HME News

JUN 2017

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 20 www.hMenewS.COM / jUne 2017 / hMe newS HOT MarKeT: sUPPLies BD, Cardinal, Owens & Minor, NDC all make deals FRANKLIN LAKES, N.J., and mURRAY HILL, N.J. – Bec- ton, Dickinson and Company will buy C. R. Bard for $24 billion, the companies announced April 23. The deal builds on BD's position in medi- cation management and infection preven- tion, and increases its opportunities in fast- growing clinical areas like vascular therapy, according to a press release. "Combining with Bard will accelerate our ability to offer more comprehensive, clinically relevant solutions to customers and patients around the globe, creating a strong partner for healthcare providers who are increasingly focused on deliver- ing better outcomes at a lower total cost," said vince Forlenza, BD's chairman and CEO. Under the terms of the transaction, Bard common shareholders will be entitled to receive approximately $222.93 in cash and 0.5077 shares of BD stock per Bard share, or a total of value of $317.00 per Bard common share based on BD's closing price on April 21, 2017. At closing, Bard shareholders will own approximately 15% of the combined company. By combining Bard's strong leadership position and innovation pipeline in fast- growing vascular access segments—PICCs (peripherally inserted central catheters), midlines and drug delivery ports—with BD's leadership and innovation in Iv drug preparation, dispensing, delivery and administration, the combined company will be better positioned to provide end- to-end medication management solutions across the care continuum, according to the release. "Additionally, studies continue to emerge showcasing the boomerang effect of even short-term therapy withdrawal. It was very important to solve these problems." hOw BIG IS The MARKeT? "Anecdotally, there's a lot of pent-up demand for a travel CPAP," said Jim hollingshead, president, ResMed Americas, maker of the AirMini. "If you scale it and consider that 60 million to 70 million pass through domestic airports every month, and you consider the prevalence of obstructive sleep apnea and that 25% or so of adults have it—that's tens of millions of trips that could benefi t from a travel CPAP." whAT'S YOUR ADVAnTAGe? "(The DreamStation Go) has the few- est components, and features a built-in power supply and USB charging portal, while offering the same clinically proven therapy as our standard sized devices," D'Angelo said. "(It also) marks the debut of our 12mm micro-fl exible tubing, our smallest yet." "There are several advantages to the AirMini, including its small size (0.66 pounds and 5.4 x 3.3 x 2 inches)," hol- lingshead said. "It's also available with waterless humidifi cation, which essen- tially captures a patient's exhaled heat and moisture with a humidifi er in the mask tube and redelivers it to them." "Bard will expand BD's focus on the treatment of disease states beyond diabe- tes to include peripheral vascular disease, urology, hernia and cancer," it states. Following the acquisition, BD expects to create a third segment within the company called BD Interventional, where the Bard business will report both operationally and fi nancially. Separately, BD also announced on April 23 that Tom Polen, currently exec- utive vice president and president of the BD Medical Segment, will become president of BD effective immediately. In this new role, he will oversee BD's Medical and Life Sci- ences segments, as well as the new Inter- ventional segment. BD previously bought CareFusion, which manufacturers everything from infusion pumps and Iv sets to ventilation and respiratory products, for $12.2 billion in 2014.Bard previously bought Liberator Medical, a direct-to-consumer provider of home medical supplies, including cathe- ters, ostomy, diabetes and mastectomy, for $181 million in 2015. CARDInAL heALTh eXPAnDS SCOPe In hOMe heALTh CARe DUBLIN, Ohio – Cardinal health has entered into a definitive agreement to buy the patient care, deep vein thrombosis and nutritional inefficiency business of Medtronic for $6.1 billion in cash. Total revenues for that business, which encompasses 23 product categories across multiple market settings, were $2.3 billion for the 12 months ending October 2016. More than 70% of total sales were in the U.S., according to a press release. "Given the current trends in health care, including aging demographics and a focus on post-acute care, this industry-leading portfolio will help us further expand our scope in the operating room, in long-term care facilities and in home healthcare, reaching customers across the entire con- tinuum of care," said George Barrett, chair- man and CEO of Cardinal health, in the release. Cardinal health says the business is complementary to its medical consum- ables business and, once the transaction is complete, it will become part of its medical segment, which is led by Don Casey, that segment's CEO. OwenS & MInOR BUYS BYRAM RICHmOND, Va. – Owens & Minor, a global healthcare services company providing supply chain services to healthcare provid- ers and manufacturers, has agreed to pay about $380 million for Byram healthcare, it announced May 2. The White Plains n.Y.