HME News

SEP 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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Providers Providers fear manufacturers will cut them out . . . . . . . . 11 Owens Medical perseveres in face of wildfires . . . . . . . . 11 Upstate HomeCare embraces e-commerce . . . . . . . . . . . 11 Q&A: Dan Starck on impact of bid program . . . . . . . . . . . 11 ■ CMS needs to adjust payment rates while it retools bid program, says provider Gary Sheehan. See story page 1. Briefs Homecare Medical Supply joins Respiratory Services of Western New York AUBURN, N.Y., and BUFFALO, N.Y. – Homecare Medical Supply in Auburn, N.Y., has become a branch of Respiratory Services of West- ern New York in Buffalo, N.Y., according to the Olean Times Herald. Homecare Medical Supply will retain its name and location, and the son of the founders, Joe Manning, and granddaughter, Cynthia Manning, will con- tinue to manage the store, the newspaper reported. Respiratory Services of Western New York is a full-service provider of home respiratory and medical equipment and sup- plies with four additional branches in the Buffalo and Rochester areas. "We are very excited to add this great location to our growing family of stores," said Michael Mc- Cartney, owner and CEO of Respiratory Ser- vices of Western New York. DME Express acquires Advanced Therapeutics BATON ROUGE, La. – DME Express, which pro- vides DME to hospice and nursing facilities, has acquired Maryland-based Advanced Therapeutics, bringing its patient popula- tion to more than 10,000 throughout Louisi- ana, Mississippi, Arkansas, Texas, Alabama, Maryland, Virginia, The District of Columbia and Hawaii. "This transaction will enable us to continue our strategy of new market ex- pansion by acquiring high quality regional operations in fragmented markets ripe for consolidation, where DME Express can pro- vide superior service, lower costs and higher quality equipment to customers," said Mark Borneleit, DME Express CEO. It's the com- pany's fourth add-on acquisition since part- nering with Waypoint Capital Partners. Rick's Medical Supply buys Douglas Medical ROSEBURG, Ore. – Rick's Medical Supply has acquired Douglas Medical Equipment Sup- ply, according to local news reports. The DMES location here will continue to operate, and will also serve as the new home for the Scrubs and More Store, a division of Rick's that specializes in surgical scrubs and re- lated supplies. Rick's also plans to open a new retail store in North Bend in September. Rick's Medical Supply got its start in 1974 and offers a full line of DME, including oxy- gen, CPAP, beds, wheelchairs and medical supplies. People news: CHME Foster City, Calif.-based CHME has added Susan Wong as vice president of finance. Wong, who has 20 years of "pro- gressive" experience leading the finan- cial and accounting efforts of small- and mid-sized companies, started working at the company on Aug. 6. She specializes in technology and health care, and com- panies that are evolving. At CHME, Wong will be responsible for assisting with the execution of CHME's business plan for market growth. WWW . HMENEWS . C o M / SEPTEM b ER 2018 / HME NEWS 11 By Theresa Flaher T y, Managing e ditor H ME provid E rs fear p hilips' recent decision to step into the direct-to- consumer space for cash-paying cus- tomers for po Cs is a "gateway drug" to other product categories. " i don't want our manufacturing and ven- dor partners to become our competitors," said Josh Marx, managing director of sleep and vice president of business development for Cleveland-based Medical s ervice Company. "At this point, it's the po C going retail, but i think there's a larger blue ocean out there to capitalize on if they choose to." By Theresa Flaher T y, Managing e ditor H o ME oxyg E n therapy has been hit especially hard by competitive bidding, so CM s 's plans to retool its program are encouraging, says d an s tarck, chairman of the Council for Qual- ity r espiratory Care. " i t's good to see the administra- tion listening to the industry and working with the industry," he said. " o ur goal now is to get it finalized and make sure we have a sustainable long-term process avail- able to us." The CQ r C is a coalition of lead- ing home oxygen provider and manufacturing companies: Apria Healthcare, Lincare, r otech, Aero- Care, p referred Homecare, p hilips, r esMed and Life Care s olutions. s tarck, who is also CE o of Apria, spoke with HME n ews recently about the impact of the bidding program on providers and beneficiaries. HME N E ws: Do you think oxygen has been hit harder