Performance Home Medical (PHM), a provider of home medical equipment (HME) and respiratory services, has a new top executive.
The company recently announced the appointment of HME veteran Larry Mastrovich as its new CEO, teasing expansion goals and more at the same time.
Mastrovich, who has been serving as the company’s chairman since January 2024, steps into the CEO role following an investment from health-care-focused private equity firm Grant Avenue Capital.
Located in Washington state, PHM provides obstructive sleep apnea, oxygen, ventilator and continuous glucose monitoring devices and supply needs to more than 70,000 patients primarily in the Pacific Northwest.
Mastrovich told HME Business that the company’s vision is to become a leading provider of disease management services. PHM aims to secure contracts with insurance companies, focusing on “carve-out” capitated agreements that cover the patients under its care.
This strategy involves managing specific aspects of patient care within predetermined cost structures, he said.
“This strategic move will not only enhance our service delivery, but also ensure cost controls, allowing us to provide services at home,” he said.
Looking ahead, opportunities in the HME space will be driven by the aging U.S. population and the increasing prevalence of the diseases they experience, Mastrovich said. Providing essential services at home leads to better patient outcomes and is more cost effective than acute-care settings, he added.
“Furthermore, we have built a tremendous foundation in the Pacific Northwest and are well positioned to build upon that foundation and expand our footprint to states that most need our services,” he said.
The prevalence of obstructive sleep apnea, diabetes and chronic obstructive pulmonary disease continues to grow in several states, yet only a portion of those dealing with these diseases are diagnosed and receiving care, Mastrovich said.
“It is critical that we continue to scale our services to meet the demand for them,” he said. “Accordingly, we are working to perform a market analysis in underserved states with quality health-care providers to help us achieve this goal.”
Among Grant Avenue Capital’s other portfolio companies is Fortis Home Health & Hospice, which provides skilled nursing, end-of-life care and other services to patients in home-based settings.
Prior to taking the helm of PHM, Mastrovich worked at Apria Healthcare, where he most recently served as president and COO.
“We are pleased to partner with Larry, who brings a wealth of experience in scaling differentiated health-care businesses,” Eric Kim, principal at Grant Avenue Capital, said in a statement. “We look forward to working closely with him and the entire PHM team as we continue to support the company’s organic growth efforts, add-on acquisitions and investments in technology.”
