Apria Healthcare Group Inc. has decided against paying for pending acquisition Coram Inc. through debt.
The Lake Forest-based home healthcare provider withdrew a $265 million debt offering earlier this month because of weak market conditions.
Apria is planning to spend $350 million for Coram, a privately held, Denver-based provider of drug and feeding treatments to patients in their homes.
Instead of debt, Apria said it anticipated closing the Coram deal in early December, using funds available under its $500 million revolving credit line.
Apria said it was buying Coram a month ago.
Chief Executive Lawrence Higby, in an earlier Business Journal interview, said buying Coram filled out Apria’s infusion business and made it a national provider.
Analysts liked the diversification aspects of the deal, but questioned the high price tag since Coram is a slow-growth, low-margin business.
Higby defended the price, stating the buy is in line with other recent deals, such as Walgreen Co.’s $850 million purchase of Option Care Inc. earlier this year, which sold for similar multiples.
Apria is paying roughly 16 times Coram’s earnings before interest, taxes and other items.
Microsoft Taps St. Joseph
St. Joseph Health System, the Orange Catholic hospital operator with 14 facilities, said earlier this month that it would begin using Azyxxi, a software system that collects and displays “real time” patient data, in early 2008. Microsoft Corp. of Redmond, Wash., makes Azyxxi.
Azyxxi can be used on computers, handheld devices and tablet personal computers. It can respond to clinical, administrative and research-specific questions. The system also includes “decision support tools,” which are intended to help doctors determine the best treatment options for patients.
The Johns Hopkins health system in Baltimore and New York Presbyterian Hospital are a couple of the hospitals using the system.
Microsoft bought Azyxxi in 2006. Azyxxi was developed by a pair of doctors and a software developer using Microsoft tools.
St. Joseph’s 14 hospitals include St. Joseph Hospital-Orange, St. Jude Medical Center in Fullerton and Mission Hospital in Mission Viejo.
Hoag Gets $1M
Dick Allen, a board member of Hoag Hospital, and his wife, gave $1 million to Hoag Memorial Hospital Presbyterian in Newport Beach earlier this month. The money will
be used to expand the hospital’s diabetes
programs.
The Allens gave the money to the Hoag Hospital Foundation’s fundraising campaign for Hoag Diabetes Center.
The center and its programs are going to be located at Hoag Health Center-Newport Beach, adjacent to the hospital’s main campus.
The center is also going to have a special emphasis on pediatric services, and specialty physicians from Children’s Hospital of Orange County will have offices adjacent to the center to ensure that pediatric diabetics receive immediate care and follow-up.
Garrett Elected to Institute Board
Scott Garrett, chief executive of Beckman Coulter Inc., the Fullerton maker of medical tests and gear, is one of two new members of the California Healthcare Institute’s board of directors. The La Jolla-based institute is a nonprofit public policy research organization that represents more than 250 academic institutions and biotechnology, medical device, diagnostic and drug companies.
Garrett and George Scangos, chief executive of Exelixis Inc., a San Francisco-based biotech company, are new to the institute’s board.
The group’s leadership features other individuals with OC ties, including David E.I. Pyott, chief executive of Allergan Inc.; Michael Mussallem, chief executive of Irvine heart valve maker Edwards Lifesciences Corp.; University of California, Irvine Chancellor Michael Drake; and David Powell, worldwide president of Advanced Sterilization Products, an Irvine-based unit of Johnson & Johnson.
School Takes Anaheim Space
Summit Career College has leased 27,212 square feet of office space at 1360 S. Anaheim Blvd. in Anaheim. The five-year lease is valued at $3.2 million.
Summit offers healthcare vocational training, including nursing, medical billing, and medical and dental assistant programs.
The vocational school is expected to relocate into the new space from its current location at 1830 W. Romneya Drive, also in Anaheim.
Tom Abel, a first vice president with CB Richard Ellis’ Anaheim office, represented the Lee Family Trust, the building’s landlord. CJ Stos of Master Development represented Summit.
Bits and Pieces:
Cardiogenesis Inc., an Irvine medical device maker, received Food and Drug Administration clearance for its Pearl 5.0 robotic device, which uses lasers to treat angina in patients who aren’t candidates for bypass surgery Community Care Health Centers, a Huntington Beach-based network of federally qualified health centers that serve the working poor, will become a regional unit of AltaMed Health Services Corp. of Los Angeles, effective Dec. 1 Masimo Corp. of Irvine released study results showing that its Rainbow SET device improved detection of congenital heart defects in newborn babies.
