May 21, 2013

Wright & Filippis Exits Diabetes Market

Wright & Filippis, a Michigan-based home medical equipment provider, has announced that it will be exiting the diabetes market. The company has entered into an agreement to sell its diabetic supply business to US MED, another home medical equipment provider.

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Home / Living with Diabetes / Wright & Filippis Exits Diabetes Market

ROCHESTER HILLS, Mich. – Wright & Filippis announced today that it has entered into an agreement to divest its diabetic supply business to US MED.

The reason: The company did not receive a contract to provide diabetes supplies as part of a national mail-order program that will go into effect July 1. US MED, along with 17 others, did receive a contract.

“Because of this change, we decided it was an appropriate time to sell our diabetes supply business to US MED,” stated AJ Filippis, president of Wright & Filippis, in a press release.

Due to the divestiture, Wright & Filippis will reduce its workforce by 3% over a 60-day period, according to the release. The company operates 35 locations and employs more than 900.

Wright & Filippis will now focus on its “traditional strengths” of orthotics and prosthetics, Filippis stated. Earlier this year, the company bought a controlling share of Carolina Orthotics & Prosthetics in North Charleston, S.C.

For its part, US MED may not be happy with the results of the mail-order program, but it’s committed to serving Wright & Filippis’ customers “with superior customer service,” stated CEO Zachary Schiffman in the release.

US MED is one of the largest providers of testing strips to Medicare beneficiaries in the nation. In 2011, the company received $25.7 million for strips, behind only Liberty Medical, DEGC Enterprises and Diabetes Care Club, according to data obtained from CMS and featured in the HME Databank.

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