HME News

JAN 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 14 of 24

Mobility Briefs Industry loses rehab icon EXETER, Pa. – Mark Smith, the general manager for public relations and consumer research for Quantum Rehab and Pride Mobility Products, passed away on Nov. 25 surrounded by his family. Smith, who was born with cerebral palsy and used a wheelchair, supplied input on various projects and provided consumer feedback to the research and development team for the two companies. He joined Pride and Quantum in 2001. Smith was also a prolific writer, authoring five books and countless magazine articles and col- umns. Additionally, he was known for his blog Smith is survived by his wife, Holly, and daughters, Emily and Annabelle. Numotion buys Carr Rehab BRENTWOOD, Tenn. – Numotion has expand- ed its footprint in Tennessee with the ac- quisition of Carr Rehab. Carr Rehab has been serving East Tennessee for more than 27 years from locations in Knoxville and Johnson City. Twenty five employees from Carr Rehab have transitioned to Numotion. They include: ATPs, and customer care, service and repair, payer relations, medi- cal documentation and order processing professionals. "The Carr Rehab team has a solid reputation for providing quality equipment, along with a real passion for their customers," said Mike Swinford, CEO of Numotion. "We are excited to add this experienced group of professionals to the Numotion team." BraunAbility buys regional dealer SAN DIEGO – BraunAbility has acquired Ability Center, a regional dealer of wheelchair ac- cessible vehicles with 14 locations across California, Arizona, Nevada and Oregon. "Ability Center has been my life's work, and this partnership ensure we are well-posi- tioned to grow and, most importantly, con- tinue to provide an outstanding level of care and service to our customers," said Darrell Heath, founder and chairman. BraunAbility is a global manufacturer of wheelchair accessi- ble vehicles and wheelchair lifts. It is a wholly owned subsidiary to Patricia Industries, a di- vision of Investor AB Group. NSM taps Lowman as supply officer NASHVILLE, Tenn. – Darren Lowman has been named chief supply chain officer at National Seating & Mobility. He will be responsible for sourcing and vendor management, purchas- ing, distribution, inventory management and indirect procurement. Previously, he worked as director of strategic sourcing at Tractor Supply Co., a $7 billion retailer with more than 1,700 locations. While there, he led the development and execution of a worldwide sourcing strategy. ■ NSM has named Darren Lowman chief supply chain officer. See brief below. 14 h M e N ew S / j AN u AR y 2019 / www.h M e N ew S . C o M Accessories make cut in House bill. . . . . . . . . . . . . . . . . . . 1 Reliable Medical Supply gets investment . . . . . . . . . . . . . 14 Providers react to AWP provision . . . . . . . . . . . . . . . . . . . 14 Mobility Solutions opens new office in LA . . . . . . . . . . . . 15 Reliable positions for growth Su S an Blanton INVESTOR 'ENERGIZES' NUMOTION R E L I A B L E m e d i c a l s e e n e x t pa g e Beyond science By Liz Beau L ieu, e ditor BROOKLYN PARK, Minn. – Reliable Medical Supply has grown organically to four locations in Minnesota, but with an out- s i d e i n v e s - tor now on board, it has set its sights on expand- ing through a c q u i s i t i o n i n t o n e w geographical markets. The first area of focus for the company, whose top product categories are complex rehab and vents: buying another com- pany that will allow it to better By Liz Beau L ieu, editor M edica R e' S any will- ing provider provi- sion, set to go into effect Jan. 1, 2019, could m e a n s o m e s m a l l s t r a t e - gic shifts for complex rehab providers. a number of those provid- ers say they will seek new business under the provision, but only on a limited basis. "We do plan to accept Medi- care Group 2 PM d orders after Jan. 1, but (only) in clin- ics where we already get refer- rals," said d oug Westerdahl, president and ce O of Mon- roe Wheelchair in Rochester, n . y . "We have no plans to sell any other competitive bidding By Liz Beau L ieu, e ditor ATLANTA – i t's not unusu- al for OTs and PTs to go through their undergradu- ate education with little to no exposure to liberal arts and humanities. That's a problem, says Sarah Blan- ton, the editor-in-chief of the Journal of Humanities in Rehabilitation, a