HME News

OCT 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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Page 16 of 32

Providers 16 / october 2018 / hme news By Theresa Flaher T y, Managing e ditor as HEVILLE, N.C. – Aeroflow Healthcare has added Connecticut to its footprint, with its recent acquisition of the CPAP and resupply busi- ness of Med-Caire in Vernon. Aeroflow will now serve resupply patients in that state, as well as the Carolinas. "We are very attracted to Connecticut's higher reimbursement rates," said Andrew Amoth, corporate development manager. "There's a healthy mix of strong reimburse- ments from all payers in the state compared to other states. This is a great opportunity to enter that market." Aeroflow will fold the CPAP and resup- ply business into its own business, but it has entered into a service agreement with Med- Caire for its employees to continue to set up CPAP machines for customers, says Amoth. The service agreement is similar to others Aeroflow has entered into with a handful of sellers over the past few years as the company Aeroflow Healthcare expands to Northeast continues to grow through acquisitions. "We've built a sales and marketing machine that we are very confident in and the goal is to add more patients, increase revenues and achieve new economies of scale," he said. While Aeroflow was founded in 2001 as a home oxygen provider for Medicare ben- eficiaries in the Southeast, the company has been making acquisitions to grow its commer- cial, Medicaid and managed care footprints, as well as other lines of business, including urological, incontinence and ostomy supplies. CPAP is a particularly attractive market, says Amoth. "We feel that the number of undiagnosed obstructive sleep apnea patients is far greater than the number of diagnosed patients," he said. "The greatest barrier there is, physicians educating and testing their patients. If sleep growth starts to level off, it's because the doc- tors have stopped doing their part. It's a very strong area for our business and a lot of other businesses." hme take a cautious look," he said. "The pri- vate equity world really likes the demo- graphics of the HME space. They like the long-term prospects." Smith agrees all these factors are at least raising the eyebrows of possible new entrants into the market. "Cautiously, yes, there could be more people getting in," he said. "There are always people looking at it from the out- side. It's a great market when you look at the baby boomers." On the flip side, for providers that may have been on the fence about exiting the business, the proposed changes offer some breathing space, says Don Davis. "For those companies that did have a lot of Medicare business that were possi- bly contemplating selling after the next round, I do think it allows for decisions to be made now, rather than waiting around to find out what happens," said Davis, president of Duckridge Advisors. "I think if you are looking to sell, you're still looking to sell, and if you are not, then you are more complacent." hme a N a LY sts C O N t I N u E d f r O M p A g E 1 4 The rural rollout also whacked reim- bursement hard for Carolina's HME, says Andrew Trammell, president of the Char- lotte, N.C.-based provider. "Inc. looks at revenue numbers over a three-year period," he said. "We are selling a lot more but at significantly lower reim- bursement. Therefore, the unit growth is somewhat meaningless to Inc., so I did not even submit numbers." Cape Medical Supply, in Sandwich, Mass., has made a hard turn away from Medicare in recent years, but that hasn't stopped the competitive bidding program from having an impact on revenues, despite an increase in business, says CEO Gary Sheehan. "We didn't submit to Inc.," he said. "For us, it was Medicare rates washing across other payers—growth on patient volume remains enormous, but that just keeps rev- enues flat-ish." So, did any providers make this year's list? Yes, at least one: Charlotte, N.C.-based Portable Oxygen Solutions, at No. 1055. The online provider of POCs, which launched in 2013, had revenues of $3.2 million in 2017; its three-year growth rate was 467%. hme INC . 5000 LI st C O N t I N u E d f r O M p A g E 1 4 medtrade booth 1517 medtrade booth 1827 Stand Up f Hece Stand Up f Hece October 16 | 5:30-7:00 PM October 16 | 5:30-7:00 PM October 16 | 5:30-7:00 PM SkyLounge, The Glenn Hotel, Atlanta SkyLounge, The Glenn Hotel, Atlanta SkyLounge, The Glenn Hotel, Atlanta Tickets available at the door! Tickets available at the door! Tickets available at the door! Gold Sponsors: Diamond Sponsors: Media Supporters: The Leading Business Magazine for HME Professionals Silver Sponsor: Stand Up f Hece Stand Up f Hece Stand Up f Hece Stand Up f Hece Thank you for Supporting Thank you for Supporting Thank you for Supporting Thank you for Supporting Visit us at Visit us at Visit us at booth #1827 booth #1827 booth #1827

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