-based Byram is a leading supplier of home medical sup- plies, including ostomy, wound care, urol- ogy, diabetes and incontinence supplies. "Expanding across the continuum of care is a strategic imperative for us," said P. Cody Phipps, president and CEO of Owens & Minor in a press release. "With the addi- tion of Byram to the Owens & Minor fam- ily, we can quickly advance our strategic agenda with providers and manufacturers by expanding our reach beyond the hos- pital setting all the way to the patient's home." Of particular attraction for Owens & Minor: Byram's portfolio of more than 600 payer contracts covering 200 million lives. Owens & Minor is expected to close the transaction in the third quarter of 2017. nDC, DeDICATeD DISTRIBUTIOn COMBIne TO BeCOMe 'PARTneR OF ChOICe' NASHVILLE, Tenn. – nDC, a healthcare supply chain company, has acquired Dedicated Distribution, the companies announced May 4. nDC will use Dedicated Distribution, a wholesale supplier of home medical equipment and supplies, as a platform for its home Care division. nDC cur- rently serves several mar- kets, including the acute care physician, extended care, dental and home care markets. "Our combination with Dedicated Distribution is a natural fi t," said Mark Seitz, president and CEO of nDC, in a press release. "Their reputation for excellent service and never competing with its customers mirrors ours." Doug harper, former president of Inva- care Supply Group, will serve as president of nDC's home Care division, while Steve Cole will stay on as executive vice presi- dent of Dedicated Distribution, a division of nDC home Care. "Steve Cole and I have more than 60 years of unwavering commitment to dis- tribution," said harper. "We will leverage that experience, the skill of the Dedicated Distribution team and nDC's extensive resources to be the partner of choice for the home healthcare provider." HME whY STReSS ReTAIL? "It's an opportunity to introduce and pro- mote life-enhancing products that might not otherwise be offered or promoted in the traditional reimbursed pathway," D'Angelo said. "OSA patients have increas- ingly become more direct consumers of health care, and as insurance plans contin- ue to shift toward high deductible plans, people are more apt to spend their own money on health care. Often, these asks are geared toward specialty items that allow them to lead more fl exible lives." whAT'S YOUR GO-TO-MARKeT? "We want to create benefi ts for the patient, but we also want to create a new line of busi- ness for all of our hME channel partners," hollingshead said. "Providers are increas- ingly looking to retail and the AirMini offers them a premium, high quality product that they can, in turn, offer to patients that they're already servicing. So it's a win for the hME channel and patients." "Philips is currently under a limited launch phase, releasing the DreamSta- tion Go to select providers that special- ize in retail DME and who do not work with insurance providers," D'Angelo said. "This will allow us to garner a stronger understanding of the cash-pay dynamic and measure consumer acceptance of the DreamStation Go before we make the product more widely available. Philips plans to roll the product out to other cus- tomers in Q2 of this year." HME TRAVEL CPAPS C O N T I N U E D F r O M PA G E 1 RESmED EARNS C O N T I N U E D F r O M PA G E 1 9 With Invacare now ready for re-inspection, "the big question is how long all of this will take," Mahoney said. "It's hard for us to say." In the meantime, the green light to resume design activities couldn't come at a better time for Invacare. The company plans to launch an update to its TDX line of power wheelchairs later this year. "It's important," Mahoney said, "as we are now able to proceed with new design and product development work at the Taylor Street facility. This includes transferring the design of our new TDX SP2 power wheelchair to the facility and getting it into production there later this year." HME even with revenue cycle management for our customers, has really been an advan- tage for ResMed and the homecare custom- ers that have partnered with us, in allowing effi ciencies and freeing up cash fl ow so they can invest in better patient care," said Mick Farrell, CEO. For the Americas, ResMed reported rev- enues of $332.1 million for the third quarter, an 18% increase over the same period last year. Excluding Brightree, it reported reve- nues of $297.1 million, a 5% increase. For Brightree, ResMed reported revenues of $35 million for the third quarter, with growth continuing to track in the low double digits. "Brightree continues to grow strongly and in line with our acquisition model," said Far- rell, who pointed out there are more than 45 million patients accounts now in Brightree. Another contributor to revenue growth in the third quarter was masks, particularly the new AirFit n20 and F20. For the Americas, the mask and accessory category grew 8% in the third quarter. "This is up sequentially from the second quarter, refl ecting a strong demand for our new n20 and F20 products," Farrell said "There's (still) a long way to go on the ramp up of these mask products in the quarter and throughout fi scal year 2018." By comparison, the device category grew only 3% in the third quarter. Farrell pointed out, however, that it was up against a large year-over-year comparable of 15%. "We are maintaining the share we gained during the last 18 to 24 months," he said. Farrell cited three "catalysts" for driving up device numbers: increasing awareness with Pegasus Capital and Dr. Oz through Sleep- Score Labs; leveraging the trend toward con- nected care in non-invasive and life support vents, driving high margin growth; and mak- ing travel CPAPs more mainstream. "These things are potential catalysts for us to drive up that number," he said. "And I've got to tell you, we plan to do it." HME RE-INSPECTION C O N T I N U E D F r O M PA G E 1 9 Doug Harper

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