Admar Group of Orange Plans Expansion in East

ORANGE — Admar Group Inc., a service company for the health care industry, said Wednesday that it has agreed to buy a Maryland-based firm that reviews patient treatment plans to contain insurance costs.

The $500,000 acquisition, which will give Admar a greater presence on the East Coast, is expected to close Nov. 30.

Admar has entered into a definitive agreement to buy HealthCare Strategies Inc. from its parent, TPA of America, a health care management company in Austin, Tex. TPA has been selling divisions as a part of a plan to change its business focus.

Richard Toral, Admar’s chief executive officer and chairman, said HealthCare Strategies has annual revenue of about $2.5 million, compared to Admar’s $10.5 million.

Toral said Admar, which does 90% of its business west of the Mississippi, has been making an effort to expand in the East by establishing preferred provider organizations to deliver lower-cost health care services in Boston and the Washington area.

He said that effort will be complemented by the addition of an East Coast review service, which reviews proposed medical treatments for insurance companies to make certain they are necessary and cost-efficient.