MATRIA Health Care - The Health Enhancement Company Did You Know? In 2006, employer health insurance premiums increased by 7.7 percent – two times the rate of inflation.
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Matria History

Out of Tragedy, Triumph

In June 1970, Parker H. "Pete" Petit lost an infant son to crib death. An engineering manager at the time, Petit felt inspired and determined to create a device that would protect infants against crib death, otherwise known as Sudden Infant Death Syndrome (SIDS). As a result, his son’s unexpected death provided the impetus for the founding of Life Systems, Inc.

Initially, Life Systems focused on developing infant home monitors, introducing its first product in 1972. But it was 1973 that the company's first big hit arrived – a device used by respiratory therapists to wean patients from ventilator dependency. That year also saw a change in the company name to Healthdyne, Inc.

As Healthdyne filled its first major order for infant monitors in 1976, it was already planning to diversify. In 1980, the company completed its first acquisition, a hospital product line. Then in 1982, an oxygen concentrator product line acquired from Bendix added to Healthdyne's high-technology home healthcare products.

Healthdyne came away from its initial public offering (IPO) in 1981 with a market valuation of $40 million and moved quickly to grow its stake in home healthcare, gathering successful homecare dealers across the United States into a burgeoning network. In 1982, the company completed a second stock offering at twice the price of its IPO. In late 1982, Healthdyne acquired Narco Scientific and its line of respected hospital products. In 1983, Healthdyne completed a third public offering and had a market valuation of $600 million.

In the mid-'80s, the company proceeded to build a domestic and international reputation as both a medical products manufacturer and a homecare services provider. Among the highlights of those years was winning the only state contract ever awarded for home monitoring of infants at risk for SIDS from the state of Florida.

Company revenues surged in the late 1980s through the introduction of several innovative products in the infant monitor and oxygen concentrator markets and a series of diagnostic and therapeutic products for the emerging practice of sleep medicine. But even more important to Matria's future, Healthdyne began focusing on the business of maternity management, moving first to establish Healthdyne Perinatal Services (HPS) to provide home monitoring of pregnant women at risk for delivering prematurely. As HPS was making its mark in maternity management, so was West Coast-based Tokos Medical Corp. Founded in 1983, Tokos pioneered preterm labor management.

By the early 1990s, HPS and Tokos were fierce competitors and rapidly expanding their national obstetrical homecare networks. Through their competition, HPS and Tokos brought about revolutionary changes to the industry – home monitoring devices for uterine activity, obstetrical disease-specific management programs and obstetrical risk assessment and education services. And as managed care became a powerful force in the distribution of care, both companies initiated programs to deliver maternity management services to health plan members. To more clearly reflect the breadth of its business, HPS was renamed Healthdyne Maternity Management in 1993.

The 1990s saw a flurry of corporate activity for Healthdyne, including taking Healthdyne Technologies, its medical device manufacturing business, public in 1993 before spinning it off to shareholders. In 1994, Healthdyne sold its home infusion therapy subsidiary, Home Nutritional Services, for $100 million and spun off its medical information business, Healthdyne Information Enterprises, in 1995.

With Healthdyne split into three separate publicly traded companies by the end of 1995, the remaining business unit of Healthdyne Inc., Healthdyne Maternity Management, was merged with Tokos in March 1996 to form Matria Healthcare. Having similar products and services and a combined 90 percent-plus share of the prescribing maternity management marketplace, the Healthdyne Maternity Management and Tokos merger captured synergies and cost-efficiencies in excess of $40 million.

With a solid financial base established from the merger, the company embarked on its strategic plan to leverage its competencies beyond managing the condition of pregnancy and into the emerging disease management market. Matria broadened its maternity management focus to include women's health services and programs, and the company identified other opportunities to leverage its disease management, telemedicine and call center expertise.

In 1998, Matria entered the respiratory disease management market, and in early 1999, it simultaneously acquired Gainor Medical Management, LLC, and Diabetes Management Services, Inc. to enter the diabetes disease management market. Early in 2002, Matria introduced its disease management program to manage patients with cardiovascular diseases.

Then in September of the same year, Matria advanced its growth strategy with the acquisition of Quality Oncology, the premier national provider of cancer disease management services. As a result, Matria became the only provider to offer disease management programs for the five most costly chronic diseases and episodic conditions.

At the end of 2002, Matria entered into a strategic agreement with Resources for Living, Inc. to expand the company’s presence into the management of five additional high-cost chronic conditions. With this alliance, Matria now offers disease management programs for depression, back pain, obesity, smoking cessation and substance abuse. In 2004, Matria added a disease management program for end stage renal disease (ESRD) and partnered with Pfizer, Inc. to provide a health risk assessment to identify and help employees at risk for developing serious illnesses.

While Matria is already a leading provider of comprehensive disease management programs to employers and health plans, the company plans to continue expanding its roster of healthcare services to include additional chronic diseases and a range of wellness, lifestyle support and preventive services.