If you’ve been following healthcare news recently, you might find yourself asking: “Is Apria going out of business?” With murmurs of unit sell-offs and the recent acquisition by Owens & Minor, it’s only natural for such a question to circulate.
This is a brand that has served Americans for many years and has built a good reputation for itself in the healthcare industry. But the recent news about Apria doesn’t look so much like the image we have always known it for. Is Apria going out of business, really?
In this post, we will take a closer look at the issues with Apria Healthcare to uncover some of the events that have happened behind the scenes of the company. Just keep reading!
Table of Contents
A Quick Overview of Apria Healthcare
Apria Healthcare came into being in 1995 from the merger of two companies; Abbey Healthcare and Homedco. Since its creation, the company has been a reputable player in the healthcare industry, particularly in home health services.
Boasting nearly three decades of service, Apria has etched its name as a formidable provider of home medical equipment and a leading respiratory services provider. Apria currently attends to almost three million people across the United States.
However, recent events have shown that things don’t look as smooth for the company as they used to be. From suffering from a serious data breach to getting acquired by another company, Apria is indeed now almost a shadow of itself.
Is Apria Going Out of Business?
As it stands, Apria Healthcare does not appear to be going out of business. The company has gone through many changes and faced difficult times, but it remains a major player in the medical equipment industry.
Its commitment to providing extensive home health services, such as respiratory therapy and medical equipment, especially in California, is clear evidence of that. However, selling off a profitable intravenous therapy business unit in California and intentions to reduce its intravenous therapy business in Texas and Louisiana do raise eyebrows.
The company’s financial decisions, like cutting down its operations, might be interpreted by some as warning bells. However, such strategic choices are not uncommon in the business world, especially for a company that aims to refocus and strengthen its core offerings.
With 51% of its total revenue being sourced from supplying oxygen and related respiratory services, it’s plausible that Apria’s decision to sell off units might be more strategic than a sign of impending doom.
Apart from all of these, you should also know that there hasn’t been any official statement indicating that Apria might be shutting its doors soon. So, is Apria going out of business? The answer is no.
Now, let’s break things down a little bit more so you can better understand the present situation of Apria Healthcare.
Apria Recently Acquired by Owens & Minors
In a noteworthy development, Apria Healthcare was acquired by Owens & Minor, Inc., for an approximate sum of $1.6 billion. The acquisition, intended to fortify Owens & Minor’s existing business, is seen as a move that will enhance the experience for all stakeholders involved, including patients, providers, and payors alike.
The merger of Apria and Owens & Minor’s Byram Healthcare will create a new segment, “Patient Direct,” which will be overseen by Daniel J. Starck, who has been the CEO of Apria since 2015.
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Is Apria Facing Financial Challenges?
Selling off a unit, especially one that appears to be profitable, like the intravenous therapy unit in California, can trigger speculation regarding financial health.
However, selling off units is not always a sign of financial instability or impending closure but can be a strategic move to narrow focus and bolster core services and operations.
For Apria, the aim is clear. It is to beef up the business of supplying oxygen and related respiratory services, which have been lucrative revenue streams.
So, instead of seeing it as a sign that the company might be facing financial challenges, see it more as a strategic move to recalibrate the company’s operations to make them align more with it focus and goals.
Data Breach at Apria Affects Over 2 Million Customers
Data breaches are, unfortunately a common occurrence in today’s digital age, and Apria was not exempt. Between April 2019 and October 2021, Apria experienced unauthorized system access that affected more than 2 million customers. Many of them had their personal details, health records, and financial data compromised.
Even though it inflicted a reputational hit on Apria, the company responded by conducting a comprehensive investigation, notifying those affected, and involving law enforcement.
This breach, while significant, was an event from which the company has since recovered and does not directly correlate with the current speculation about its operational future.
How is Apria Acquisition Going to Affect its Patients?
With the Owens & Minor acquisition, Apria’s patients can potentially anticipate an improvement in the products and services they get from the company. Owens & Minor has a robust operational infrastructure, and Apria can leverage that to become an even more formidable player in the industry.
While there may not be any immediate operational activities now as both companies still function independently until full integration. Until then, no one can really tell what kind of changes to expect from Apria.
If you are one of the customers of Apria, just relax and keep enjoying the amazing healthcare services and products offered by the company.
Is Apria Going Out of Business – Final Note
“Is Apria going out of business?” seems to be the burning question on many minds. The answer, at least for now, is a resounding no.
Despite its recent challenges and strategic business decisions, Apria Healthcare continues to be a major player in the healthcare industry. This is not the first time we will see two companies in this space form a merger, and in most cases, it is always for the best. So, let’s hope that Apria comes out stronger after all of this!
FAQs
Is Apria Healthcare Still in Business?
Yes, the company is still very much in business, providing home healthcare services across the United States. Even though it suffered some recent turbulent moments, that doesn’t mean the end of the brand.
What Companies are Close Competitors of Apria?
Like in any industry, the healthcare industry is also known for fierce competition. So, you can expect that a company like Apria will definitely be facing competition from many similar businesses. Close competitors of Apria Healthcare include Lincare Holdings, Rotech Healthcare, and American HomePatient.
Does Blackstone Still Own Apria?
Well, as of the time of writing this post, Blackstone Group no longer owns Apria Healthcare. The company had been publicly traded, and further developments have occurred since then.
How Big is Apria?
Apria is a sizable player in the home healthcare sector in the United States. The company provides services to approximately 1.7 million patients annually. Apria offers home respiratory services, obstructive sleep apnea treatment, and negative pressure wound therapy, among other services.
How Many Locations Does Apria Healthcare Have?
The brand currently has over 275 locations across the United States, ensuring a wide geographical reach to serve its patients.
Does Apria Provide Diapers?
Interestingly, the answer is yes. Apria provides a range of incontinence supplies, which includes adult underpads, diapers, and related products, through its home delivery service.