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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Vendors hme news / july 2017 / www.hmenews.com 21 Sunrise, VGM, Permobil make changes; Drive notes honor PEOPLE NEWS LENEXA, Kan. – Mediware Information Systems has finalized an agreement to buy Kinnser Software, a provider of software solutions to 4,000 home health, hospice and private duty home care professionals, the company announced May 30. t he acquisition allows Mediware to expand its portfolio in the home health and hospice space, creating an integrated, high-growth software provider for the alternate care mar- ket, according to a press release. "Kinnser's intuitive platform provides Mediware with additional depth, expertise and capabilities to strengthen our platform in the home health and hospice space," said t homas Mann, CEO of Mediware, in the release. " t his transaction marks our next step as we continue to expand our offering as the leading, integrated supplier of software solu- tions for alternate care providers." Mediware is purchasing Kinnser from Insight Venture Partners, a global private equity and venture capital firm based in New York City. Insight invests in growth-stage f RESNO, Calif. – t homas Rossnagel has resigned as president and CEO of Sunrise Medical, the manufacturer announced today. Johan Ek, chairman of the board of directors, has taken over as acting CEO, according to a press release. "After 20 years of service at Sunrise Medical, I would like to spend more time with my family," said Rossnagel, who held the role since 2009. "For that reason, I have asked our owners, Nordic Capital, to find a new CEO for Sunrise Medical." Dougl A s mo V es into new P osition A t V gm WATERLOO, Iowa – VGM & Associates has named Craig Douglas to the newly cre- ated position of vice president of payer and member rela- tions. Douglas will be tasked with navi- gating payer relation- ships and address- ing concerns that are impacting VGM members. Douglas previously ser ved as vice president of payer relations for VGM's Homelink division, where he was responsible for provider onboarding; oversight of net- work adequacy for the payer partners and patients for whom care was coordi- nated; and building and fostering effec- tive, goal-driven relationships with pay- ers and providers. m ick joins Pe R mobil LEBANON, Tenn. – Permobil has tapped WB Mick as its new general manager of the t iLite Business Unit Manual. Mick, who will start June 12, previously worked as Numotion's vice president of business development. Larry Jackson, president of Permobil's Business Region Ameri- cas, will remain involved as president of the business unit, according to a press release. l ew AR ski electe D to R es P i RA to R y bo ARD PORT WAS h INGTON, N.Y. – Joe Lewarski has been elected to the board of directors of the American Respiratory Care Founda- tion. Lewarski, vice president of global respiratory and sleep for Drive DeVilbiss Healthcare, is a regis- tered respiratory ther- apist and fellow of the American Association for Respiratory Care. He has also served multiple terms on the AAHomecare board of directors and he was awarded the association's Homecare Champion Award in 2011. Lewarski was also award- ed the Invacare Award for Excellence in Home Respiratory Care by the ARCF in 2001. hme Mediware, Philips punch up market presence technology, software and Internet businesses. t PG, which backed the deal, bought* Mediware earlier this year. "As experienced investors in software and healthcare, we have witnessed the role that innovation can play in advancing the indus- try's infrastructure," said Nehal Raj and Jeff Rhodes, partners at t PG, in the release. "Alternate care providers are continuing to see growth in patient volumes and are rely- ing on technology as a low-cost and efficient management solution. We partnered with Mediware because we saw a compelling opportunity to invest in a high-quality soft- ware provider that will continue to benefit from these trends. Kinnser fits well within this vision, and broadens our end-market breadth within alternate care settings." Mediware has made a string* of acquisi- tions in the past few years, including Defini- tive Homecare Solutions and its CPR+ plat- form; Fastrack; and CareCentric's software solutions for the homecare market, includ- ing MestaMed. Phili P s buys m A ke R o F R es P i RA to R y V est AMSTERDAM – Royal Philips has signed an agreement to acquire Respiratory t echnolo- gies, the maker of an airway clearance solu- tion for patients with chronic respiratory conditions, like COPD and cystic fibrosis. Philips says the expansion of its respiratory care portfolio with Respir t ech's vest will fur- ther strengthen its solutions to manage care in the hospital and at home. "As healthcare continues to transform to a value-based care model, Philips is strengthening its respira- tory care portfolio to enable its home care and hospital partners to better serve the care network," the company stated in a press release. Respir t ech's portfolio also includes a robust clinical support program for man- aging respiratory patients in the home. t he St. Paul, Minn.