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Home Health Care Buys Drug Distribution Firm

January 05, 1985|LESLIE BERKMAN | Times Staff Writer

Home Health Care of America, a leading provider of home intravenous transfusion therapy, on Friday acquired Federal Prescription Service Inc., a mail-order pharmaceutical distributor based in Des Moines, Iowa, for an undisclosed price.

At the same time, the publicly held Newport Beach company said it expects to report record earnings and revenues for its fiscal 1985 second quarter and first six months, which ended Dec. 31.

For its second quarter, Home Health Care projected earnings of $1.7 million, in contrast to a loss of $1.7 million during the same quarter last year. Revenues for the quarter are expected to reach $16.3 million, up 34% from $12.2 million in the year-ago quarter.

For the first six months, Home Health Care expects earnings of $3.2 million, in contrast to a loss of $960,000 for the first half of fiscal 1984.

James M. Sweeney, chairman and chief executive, said Home Health Care's business has benefited from a movement by the health insurance industry, especially Medicare, to reduce reimbursements for hospital stays.

Home Health Care has 33 service centers throughout the country. The company provides medical support, including intravenous feeding and medication, to about 15,000 patients at their homes.

Sweeney said Federal Prescription Service Inc. is one of the largest firms of its kind in the country, selling about $7.5 million in prescriptions during calendar 1984.

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