thats especially good since just paying everyone for all the legal stuff last time around cost roughly 25 million bucks. That would have bought alot of trucks and stuff for sure along with the revenues from all the VA contracts they lost.
Simple. Rotech knows the black robed mafia will always cover their asses. Too big to fail? Buy more dme's. The more patients that are capped, the less likely a government judge will apply the same standards in rulings that apply to small companies.
Rotech will continue to lose va contracts,the va couldnt be more tired of the horid response times and beat equipment.bottom line is rotechs to greedy.
