HME News

MAR 2018

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 22 www.h M e N M / MA rch 2018 / h M e N ews By Liz Beau L ieu, e ditor SAN DIEGO – Tax reform recently passed by Con- gress has "liberated our global cash assets to be able to be invested without artificial con- straints," ResMed CEO Mick Farrell said dur- ing a Jan. 22 conference call. Farrell said the company will now be free to invest in three new ways in the United States: 1.) grow its manufacturing footprint; 2.) grow its research and development capabilities; and 3.) build its intellectual property assets. "The changes will be positive for ResMed from a financial and treasury management perspective," said Brett Sandercock, CEO of ResMed. "We will now have far more flexibil- ity to repatriate cash back to the U.S. at little or no tax cost. We will be able to more effec- tively utilize our strong global cash flows to invest in growth opportunities and undertake capital management activities." ResMed noted in its financial earnings for the second quarter that the one-time tran- sition tax on unremitted foreign earnings results in additional income tax expense of $119.9 million, $10.5 million recorded as income taxes payable and $109.4 million recorded as long-term income taxes payable. The company also noted the lower corporate tax rate results in a reduction of net deferred tax assets and an increase in income tax expense of $6.7 million. hme ResMed highlights 'positive' tax changes KI MOBILITY C o N T i N u E d f R o M p A g E 2 1 Stealth decided to sell the custom seating business due to reductions in reimbursement and increases in production costs, but it's still committed to the complex rehab market, as a whole, with a wide range of positioning prod- ucts for the whole body, alternative controls and a new cushion line set to launch in Feb- ruary. "The plan is to refocus on developing inno- vative solutions for positioning issues," said Lorenzo Romero, president. "That's what we have built our reputation on, so that's what we're focusing on. There are many, many things we're still offering as a company, minus this one particular line." hme another product out in 2019," he said. The key to SoClean's success to date is marketing, Wilkins says. The company has successfully sold its device not only through HME providers but also directly to consumers through TV, radio, newspaper and online advertising. "We got to a certain point with the channel that there wasn't growth there anymore," he said. "It wasn't until we started spending well over a $1 million each month on advertising that we increased customer awareness and saw explosive growth." Despite providers being on high alert for vendors going direct-to-consumer, SoClean, much like Inogen, has found a way to make both businesses work, Wilkins says. "Providers like the product because it's a cash sale, and we're promoting sales for them," he said. "Their customers are ask- ing them, 'I saw this online; should I use this,' and they're saying, 'Yes, and we can sell it to you.' It creates a conversation that wasn't there before." hme has leveraged pay-per-click advertising to spread the word. "We monitor our web traffic daily," Campbell says, "and pay-per-click has worked quite well for us." While the number of providers looking to rent vents is increasing, Campbell says the overall number of providers doing business in this product category has sta- bilized, and he's fine with that. "There were people who looked to add vents to save their business, and they dove in and shouldn't have," he said. "The people who are in the space now, belong there." hme Periodicals postage paid at Yarmouth, ME and additional mailing office. HME News (ISSN 10913823) is published monthly by United Publications, Inc., 106 Lafayette St., PO Box 998, Yarmouth, ME 04096; 207-846-0600. Publisher assumes no responsibility for unsolicited material or prices quoted in the magazine. Contributors are responsible for proprietary classified information. ©2018 by United Publications. All rights reserved. Reproduction, in whole or in part, without written permission of the publisher is expressly prohibited. Reprints may be obtained from The YGS Group at 717-505-9701, ext. 100. Back issues, when available, cost $7 each within the past 12 months, $12 each prior to the past 12 months. Back issue orders must be paid in advance either by check or charged to American Express, Visa, or Master Card. HME News is distributed without charge in North America to qualified home medical equipment providers. Paid print subscriptions to those not qualified cost $65 annually to the U.S. and Canada and $150 to all other countries. All payments must be made in U.S. funds drawn on a U.S. bank. For subscriber services, including subscription information, please call 800-869-6882. POSTMASTER: Send address changes to HME News, PO Box 1888, Cedar Rapids, IA 52406-1888. TRA c E MEDI c AL C o N T i N u E d f R o M p A g E 2 1 SO c LEAN C o N T i N u E d f R o M p A g E 2 1 RESMED EARNS C o N T i N u E d f R o M p A g E 2 1 $233.4 million, an 8% increase. Set to increase patient awareness further in 2018: SleepScore Labs, a joint venture between ResMed, Dr. Mehmet Oz and Pegasus Capital Advisors, has announced an exclusive retail distribution partnership with Williams Sonoma to offer the Robin Sleep System, which combines the Sleep- Score Max non-contact sleep monitor with the Robin mattress. "For ResMed, this partnership provides a pathway to inform the 50 million to 70 million Americans who suffocate every night but do not yet know that they need to seek diagnosis and treatment for their sleep apnea," said Mick Farrell, CEO of ResMed. In addition to patients, awareness of sleep therapy's ability to improve health and reduce costs is also increasing among payers. Case in point: France began dif- ferentiating reimbursement for telemoni- tored and non-telemonitored CPAP devic- es on Jan. 1. "It's fantastic to see a country like France looking at the space and saying there is an ROI here to invest in telemonitored sleep devices," Farrell said. hme Robert Wilkins Ty Bello, president and founder of Team@ Work, will participate on a panel that will give turn-by-turn directions on how provid- ers can improve their organization's health, leadership and overall business culture. hme News: What is the "new normal" for sales in the HME industry right now? Ty Bello: The "new normal" addresses how we approach the medical community to gain referrals or business, and also how we conduct our sales calls. hme : Why must sales be one of the three pillars of success? Bello: Sales is the beginning of the revenue cycle, and we must continue to drive our sales efforts with solid metrics and a con- sistent cadence. hme : You're also presenting on motivating sales personnel in a down economy. What are your tips? Bello: Whether we have an up or down Ty Bello president and founder, Team@Work Tuesday, m arch 27, 2018 10:15 am to 11:45 am Session: "HME the New Normal" Contact: 260-627-8938, ty@teamworkcoaching. com TY BELLO C o N T i N u E d f R o M p A g E 2 0 economy, sales people need to be motivat- ed and engaged. HME providers need to have solid metrics and a consistent cadence for their sales team, and while this feeds enthusiasm, especially when the numbers are up, we need to be consistently charg- ing our sales team members to drive and push harder. hme : If attendees take away one thing from this session, what should it be? Bello: A balance of marketing, sales, and revenue cycle will ensure your business not only survives but also thrives in the new normal. hme med T rade boo T h 703 May 23 - 24, 2018 Washington, DC Washington Legislative Conference Walk the halls of Congress with your colleagues and let legislators know how your company and the patients you serve are being affected by reimbursement cuts. Join us at the Washington Legislative Conference to advocate for sustainable reimbursement and sensible regulations, and build strong relationships on Capitol Hill. Never underestimate the power of a face to face conversation. Your story will make a difference. Issue Education Capitol Hill Appointments Industry Connections Your attendance strengthens HME's voice on Capitol Hill!

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