free, peer-reviewed online jour- nal "to raise the conscious- ness and deepen the intel- lect of the humanistic rela- tionship in the rehabilita- tion sciences." Here's what Blanton, also an assistant professor in the d ivision of Physical Therapy at e mory University School of Medicine, had to say about how OT and PT is more than just science, especially when it comes to people with disabilities. But, 'we want to stay localized and not get so crazy big that we lose sight of what we're doing' thing and walk away. A recapi- talization gives them the ability to sell 80% or 60% or whatever percentage they want, take the money and invest it elsewhere, but still have a seat at the table. Really, still be at the head of the table, running the business. Second, the owner gets a 'sec- ond bite at the apple,' mean- ing when the company sells again in five years, the owner will receive another payout for their minority equity. Typically, this payout is as big as the first exit." What's a recap, anyway? HME News asked Bradley Smith, a managing director and partner at Vertess, to explain: "Instead of buying a whole company, like a strategic investor would, a recapitaliza- tion typically involves a legacy owner holding on to a minor- ity percent of the stock in the company, referred to as 'rolling equity.' This has two benefits. First, most owners have the majority of their net worth wrapped up in that one company and they don't want to sell the whole serve patients in western Wis- consin. "There are patient access issues out there," said d ebra Kalk, president and ce O. "There are no suppliers serv- ing that area, especially on the vent side. To give those patients access and two-hour response times and 24/7 on-call servic- es, we need to be strategically closer." i n late n ovember, Reliable Medical Supply announced a recapitalization of its equity by Seven Hills c apital, a c hi- cago-based "operator-centric" private equity firm. R e l i a b l e M e d i c a l S u p - ply is now on the hunt for a Debra Kalk AWP & CRT: Providers to serve referrals more broadly products." c MS plans to keep the pro- vision in place for two years, while it makes significant changes to its competitive bidding program. Provider James Rogers also plans to use the provision to serve referral sources in a broader way. " i t allows us to service some of our referral sources that we've not been able to service in the past," said Rogers, ce O of Phoenix Rehab & Mobility in c hattanooga, Tenn. Providers, however, don't anticipate a windfall. While any Medicare-enrolled pro- vider will be able to supply bid items under the provision, they'll have to do it at rates that have been driven down by subsequent rounds of the program. "We're looking at it as an opportunity, but we we're not looking at it as a source of profit," Rogers said. " i t'll be more of a loss leader." O t h e r p r o v i d e r s w h o stopped or limited the amount of standard mobility products they offered when the bid pro- gram launched in 2011 don't feel particularly motivated to jump back into the product category. "They got it out of their system, so they're shying away from it, even with the provision," said Martin Szmal, owner/president of The Mobil- ity c onsultants. hme By Liz Beau L ieu, e ditor NASHVILLE, Tenn. – n umotion has a new private equity owner and, soon, it will have a more diverse board of directors, both to better position the company for accel- erated growth. n umotion announced in n ovember that it had been acquired by an affiliate of aea i nvestors LP. Using the firm's connections, the company plans to now build out its board with more indepen- dent directors. "These will be individuals who can bring some perspec- tive and expe- r i e n c e f ro m all different a s p e c t s o f health care and the regulatory world," said Mike Swinford, ce O. " i t will be transformative, in terms of what the industry and we can do to better serve end users." Under previous owners LLR Partners and a udax Private e quity, n umotion's board com- prised Bob Gouy, who owned United Seating and Mobil- ity, which merged with a TG Rehab to become n umotion in 2013; Howard Ross and Brian Radic of LLR Partners, which will stay onboard as a minority investor; Keith Palumbo and Joe Mike Swinford Susan Blanton N u M O T I O N s e e n e x t pa g e S u S A N b l a n t o n s e e n e x t pa g e Mark Smith

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