How can a medical device and patient-care service company grow from one office and $1 million in annual revenues to more than 600 offices in 45 states with more than $575 million in annual revenues to become the dominant leader of its industry? The answer is through a combination of strategic mergers and acquisitions (M&A), quality of products and services, and good management with the assistance of a fullservice legal team.
Hanger Orthopedic Group, Inc. (NYSE: HGR) is the nation’s leader in designing, fabricating, fitting, and distributing orthotic (external braces) and prosthetic (artificial limb) medical devices, which include ultra-light carbon fiber materials used by NASA, state-of-the-art electronics that stimulate residual limb movement, and robotic artificial limbs that move in response to muscle stimuli from the wearer.
The humble origins of this company started when a man named J.E. Hanger, who was one of the first known amputees in the U.S. Civil War, created a simple, moveable knee joint to replace the old "peg leg" style of artificial leg for amputees. However, the company that Mr. Hanger founded more than 100 years ago remained as a very small part of what became, through the mid-1980s, a highly fragmented industry of more than 3,300 operators across the United States.
A radical change in the orthotic and prosthetic (O&P) industry began in the mid-1980s when a small public company changed its industry focus away from the telecom industry and purchased one of our clients — an O&P business with one office and $1 million in annual revenues. Since the company lacked knowledge and experience in the O&P industry, we became an important team member, helping the company engage in mergers, acquisitions, and organic business growth over the ensuing two decades as it began to consolidate the highly fragmented O&P industry; and this included the acquisition of the O&P companies that Mr. Hanger started so long ago. The company subsequently changed its name to Hanger Orthopedic Group, Inc. (Hanger).
Our legal team also expanded over time to help the company with (i) numerous rounds of private financings and public offerings of securities, (ii) federal reimbursement programs and compliance with increasingly complex healthcare laws and patient privacy issues, (iii) protecting the intellectual the pulse A Newsletter for Leaders in the Medical Device Industry property rights of unique medical devices that continue to be developed internally and/or in-licensed from third parties, (iv) managing and overseeing the growing number of locations (both owned and leased), (v) advising on issues related to the increasing number of employees, and (vi) protecting the company’s legal rights through resolving the normal amount of disputes that arise over time as a small company evolves and grows into an industry leader.
According to an old Chinese proverb, if you give a person a fish, then he or she will eat for one day, but if you teach a person to fish, then he or she will feed themselves for a lifetime. So too, the mission of Hanger has been to get physically challenged people to become mobile and selfsufficient so that they can provide for themselves and lead happier and more productive lives.
By providing comprehensive legal and business counseling services to Hanger through our inclusive team approach, Foley has helped a small company grow into an industry leader, one who makes a profound difference in the daily lives of physically challenged members of our society. This is a very rewarding experience for everyone involved.
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