HME News

DEC 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 12 of 24

Providers ■ There's no room for error in today's M&A market, says AeroCare Holdings CEO Steve Griggs. See story this page. Aeroflow seeks to grow through acquisitions . . . . . . . . . 12 Barbara Smith named 2017 HME Woman of the Year 12 Q&A: Homecare Champion Gary Sheehan . . . . . . . . . . . . 12 Norco expands Washington state footprint . . . . . . . . . . . 13 Briefs Lobbying: Peaks and Plains Medical, Aeroflow More than 20 people representing HME companies and organizations from across the Pacific Northwest and Big Sky regions attended an event held at Peaks and Plains Medical in Spokane Valley, Wash., in October where the guest of honor was Rep. Cathy McMorris Rod- gers, R-Wash., according to VGM. Mc- Morris Rodgers introduced a bill Nov. 2 that would provide relief from the com- petitive bidding program in non-bid ar- eas. She has also recently spearheaded a letter to the Office of Management and Budget, asking them to clear an interim final rule under their review that would provide relief from the bid program… Aeroflow Healthcare met with Rep. Mark Meadows, R-N.C., to discuss top- ics related to health care and their im- pact on the state. Aeroflow's executive team and the company's Mom and Baby division met with Meadows to continue previous discussions about the impor- tance of small businesses and the role of breastfeeding in parenting. Meadows briefed Aeroflow on the current state of health care in Congress, including the re- cent healthcare-related executive order from President Donald Trump. Nonprofit launches virtual DME expo NEWPORT BEACH, Calif. – CureDuchenne has launched a new resource called the CureDuchenne Virtual Durable Medical Equipment Expo, according to Muscular Dystrophy News. The expo is an interac- tive online resource that allows caregivers and family members to access information about equipment from the comfort of their own homes. The website offers "exhibit halls" with information about products, as well as a chat room to help caregivers and family members navigate the challenges of dealing with different devices and equip- ment at various stages of the disease. The expo was developed with the help of funds from a 2016 STRIVE Award provided by PTC Therapeutics. The STRIVE program recognizes the role patient advocacy groups play in improving the lives of Duch- enne patients and their caregivers. Provider consolidates inventory under one roof ASHEVILLE, N.C. – Aeroflow Healthcare has purchased a new building and fulfillment facility in Asheville, N.C., in a move that the company says is a reflection of its con- tinued growth and increased productivity. The new 35,000-square-foot facility will consolidate product inventories currently housed in two separate locations in Ashe- ville, resulting in increased efficiency and improved rates of delivery, according to a press release. Aeroflow will employ about 30 procurement, distribution and clinical services employees at the facility when it opens this fall, with plans to add about 50 employees by the end of 2018. 12 h ME NE ws / DE c EM b E r 2017 / www.h MENE M By Theresa Flaher T y, Managing e ditor ASHEVILLE, N.C. – What began as a way to expand nationally through subcon- tracting relationships in the competitive bidding program has turned into a full- blown acquisition strategy for Aeroflow Healthcare. This year alone, t h e c o m p a n y h a s closed nine deals, says Andrew Amoth, strategic partner- ships coordinator. Amoth spoke with HME News recent- ly about Aeroflow's growth strategy and why the provider uses multiple lenses to view potential acquisitions. s hifti N g LAND sc APE By Theresa Flaher T y, Managing e ditor ATLANTA – When it comes to acquiring an HME company, buyers need to kick the tires so to speak, said M&A analyst Brad Smith at Medtrade in October "It's like a used car," said Smith, manag- ing director at Vertess during the session, "Deal or No Deal: Buying and Selling a DME Supplier." "Are you going to want to spend time shining it up? Any buyer wants a return on investment." With margins thinner than ever, and a number of providers looking to exit the increasingly difficult HME market, buyers need to ensure sellers have their financials in order, says Steve Griggs, CEO of Aero- Care Holdings, which has acquired mul- tiple companies in 2017. "There's no room for error," he said. "You need to have a more secure deal than the past. It's harder today to fix mistakes. Every purchaser is looking for a good, healthy company." The two most common types of acquisi- tions at present: financial, where the buyer By l iz Beaulieu, e ditor H ME pr OVIDE r Barbara Smith says she's usu- ally the one giving out awards, not receiving them, so when she was named the 2017 HME Woman of the Year at Medtrade in October, she was, needless to say, surprised. "I had no expectation of win- ning," said Smith, the CEO of Healthline Medical Equipment in Wichita Falls, Texas, where, over the past 25 years, she has worked her way up from sales By Tracy Orzel, c ontributing Writer G A r Y S HEEHAN , presi- d e n t a n d C E O o f S a n d w i c h , M a s s . - based Cape Medical Supply, received the 2017 Van Miller Homecare Champion Award at AAHomecare's Stand Up for Homecare event at Medtrade in October. He spoke with HME News about the impor- tance of taking ownership in the name of advocacy. HME N E ws: You've been lob- bying for 10 years now . Why is it important to take the time to meet with lawmakers? Gary Sheehan: That's a part of my job; that's a part of leader- ship; that's a part of owner- ship. I never view that as an option. If you're laying people off—as some people are—how to do you look your employ- ee in the face and tell them In difficult industry, deals need to be secure market watch wants to keep the owner on, and recapi- talize and restructure the company; and strategic, where the buyer is looking for a specific growth niche. Griggs bills himself as a strategic buyer. "We are looking for something special," he said. "Maybe you are in a territory we want to expand to or in a line of products that intrigues u s , s o m e t h i n g t h a t piques our interest as a company." For an HME owner looking to sell, the best time to sell is when you are on top—not when you are ready to throw up your hands in exasperation, says Smith. To make yourself attractive to buy- ers play up your expertise and your No. 1 asset: your employees. "Employees make all the difference," he said. "Then, show growth. A great way to show that is with a business plan: Here is our thesis, how we are going to get there, and here's where we want to be." HME Aeroflow looks for strategic acquisitions rep to partner. "Being among the four finalists was incred- ible enough for me." Here's what Smith, also recently named president of TX ME p , a new state HME associa- tion, had to say about what has been the lonely job of being a woman in the male-dominated HME industry. HME N E ws: When you accept- ed your award at Medtrade, you said there were few women at the event years ago, but that has changed . you've done everything you can do if you're not taking those steps? HME: Speaking of difficult times, where do you see the HME industry headed? Sheehan: Consolidation is likely to continue. I think you're going to continue to see larger and more sophis- ticated oper- a t o r s w h o marry service and technol- ogy in a way t h a t a l l o w s them to grow a lot larger in a way that is not onerous- ly expensive from an opera- tional standpoint. HME: Your parents started Cape Medical Supply in 1977 . Was taking over the business a choice or a destiny? Sheehan: It was definitely a choice. I worked here in the summer growing up, but I never thought this would be a career for me. I came back Woman of the Year embodies focus, fire Homecare Champion on 'doing the right thing' 'How do you look your employees in the face and tell them you've done everything you can do if you're not taking those steps?' A E R O f L O W s e e n e x t pa g e S m I T H s e e n e x t pa g e S H E E H A N s e e n e x t pa g e Andrew Amoth Brad Smith Gary Sheehan Bar B ara sM it H , 2017 HME Woman of the Year: "There are a lot of women I admire in this industry," said Smith, CEO of Healthline Medical Equipment in Witchita Falls, Texas .

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