Diversified Healthcare Services, the long-term-care division of ServiceMaster, has purchased DTEC, a pharmacy-management company, for an undisclosed amount.
James H. Coleman, DTEC's chief executive officer, president and former 100% stockholder, said his company has 140 contracts to operate hospital pharmacies. According to MODERN HEALTHCARE's 1995 Contract Management Survey, DTEC was the fourth-largest contract management company in that category.
Coleman said DTEC specializes in psychiatric hospitals, where it's the No. 1 firm. It operates in 30 states and employs 350 people. DTEC had $7.4 million in contract management revenues in 1994, according to the MODERN HEALTHCARE*survey. It didn't disclose net income.
Coleman said the new affiliation with Diversified Healthcare Services will allow DTEC to broaden its base and move into pharmacy management for long-term care, acute care and other specialty areas.
For ServiceMaster and DHS, he said, "it provided kind of an entree into a different kind of business than they were used to-pharmacy management-which nicely rounds out the portfolio they can provide to healthcare institutions."
The combination should be a good fit for both concerns, Coleman said. DTEC and DHS are based in Memphis, Tenn. DTEC will retain its entire corporate and management staff and will operate as a separate company. Coleman will continue as president of DTEC.