HME News

JUN 2016

HME News is the monthly business newspaper for home medical equipment providers. This controlled circulation publication reaches 17,100 home medical equipment services providers, including traditional HME dealers & suppliers, hospital- and pharmacy-o

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Vendors hme news / june 2016 / www.hmenews.com 21 By Liz BeauLieu, editor ELYRIA, Ohio – Invacare's name has been pop- ping up on the job board of RESNA, an association of rehab and assistive technol- ogy professionals, quite a bit recently, and there's good reason for it. The company, which seeks rehab sales specialists across the country, has made no secret in recent earn- ings calls that it's in the process of retraining much of its sales force to be specialists instead of generalists in not only complex power wheel- chairs but also home oxygen therapy and on down its product line. As the job postings imply, however, it's also adding new names to its payroll. "There's not a specific number we've put out there," said Lara Mahoney, senior director of investor relations & corporate communications for Invacare, about how many sales reps the company is hiring. "We're doing a lot of different things to expand our sales force and our presence ALL THINGS CLINICAL AT INVACARE in our product categories." Industry watchers view the move as Invacare putting the pieces in place for a post-consent decree play. The company has been limited in how it can manufac- ture and sell complex power wheelchairs per an agreement with the Food and Drug Administration ham- mered out in late 2012. But Mahoney says it's bigger than that. The push to reframe and grow its sales force meshes with a new strategy by Invacare to better leverage the products in its lineup, especially those that are more clinical and that might be better known by brand or subsidiary. One example: Motion Concepts, which became a subsidiary of Invacare in 2010, and now provides the seating and positioning for, and distributes ROVI power wheelchairs. "Many of these products are now avail- able through the Invacare sales force and part of our strategy is expanding that sales force to make sure they're trained and fully aware of the complete clinical portfolio that we have," she said. These changes very much carry the handwriting of Invacare's still relatively new Chairman, President and CEO Matt Monaghan. Under his tenure, the company has developed a new North America mar- keting campaign: "The whole is greater than the sum of its parts. One company, seven specialized brands with one common goal: improving outcomes and lives, one customer at a time." "Our passion for making life's experi- ences possible for the people who use our devices has led to our legacy of differenti- ated technology and teams of experts who continue to innovate," he wrote in an annu- al letter to shareholders in April, his frst. "We have a pipeline of new products in multiple brands and subsidiaries that will continue to bring clinical innovations. As we pursue a strategy to emphasize clini- cally differentiated and innovative medical devices, we will take greater advantage of these platforms." hme frst quarter. "We have so many subsidiaries around the world that have products that address, really well and uniquely, the complex rehab market," said Monaghan, chair- man, president and CEO. "That's part of what's driving the gross margin increase— the commercial success of these products already in the marketplace, including ROVI." Mobility and seating products make up the biggest chunk of Invacare's portfolio of more clinically complex products, an area of aggressive focus for two quarters now (see related story), Monaghan says. "Invacare is not a high volume, low cost supplier," he said. "We have a good legacy of putting engineering to work to make clinically differentiated products." Monaghan also provided a brief update on Invacare's consent decree, which has limited manufacturing and sales of com- plex rehab products from its Taylor Street facility. The FDA has responded to a third certifcation report from an independent auditor with clarifying questions. Invacare must now address those questions and submit its own report. Both reports must be approved by the FDA, which will then conduct a re-inspection. While the consent decree looms large in the background, fnancial results for the frst quarter show "very early indicators of success" from the company's strategy of leveraging its various subsidiaries and focusing on its more clinically complex products, Monaghan says. "We're more than just the consent decree and our products at the Taylor Street facility," he said. hme INVACARE C O n t i n U e D F R O m pa g e 1 INOGEN C O n t i n U e D F R O m p R e V i O U s pa g e revenue, and the company's guidance having already factored in an estimate of the reimbursement decline," the com- pany states in a recent Form 8-K. Inogen says it has lowered Medicare's contribution to its total revenues from 26.5% in 2014 to 21% in 2015. "The company believes it is well diversifed between its sources of rev- enue, business channels and geogra- phies," it states. The Round 2 re-compete, like the Round 1 re-compete, combines oxygen, and sleep and aerosol therapy into one product category. The company plans to stick to its strategy of offering sleep and aerosol therapy, subcontracting this business in certain areas, Wilkinson says. "While it has not been an area of strategic focus, Inogen has provided sleep and aerosol products as part of our offering for several years," he said. In areas where it has not been offered contracts, Inogen says it will, once again, grandfather existing patients—meaning it will continue to service these patients but will accept the lower payment amounts starting July 1, 2016, when the Round 2 re-compete amounts go into effect. It will also continue to accept new patients in these areas for cash pay and private insurance rentals. hme jAzzY AIR EXPANDS RETAIL OPTIONS C O n t i n U e D F R O m p R e V i O U s pa g e RESMED C O n t i n U e D F R O m p R e V i O U s pa g e $88.5 million, a 3% decrease. Breaking down financial results by product category, ResMed saw 15% growth in fow generators for the Amer- icas, and 10% growth for mask and accessories. The company's AirSense 10 and AirCurve 10 platforms, powered by cloud-based Air Solutions software, including the U-Sleep and myAir apps, continues to drive fow gen growth. "We are seeing a lot of uptake of our solutions across many customers, and we think that's driving the persistent growth," said Jim Hollingshead, presi- dent, Americas. hme product, this time for consumer power mobility and for retail, Walsh says. "The same need was there," he said. Pride Mobility believes the Jazzy Air, which has an MSRP of $4,200, is a technology that consumers are willing to pay a premium for, Walsh says. "When we were showing our prototype to end users at Abilities Expos, we asked them, 'What would you expect to pay for something like this,' and they said, '$8,000 and up,'" he said. "We were able to build a product and bring it in way under what you'd expect to pay for it. It's an affordable product for the end user, and it's a proftable product for the dealer community." To ramp up interest in the Jazzy Air, Pride Mobility has developed a specifc website for the technology, www.jazzyair.com, and it's demonstrating that technology at various events and promoting it aggressively on social media. It also offers point-of-purchase mate- rial and other programming to help providers get behind the product, Walsh says. "With the baby boomer generation com- ing into the marketplace with discretionary income, we're hearing from dealers that a retail offering in this product category is a must," he said. "We've had no problem get- ting them to line up for it." hme Made in LaFayette, GA Flex-A-Bed is the go-to supplier for hi-low bedding in the upscale adjustable bed market. Our Hi-Low model works great for those who don't quite need a hospital bed but do need something more than a traditional fl at mattress — plus it looks sleek and fashionable in the home. Our Hi-Low model can be raised or lowered vertically with the touch of a button. And our optional low-profi le mattress makes the minimum bed height as low as 19 inches — the ideal height for wheelchair transfers. Perfect for post-surgical situations! Our products have been built 100% in Georgia since 1979. And we are a cash sale — no Medicare! Let Flex-a-Bed be your source for top-quality adjustable bedding. Call or visit our website today to explore our full line of products. The Flex-A-Bed Hi-Low Model Ideal for those in home health care or assisted living environments. 800-648-1256 | www.flexabed.com Value-Flex Hi-Low Premier We offer a full line of beds designed to suit every customer's needs.

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