HME News

JUL 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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Page 20 of 24

■ Mediware's recent acquisition expands its presence in the alternate care market. See story next page. Inogen, Invacare report Q1 financial results. . . . . . . . . 1, 20 Invacare announces another round of layoffs . . . . . . . . . 20 Hans Rudolph spans multiple generations . . . . . . . . . . . . 21 People news: Sunrise, VGM, Permobil, Drive . . . . . . . . . . 21 Vendors 20 hme news / july 2017 / Briefs F&P grew homecare revenues by 4% in 2017 AUCKLAND, New Zealand – Fisher & Paykel Healthcare reported net profit after tax of NZ$169.2 million for the fiscal year ended March 31, 2017, an increase of 18% over the previous year. Operating revenue was NZ$894.4 million, a 10% increase over the previous year, or 14% growth in constant currency. F&P says both were records for the company. By segment, the hospital product group grew revenues by 15% to NZ$500.4 million, or 19% growth in constant currency; and the homecare product group grew rev- enues 4% to NZ$381.5 million, or 8% growth in constant currency. "In the homecare prod- uct group, our masks continue to perform well, with 9% revenue growth or 13% in constant currency, compared to the previous year," said CEO Lewis Gradon. "The new F&P Brevida nasal pillows mask, which was launched in August, is already showing great results in the markets where it is available. Our myAirvo home respiratory system is also growing strongly, building from our market- leading position in hospital humidification." As part of its earnings, F&P also disclosed litigation-related expenses of $20.7 million in the 2017 fiscal year as part of its patent litiga- tion proceedings with ResMed. Res m ed withdraws complaint, plans to refile... SAN DIEGO – ResMed has filed a motion to dis- miss a complaint against Fisher & Paykel so that it can refile using new evidence it has gathered that will it a give stronger case, according to a press release. ResMed first lodged its complaint with the International Trade Commission in August 2016. ResMed claims that the New Zealand based Fisher & Paykel's masks violated its patented tech- nology. In January, ResMed settled a long- running patent infringement battle with BMC and 3B Medical. ...connects dots on cs A SAN DIEGO – People with treatment-emergent central sleep apnea (CSA) have a significantly greater risk of terminating CPAP therapy, ac- cording to a new ResMed-sponsored study. Researchers found that 3.5% of patients had CSA during the first 90 days of therapy. ResMed says the study highlights the impor- tance of regularly monitoring patients to sup- port adherence to treatment, and diagnosing CSA early to minimize risk of therapy termi- nation. The study builds on another study re- leased earlier this year that showed patients with treatment-emergent CSA who switch treatment from CPAP therapy to adaptive servo-ventilation therapy use their therapy longer and have significantly fewer apneas during sleep. Q s /1 seeks new leadership SPARTANBURG, S.C. – Tammy Devine, presi- dent of QS/1, will retire later this year. Devine began her career at the company as a pro- grammer, nearly 35 years ago. She became president in 2011 after holding a series of managerial roles. Inogen sees growth curve for POCs Another round of layoffs at IVC A RACE FOR BIZ THAT SPANS GENERATIONS HANS RUDOLPH Van's best friend After Van G. Miller, VGM's founder passed away, his family donated his dog Daisy to Retrieving Freedom, a nonprofit orga- nization that trains dogs to be placed in the homes of veterans, children with autism and people with diabetes. Daisy has since been matched with Bobby Henline, an American war hero and standup comic, who lives in San Antonio. Daisy accompanies Henline as he travels for speaking engagements and fundrais- ers. Henline stopped by VGM's headquarters in Waterloo, Iowa, recently to celebrate Daisy's graduation from training school. Tragedy struck for Henline in 2007, when a roadside bomb just north of Baghdad hit his Humvee; it was his fourth tour to Iraq with the U.S. Army. Henline was the only survivor of five men in the vehicle, but he was burned over 38% of his body. After 47 surgeries, he was encouraged by his OT to try standup comedy and his show "Well-Done Comedian" was born. Company's B2B sales channel, where revenues grew 84.2%, was the the star of its