-based company was founded in 2004 and employs about 210 employ- ees. Philips expects to complete the deal, announced May 22, in the coming months. It will not disclose financial details. hme but it did not specify a reduction in its workforce. Invacare also reduced its workforce in 2015, when the company laid off 30 asso- ciates, 20 at its North Ridgeville campus in Elyria; and in 2014, when it laid off 190 associates, 60 at the North Ridgeville campus. While there have been a number of lay- offs, Invacare has also added associates in sales, R&D, engineering and quality control, says Lara Mahoney, vice presi- dent of investor relations and corporate communications. "We need to make investments in cer- tain skills, but at the same time, while sales are coming down, we need to make sure the infrastructure is realigned as part of that," she said. "It's all about how can we simplify the business, reduce cost, reduce inefficiencies and make the company eas- ier to do business with. We've seen oppor- tunities to change the way we do things on a cross functional basis." Since 2012, Invacare has been under a consent decree with the U.S. Food and Drug Administration that has limited its ability to make and sell certain products from its corporate headquarters and t aylor Street manufacturing facility. t he compa- ny announced recently that the FDA has now approved three certification reports from its third-party auditor and it is now waiting for the agency to re-inspect its facilities. t he decree, along with Monaghan tak- ing the reins* at the company in 2015, has resulted in the company making several moves to specialize its product portfolio, jettisoning more consumer-type products and prioritizing more custom products. "Our transformation emphasizes qual- ity, patient-centric solutions, stream- lined customer engagements and reduced costs," Monaghan said in the release. "We remain focused on improving profitabil- ity and managing cash flow to support the extended transformation of future sales growth." hme their products. t he advantages of a family business, Rudolph said, are that "we control our own destiny, while working for ourselves and determining what are the priorities with all phases of designing, prototyping, manufac- turing, marketing and selling." While many things have changed over the generations, one thing that hasn't, Rudolph says, is the need to stay focused. "We're just continually trying to work harder, faster, and smarter than the previous generation," he said. hme CONSENT DECREE C O n T I n U e D F R O M p A G e 1 LAYO ff S AT I v C C O n T I n U e D F R O M p R e V I O U S p A G e INOGEN ' S POC C O n T I n U e D F R O M p R e V I O U S p A G e RUDOLP h f AMILY C O n T I n U e D F R O M p R e V I O U S p A G e last year. For its North America/HME busi- ness segment—the segment hardest hit by the decree—Invacare reported $119.5 mil- lion in net sales for the first quarter, a 2.1% decrease. Already this year, Invacare has launched, among other products, the Swiss Kuschall manual wheelchairs in the United States, bringing a new line of lightweight high-per- formance wheelchairs to the market. Next up: a new generation of t DX power wheelchairs. " t he t DX SP2, which has been available in Europe, will launch in North America with our new LiNX wirelessly program- mable power wheelchair control sys- tem," Monaghan said. " t his product will be a great asset for our power wheelchair portfolio." It's technology like LiNX that will help Invacare woo back providers who have, in many cases, looked elsewhere due to Invacare's limited abilities to make and sell certain products from its corporate head- quarters and t aylor Street facilities under the decree. " t his new LiNX system is really unbe- lievable," Monaghan said. "It's kind of like going from a flip phone to a smartphone, in terms of incremental features and ben- efits. So our strategy is to make sure that our providers know what the features are and they get familiar with (them) as the prod- ucts come out. (And) we've got to be market competitive on price." t he last step in lifting the consent decree is a re-inspection by the FDA, a process that Monaghan says will begin this month. When asked by an analyst how long a previous re- inspection took, after the FDA approved a second certification report, Monaghan said five months. "In 2015, the FDA was in the facility evaluating records for approximately five months," he said. "I don't know if that's exactly a benchmark. ( t his re-inspection has) a bigger scope. But the FDA is familiar with the scope through a third-party report. So it could be longer; it could be shorter. It's difficult to predict." hme Another data point showing the accelera- tion of POC adoption: Medicare paid Inogen about $6.2 million for POCs (E1392) in 2015, $5.6 million in 2014 and $4.3 million in 2013, according to the HME Databank. For Inogen's direct-to-consumer channel, sales also grew in the first quarter, 27.8%. t he company expects to give this channel a boost later this year and into 2018 as it ramps up its inside sales team, including at a proposed new facility in Ohio. "We added new inside sales representa- tives in the first quarter of 2017 and we are pleased with our team's success," Wilkinson said. "We are planning to hire additional sales employees throughout 2017 as this is still our strongest bottleneck to growth in direct-to- consumer sales." Looking ahead, Inogen maintains its 2017 revenue guidance of $233 million to $239 million, representing year-over-year growth of 14.9% to 17.8%. It is increasing its full year net income and adjusted net income guidance to $22 million to $24 million, representing 7.2% to 17% growth. "As HME providers adopt portable oxygen concentrators this could change our histori- cal sales seasonality," said Ali Bauerlein, CFO. "Given these changes, we expect our stron- gest sales in the third and fourth quarter in 2017 in contrast to our historical pattern of the second quarter being the strongest." hme Craig Douglas Joe Lewarski

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