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Hanger Prosthetics and Orthotics, a division of Hanger Orthopedic Group (NYSE: HGR)(NYSE: HGR) , owns and operates about 640 prosthetic and orthotic patient care centers in the United States. Corporate headquarters for Hanger Orthopedic Group, Inc., are located in Bethesda, Maryland. Hanger centers encompass roughly 25 percent of the prosthetic and orthotics patient care market in the U.S., a market estimated at $2.5 billion annually. About 650,000 patients visit Hanger centers each year; a staff of 3,500 employees includes about 1,060 prosthetic and orthotic practitioners.

Notable Hanger patients include: Jeremy Campbell, winner of two gold medals in the 2008 Paralympic Games, and world-record holder for the Pentathlon P44  ; Retired Staff Sgt. Heath Calhoun, veteran of the Iraq War (2003), spokesperson for the Wounded Warrior Project, and key advocate in the passage of federal Traumatic Injury Protection (TSGLI) payments to assist wounded American soldiers and their families; and Aron Ralston a mountain climber who became famous in May 2003 when he amputated his lower right arm with a dull knife in order to free himself from a boulder that had fallen.

History

James Edward Hanger, the first documented amputee of the American Civil War, founded the company in Virginia in 1861. He was 18 years old when he joined the Confederate cavalry at Philippi, Virginia, on June 2, 1861. One day later during the Battle of Philippi, he was struck by a ricocheting cannonball, requiring amputation of his leg above the knee. In August he returned to his parent's home wearing a prosthesis that was basically a wooden peg. His dissatisfaction with the fit and function of the limb replacement led him to design and construct a new prosthesis from whittled barrel staves, rubber and wood, with hinges at the knee and foot. He soon moved to the city of Richmond and established manufacturing operations for J.E. Hanger, Inc., locating a second facility in Staunton. The Confederate government commissioned him to manufacture “Hanger limbs” for other wounded soldiers. Hanger was awarded his first patent for an artificial limb, number 155, from the United States Patent Office on March 23, 1863. In 1906, Hanger moved the company headquarters to Washington, DC. Hanger’s five sons were active in the family business, and in 1915, they divided J.E. Hanger, Inc., into four separate companies, each operating in a different region of the country. That same year, the elder Hanger traveled to Europe to observe the latest prosthetic techniques as applied to wounded soldiers from World War I. At the time of Hanger’s death in 1919, the companies had offices in Atlanta, St, Louis, Philadelphia, Pittsburgh, London and Paris.

Significant technological advances in the U.S. prosthetic industry were largely absent in the years leading up to World War II. The new wave of amputee veterans demanded better prosthetic options, and in 1946, the federal government began providing funds for research and development in prosthetics. J.E. Hanger, Inc., was able to introduce new prosthetic socket designs made from improved materials such as thermosetting resins. In 1948, the American Board for Certification in Orthotics and Prosthetics Inc. (ABC) was formed to set minimum standards for practitioners' education and experience levels and to test their clinical knowledge. By the mid 1950s, J.E.Hanger, Inc., had added orthotic services to its business, and had expanded to 50 offices in the U.S. and 25 in Europe.

The 1960s and 70s held relatively few technological improvements, but the 1980s marked the beginning of a period of advanced technological development that continues to the present day. In 1986, Sequel Corporation, a Colorado-based communications company, sold off its cellular phone business and began investing in the prosthetics and orthotics industry. In 1989, Sequel bought J. E. Hanger, Inc., of Washington, DC. At the time of purchase, J. E. Hanger, Inc., was an $8 million business with offices in 11 cities and eight states. Sequel changed the name of the company to the Hanger Orthopedic Group. Ivan Sabel, president and chief operating officer, focused on centralizing the design and manufacturing of the company's prosthetic and orthotic devices and distributing them nationally. In 1996, the company bought J. E. Hanger, Inc., of Georgia. This acquisition doubled the size of the company, giving it 175 patient care centers, six distribution sites, four manufacturing plants and 1,000 employees in 30 states. Hanger Orthopedic Group continued purchasing small companies and by 1998, was operating 256 patient care centers. That number increased to about 625 when the company bought the prosthetic and orthotic division of industry leader, NovaCare, in 1999. Later that year, Fortune Magazine ranked Hanger Orthopedic Group as 79th on its list of One Hundred Fastest-Growing Companies.

The company has expanded its corporate holdings with related specialty businesses, and as of 2009, is comprised of four wholly owned subsidiaries that serve different segments of the prosthetics and orthotics industry. In addition to Hanger Prosthetics and Orthotics, the subsidiaries are:

• Southern Prosthetic Supply (SPS), an international distributor of prosthetic and orthotic materials. SPS has four distribution centers and 270,000 products offerings.
• Innovative Neurotronics, Inc., specializing in the development and commercialization of emerging neuromuscular technologies. Neuromuscular technology uses electrical stimulation to improve the functionality of an impaired extremity.
• Linkia is a network management company that works exclusively with the prosthetic and orthotic industry.

Patented Technologies

Hanger Prosthetics and Orthotics has several patented technologies including:

• ComfortFlex Socket for upper and lower extremity prosthetic users.
• Insignia, a handheld laser scanner that connects to a laptop computer and is used to scan the limb in order to create a prosthetic socket or an orthotic support and/or brace.
• V-Hold Suspension, a prosthetic socket with a vacuum pump, used for below/above knee prosthetic patients.
• WalkAide, a medical device for people suffering from foot drop. (Foot drop can be caused by multiple sclerosis (MS), incomplete spinal cord injuries, traumatic brain injuries, cerebral palsy, stroke, and other neurological involvements.)