Mediq may combine its various medical imaging companies into one business unit, according to Michael Sandler, senior vice president and CFO. The consolidation would be part of a general restructuring and downsizing of the diversified health-care company (SCAN 1/16/91).
Mediq was the largest supplier of mobile computed tomography and magnetic resonance imaging services until it sold that business to Mobile Technology (MTI) three years ago (SCAN 4/13/88). The firm continues to offer mobile ultrasound, nuclear medicine and x-ray services, however.
If a consolidation of medical imaging businesses takes place, the mobile operations would be combined with Mediq Equipment and Maintenance Services (MEMS), a Dallas-based independent service organization for imaging equipment, and Mediq Diagnostic and Treatment Centers (MDTC). MDTC, based at corporate headquarters in Pennsauken, NJ, runs six imaging centers.
The medical imaging companies are a core part of Mediq's business strategy and will not be divested in the restructuring program, Sandler said. The same cannot be said for Mediq's Copelco Financial Services, a medical equipment lessor. The mix of financial services and Mediq's health-care businesses has confused investors, he noted.
Following recommendations by Smith Barney last year, Mediq plans to divest many of its 24 business units. The divestitures will help raise cash to pay off a large debt load and focus the company on business areas that are less confusing to bankers, customers, employees and stockholders, Sandler said.
"We are overleveraged and the stock market doesn't understand us," he said.
Combining medical imaging businesses will help reduce corporate overhead and make use of complementary expertise. Mediq expects the combination will be appealing to the financial markets. If the reaction is favorable, Mediq might consider spinning the unit off into a separate company, Sandler said.
Mediq has already taken what could be considered a first step in the consolidation of its imaging businesses. The parent company appointed J. Thomas Owings, president of MDTC, as president of MEMS last month (see following story).
