Until then, profits had been running on a shoestring. In December 1989, the company reported a fourth quarter loss of $30.4 million. The downturn was exacerbated by the costs incurred by the closing of a number of offices and the settlement of a lawsuit with a former franchisee. Staff Builders experienced new setbacks the following year as it attempted to expand its medical services division, an arm that accounted for less than 40 percent of the firm's annual sales. However, rather than doubling its revenues by 1988, as the firm's leadership predicted, sales dropped nearly 20 percent. It had annual sales of $95 million, more than three times what it had reported in 1986. By that time, the company employed some 20,000 nurses in nearly 150 offices in 28 states. To reflect the new focus, the company changed its name from Tender Loving Care Health Care Services to Staff Builders Inc. Meanwhile, Tender Loving Care had been expanding its temp offerings into non-medical areas. His eye was on the $14 million heīelieved the new offices -located in Florida, New Hampshire, Texas, Michigan, Ohio, and Wisconsin -would add to TLC's annual revenues. Tender Loving Care's president, Ephraim Koschitzki, was not concerned about the legal problems. had been willing to spend for it -until CarePlus learned that Professional Care was under indictment for Medicare fraud in New York state. The price for the 11-branch firm was approximately $3 million in cash and notes, some $9 million less than CarePlus, Inc. The combined company, then known as Tender Loving Care Services, Inc., acquired another temp business, Professional Care Inc. Despite Norrell's opposition, however, the acquisition by Tender Loving Care was approved in January 1987. It announced that when stockholders met to vote on the TLC merger, Norrell would vote against it. When Staff Builders rejected the offer, Norrell launched a hostile takeover attempt, purchasing 610,000 Staff Builder shares, almost 20 percent of the company's outstanding stock. No sooner had the firm declined the British offer than another temporary help firm, the Norrell Corporation, attempted to purchase the company for about $33.6 million. Staff Builders rejected the offer, concluding that ownership by Tender Loving Care would be better for shareholders. developer of hospitals and health care facilities, made an offer estimated at $42.4 million, including over $10 million in cash. A month later, Hospital Capital Corporation, a U.K. Staff Builders had lost $2.2 million the previous year, but its value at the time, strategically at least, was evident from the bidding war that erupted when the TLC takeover was announced. Tender Loving Care had been founded in 1977 and went public in 1983. The deal called for TLC to take over Staff Builders in exchange for approximately $44 million in TLC common stock. (TLC) of the New York City suburb Lake Success. In August 1986, it agreed to be acquired by a competitor, Tender Loving Care Health Care Services Inc. By the mid-1980s, Staff Builders workers were also caring for growing numbers of AIDS patients. In rural areas, the company's temps were frequently used to staff hospitals, particularly where unions had not made inroads. Staff Builders offices in New York and other large cities provided mainly in-home care for the sick and elderly. By the time it finally incorporated in 1978, it had 72 offices located through the United States. Staff Builders began franchising its agencies in 1971. descended from Staff Builders, a New York City firm that specialized in providing temporary help in the medical field. A Medical Temp Service in the 1970s –80sĪTC Healthcare Inc. ATC Travelers, the company's travel nurse program, provides long-term care givers across the nation. ATC also provides a broad range of administrative staff such as administrative assistants, medical records clerks, collection, and personnel claims processors. Clients also have access to allied health professionals such as speech therapists, occupational therapists, physical therapists, and radiology technicians. Among ATC's pool of health care professionals are registered nurses, licensed practical nurses, and certified nursing assistants, as well as nurses in various specialty areas such as critical care, neonatal care, and mental health care. Its 67 offices are located in 26 states and supply a wide variety of medical personnel not only to hospitals, clinics, mental health facilities, and nursing homes but also to physician practice management groups, managed health care facilities, insurance companies, schools, community health centers, and in-home patients. provides temporary staff to health care facilities and private patients throughout the United States. NAIC: 621610 Home Health Care Services 561329 Temporary Help ServicesĪTC Healthcare Inc. Incorporated: 1971 as Staff Builders Inc.
0 Comments
Leave a Reply. |