Q1 earnings By Liz Beau L ieu, e ditor GOLETA, Calif. – Are Inogen's contin- ued strong earnings a sign that HME providers are finally adopt- ing portable oxygen concentra- tors in larger numbers? Yes, says CEO Scott Wilkinson, but don't get too carried away. "I think this transition will be a process, not an event," he told investors during an earnings call on May 10 that was cut short due to technical difficulties. "I know By Liz Beau L ieu, e ditor ELYRIA, Ohio – Invacare is reduc- ing its workforce by another 50 associates in North America, the company announced in a May 24 press release. I n v a c a r e says the lay- offs, which a c o m p a - n y o f f i c i a l describes as "cross func- tional," are part of larger efforts to be more efficient. " R e a l i g n i n g o u r i n f r a - structure, paced by avail- able resources and cash, is an essential part of our becom- ing a more sustainably profit- able, growing business," said Matt Monaghan, chairman, president and CEO, in a press release. Invacare expects the lay- offs to generate an incremen- By Jeff Rowe, Contributing w riter I N t HE modern global econo- my, it's nearly impossible when you're young to know where you're going to end up work- ing someday. But if you're Hans Rudolph's son, or grandsons, or great-grandson, you might have a pretty good idea. In the early 1930s, Hans Rudolph designed and built his first respira- tory valves for use in p u l m o n a r y f u n c t i o n studies. In 1960, he and his son, John, formed Hans R u d o l p h , Inc., and while Hans died in 1994 at the age of 90, his son is still at it, as are his grandsons, Kelly and Kevin, and his great-grand- son, Nick. According to Kelly Rudolph, the company's current president, he and his brother grew up work- ing in their grandfather's shop and, after getting some experi- ence out in the business world, they came back to work at the family business in their mid-20s. As Kelly sees it, what sets a family business apart is that "many customers worldwide really like and trust the product and relationship better when dealing with a family business, but more importantly being a family business allows us to control our product quality and service and make changes faster and easier" when they get feed- back from customers on any of we get a lot of questions about, do you think we're at the hockey stick, or is this the tipping point? I'm not sure there is such a point. I think it's a process where you're going to see a curve that continues to grow." Inogen reported total revenues of $52.5 million for the first quar- ter of 2017, an increase of 22% over the same period last year. It reported a net income of $5.9 million, a 135.3% increase. Inogen's domestic business- to-business sales channel, where revenues grew 84.2% in the first quarter of 2017 compared to the first quarter of 2016, was the star of the company's earnings report. Within that channel, traditional HME provider and private label sales accounted for more than half of the growth, another sign of the changing mindset among HME providers. "I think it's fair to say at this point we have a little bit more time under our belt, here, as far as HMEs trialing, experimenting, and trying to understand more how POCs fit into their business- es in this phase of reimbursement decline," Wilkinson said. "We're seeing pretty steady progress in those trials, in that transition." tal $2.7 million in annualized pre-tax savings, on top of $9.2 million in savings from other actions it has taken since Octo- ber 2016. As a result of the lay- offs, Invacare expects to incur restructuring charges of about $700,000 on a pre-tax basis that will be expensed in the second quarter of 2017. Earlier this year, in late Jan- uary, Invacare announced* it was reducing its workforce by about 100 associates, a move that it expected to generate about $6.6 million annually in pre-tax savings. At that time, a company spokeswoman told HME News the company still employed about 4,600 associ- ates globally. Last year, in November, Invacare said it "right-sized"* certain parts of its North America/HME business in line with shifts in staffing needs, a move that it expected to save about $2.6 million annually, M. Monaghan S. Wilkinson Kelly Rudolph I N O G E N ' S p O C S e e n e x T p A G e L AYO f f S AT I V C S e e n e x T p A G e R U D O L P h FA M I ly S e e n e x T p A G e

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