by competitive bidding than other product categories? Dan Starck: i believe so. There's still a fair amount of cost associated with providing and servicing oxygen equipment. i t's pretty tough to do it at the rates that are out there. AAHomecare has released a study that says (the number of providers has decreased) from 10,000 to 6,000 since 2014. That's a significant reduction that has been pretty impactful. HME: Where are all the oxygen patients going? By T. Flaher T y, Managing e ditor CLINTON, N.Y. – Upstate HomeC- are is taking its C p A p business online, thanks to a new part- nership with Health s qyre, an e-commerce marketplace for C p A p equipment and sup- plies. The provider, which also offers d ME, respiratory, phar- macy and infusion services, is now Health s qyre's preferred provider of C p A p machines, supplies and accessories in n ew y ork state. "C p A p is a large part of our respiratory business and we want to reach more customers in a way that is scalable," said g regory Lo p resti, senior vice president and CE o . "Health- s qyre fits that bill. They know how to do e-commerce. We know the space and the prod- Providers' DTC fears mount p hilips s leep and r espiratory Care has revamped its consumer-focused website, www.C opd, to feature a locator tool that allows insurance customers to find local HME providers that carry the s imply g o and s imply g o Mini po Cs, and cash customers to buy directly from the manufacturer online. But providers say they want those cash sales, as well. "Every time you turn around there's another cash opportunity being taken away from providers," said g ene s ego, president of Titusville, Fla.-based s ego's Home Medi- cal Equipment. "We're always concerned that (manufacturers) are going to cut us out altogether." While providers acknowledge that isn't likely to happen any time soon, it's hard to ignore the trends in that direction. i nogen has served as both a manufacturer and provider for several years. " i was buying from i nogen when they first came on the scene," said s ego. " i woke up real late one night and saw an i nogen com- mercial for my area. i stopped buying from them that day." But because p hilips is one of the largest manufacturers of a more broad range of respi- ratory products, providers won't be so quick to pull the plug on the company, they say. "My referral guys are big r espironics fans, so my hands are a bit tied," said Jason Jones, president of Troy, Ala.-based Jones Medical s upply. " r ight now, i can't rock that boat, but i would absolutely weigh my options if it became a direct threat." HME uct. This puts us in touch with a much larger market share then we would have just in our own geography." Case in point: Upstate H o m e C a r e recently sold a travel C p A p device to a U. s . a i r m a n s t a - tioned in s outh Korea. What makes partnering with the d enver- based Health s qyre especially attractive for Upstate HomeC- are: The marketplace allows customers to compare product pricing using their insurance information to decide whether it makes more sense to use that insurance—which gets billed through Upstate—or pay cash, Upstate HomeCare goes e-commerce 'Patients aren't getting prescribed oxygen' 'We're concerned (manufacturers) are going to cut us out altogether' squeezed out? U p S TAT E s e e pa g e 1 2 d A N s ta r c k s e e pa g e 1 2 By Theresa Flaher T y, Managing e ditor RE dd ING, Calif. – i t has been all hands on deck for employees of o wens Healthcare ever since devastating wildfires began scorching the region in July. "We cleared our schedule to make sure we had everyone available to help and go out into the field to make sure patients were o K," said s hane r yan, manager of o wens Healthcare's r edding location. " o ur closest branch location brought us quite a few po Cs that we dispensed immediately to people, then we Wildfires don't stop patient care circled back to patients and got them set up with home units, equipment and supplies." The Carr Fire, which started near r edding, has burned nearly 270 square miles, killing six peo- ple and destroying 1,000 homes. i t was only 47% contained at press time. " o ur immediate town is out of danger, but it's moved into more rural areas with difficult terrain," said Tammy Miller, operations manager. " i t's our neighboring towns and communities that are the worry now." w I L d F I R E S s e e pa g e 1 2 T HE Carr Fir E near Redding, Calif . , has burned nearly 270 square miles and destroyed 1,000 homes . Greg LoPresti Dan Starck CREDIT : k EVIN MARTINE z

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