Tuesday, March 28, 2023


I have watched with interest the discussions re: Hanger and preferred status

from SPS and the other Hanger companies.

I hate to read unsubstantiated rumor and innuendo on a professional list as

this one.

But, since the issue has been raised and there have been no official denials

from any of the Hanger upper management team, we must assume that it is

indeed based on truth.

I question whether these practices are a violation of antitrust laws.

As many of you probably don’t know, Hanger was forced to break up into

separate companies back in the late 40’s or early 50’s, due to antitrust

violations. As I have been told by an old timer I used to work with, Mike

Cestaro was an accountant who was brought in to straighten out the mess and

later was able to take control of Hanger Washington. The rest is recent


The costs of providing O&P care is about 1/3 hard items (those purchased from

SPS, PEL, Knit Rite, Cascade or whomever). The balance consist of labor costs

and overhead (rent, utilities, insurance, and, etc.). If one could reduce

their “hard costs” by 20-50% by buying from “yourselves,” he could save

possible $100,000 per year in a typical million dollar gross sales facility.

A significant sum that goes straight to the bottom line!

It is clear to me that any independent facility who supports the competition

by purchasing from them is sowing the seeds of their own destruction.

My facility does not purchase from SPS, Seattle Systems, CASH, Lenox Hill,

Dobi, or the like unless those components are specifically requested. There

are too many other manufacturers and suppliers out there who are also being

hammered by the “big dogs.”

Support those who support you!

Ron Kidd, CPO

American Orthopedics

Columbus, Ohio


Get unlimited access!

Join EDGE ADVANTAGE and unlock The O&P EDGE's vast library of archived content.


Welcome Back!

Login to your account below

Retrieve your password

Please enter your username or email address to reset your password.

The O&P EDGE Magazine
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?