Two health care supply companies - Allcare Medical and Landauer Metropolitan - are merging in an effort to keep up with Medicare changes.

The deal, which should close by the end of May, will create a large durable medical equipment supplier. The combined company will operate under the Landauer Metropolitan name. Terms of the transaction were not disclosed.

Allcare Medical and Landauer Metropolitan are based in  Plainview, N.Y. and Mount Vernon, N.Y., respectively. The companies provide respiratory equipment, home medical equipment and other supplies to patients in the northeast and mid-Atlantic regions.

In July 2013, Medicare will expand its competitive bidding program to more areas of the country, which the company says will reduce the number of providers eligible to supply durable medical equipment to Medicare patients.

Win Hayes, Allcare’s CEO, says the merged company will be able to handle the increased volume that will likely result from the Medicare changes.

Other recent health care deals include ECM Equity Capital Management’s purchase of the MediFox Group, and Quest Diagnostics’ (NYSE: DGX) acquisition of California hospital Dignity Health’s lab-related clinical outreach operations

For more on the health care sector, see video interview, “Health Care: Better, Faster, Cheaper.” 

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