HME News

FEB 2019

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 ■ Prism Healthcare in December played host to two state lawmakers. See photo this page. Paragon Ventures marks 25 years . . . . . . . . . . . . . . . . . . . 12 ATS report finds 02 patients worse off . . . . . . . . . . . . . . . 12 Reporter's notebook: Year in Review . . . . . . . . . . . . . . . . 12 Moneyline: HomeHealthWares, Aeroflow . . . . . . . . . . . . . 13 Briefs Protech makes pair of buys CINCINNATI – Protech Home Medical has acquired Riverside Medical and Central Oxygen, it announced Dec. 17. Riverside Medical, which focuses on home respirato- ry services in Tennessee and northern Mis- sissippi, is Protech's first entry into Tennes- see. Central Oxygen, which also focuses on home respiratory, is located in Indiana. Under the terms of the definitive purchase agreements, Protech acquired Riverside Medical and Central Oxygen for total con- sideration of about $871,000, which in- cludes assumed debt and about 1.1 million common shares issued at a deemed price of $0.14 per share. The securities issued are subject to a four-month hold period. Rotech leverages MetTel to double patient outreach NEW YORK and ORLANDO, Fla. – MetTel and Ro- tech Healthcare have deployed more than 700 customized Samsung tablets to field technicians, eliminating manual log sheets and generating increased scheduling effi- ciency and productivity, the two companies have announced. The techs also have the ability to be more flexible in adjusting their schedules based on new patient or delivery data. "Prior to our engagement with MetTel, we faced a number of challenges: paper- based processes, problematic legacy sys- tems, inefficient back-end operations, lack of interoperability and delayed payments," said CIO Mesha Sookdeo. "Now we are in the process of digitally transforming all as- pects of our front-end and back-office op- erations, which has served as a force multi- plier for our business. We have been able to more than double the patients we see each day." Rotech is in the process of digitally standardizing processes across the board and integrating security measures to protect patient data. Short takes: AeroCare, Delta Medical Orlando, Fla.-based AeroCare, a private equity backed provider of home respira- tory therapy products and services, is gearing up for a sale process, according to Buyouts Insider. Triple Tree has been engaged to advise the provider, Buyouts reports, citing three sources. AeroCare, led by former Rotech president Steve Griggs, has been a major consolidator in the HME industry since forming in 2003...Delta Medical has opened a branch in Harri- son, Ark., according to the Harrison Daily Times. The company held a ribbon cutting ceremony at the branch with the Harrison Regional Chamber of Commerce on Dec. 18. The branch provides a variety of DME, plus an infusion pharmacy. Delta Medical was established in 2006, with the goal of serving patients in rural communities. It also has branches in Fayetteville (two branches), Batesville, Jonesboro, Rogers, Cave City, Fort Smith, Mountain Home and West Memphis. 12 h M e new S / feb R u AR y 2019 / www.h M enew S . C o M By Theresa Flaher T y, Managing e ditor NEWTOWN, Pa. – When Paragon Ventures launched in 1994, competitive bidding wasn't even on the horizon. Today, it is the biggest driver of change in the HME industry. Through it all, the Newtown, Pa.-based mergers and acquisitions adviser, which is in its 25th year, has remained committed to the industry, says Marc Rose, president and managing partner. "It feels good to have made it this far and still feel as energetic and as excited as we are," he said. "We are as passionate about our business now, as we were 25 years ago." Rose and Jonathan Sadock, managing partner and CEO, spoke with HME News recently about the industry and their role By Theresa Flaher T y, Managing e ditor S OMETIMES IT seems as though Ama- zon is taking over the planet and the HME world is no exception, as evi- denced by our list of the five most-read pro- vider stories of 2018. While Amazon has cast a distant shadow over HME for the past several years, it inched closer in 2018, according to the No. 1 most read story, "Amazon wants to disrupt health care, including DME, report says," which outlines the online retailer's possible points of entry into the healthcare market, includ- ing DME and pharmacy, as detailed in a study from L.E.K. Consulting. Although Amazon has obtained licenses to distribute medical supplies in most states, its strengths lie in logistics and distribution, says the report. What it is not known for is healthcare expertise and local customer ser- vice, something providers are banking on in the No. 3 most read story, "HME vs. Amazon: Providers help out—for a fee." Gone are the days when HME providers will assemble a mobility scooter free of charge. These days, enterprising providers are charging for those services—and people are willing to pay up, they say. Paragon Ventures: 25 years of being 'eyes and ears' of providers NEW YORK – A new report pub- lished in the December Annals of the American Thoracic Soci- ety highlights the problems many patients with lung dis- ease experience in getting and using supplemental oxygen. In "Optimizing Home Oxy- gen Therapy: An Official American Thoracic Society Workshop Report," 26 physi- cians, nurses, RTs, patients and patient advocacy groups, oxy- gen suppliers, and CMS and FDA officials detail the short- comings of the current system of providing supplemental oxy- gen to 1.5 million adults living in the United states. "The panel was unanimous in its finding that delivery of home oxygen services has worsened since the onset of CMS's competitive bidding program nearly a decade ago," a press release states. T h e w o r k s h o p a u t h o r s reviewed available scientific oxygen studies and the results of a 2017 survey of nearly 2,000 supplemental oxygen users conducted by the ATS Nursing Assembly. They found: 4 Half of respondents report- ed problems with their oxygen; 4 70% of all respondents reported they had no more than four hours of portable oxygen, yet 81% reported they wanted more than five hours; 4 Patients who have been hospitalized or gone to the ER in the last year were more likely as the "eyes and ears" for providers. HME N E ws: What do you like most about what you do? Jonathan Sadock: We get to see the inside of a lot of incredible businesses— some really wonderful and some with issues that have made it through to the next level. We've also seen some that have had to close as the result of a variety of issues, not the least of which is competitive bidding. HME: Do you find that you have to manage the expec- tations of business owners looking to sell? Marc Rose: Just because a business owner has a reason to sell, that doesn't necessarily mean they are in a position to do so. A lot of the 'We are bullish and excited about the prospects on the near horizon' says Marc Rose 2018: Old foes and new markets reporter's notebook Oxygen patients are worse off, report concludes Local pols Prism Healthcare in December hosted two Democratic Illinois state lawmakers, Sen. Laura Murphy and Rep. Michelle Mussman, at its Schaumberg location. The visit came about when the local Chamber of Commerce asked how it could assist them. "I brought up pain points related to the MCOs here in the state cutting rates as much as 50%," said Neidi Mack, vice president of ancillary services. "I told him we'd love to get some local politicians here (to discuss the impact)." Pictured: Clinical Nutrition Manager Melissa Donahoe discusses enteral nutrition with Sen. Murphy. PA R A g O N S e e N e x T P a g e Y E A R I N R e v I e w S e e N e x T P a g e O x Y g E N R e P O R T S e e N e x T P a g e Marc Rose J. Sadock

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