HME News

APR 2013

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 28 of 32

28 Vendors / April 2013 / hme news Invacare sets stage for turnaround By Liz BeauLieu, editor ELYRIA, Ohio – Invacare offcials hope they have put "one of the most challenging years in the company's history" behind them. President and CEO Gerry Blouch said during an earnings call Feb. 8 that the company expects to complete two audits related to an agreement with the Food and Drug Administration (FDA) in the frst quarter Need Power? Think GlobTek Smart Battery Chargers Offer Three-Phase Operation Available in versions delivering 4.2V, 8.4V, or 12.6V at 1 A to address single- or multiple-battery configurations, the GTM91128 families of smart Li-Ion battery chargers from GlobTek offer three charging methods: conditioning, constant current, and constant voltage. The universalinput devices have a minimum current charge termination technique with timer as back up, with LED indication of charging and fully charged states. An additional feature of the smart battery charger family is that they have ...for more click MedicallyApproved Open-Frame Switchers Deliver Up to 240W Suitable for use in a variety of medical, ITE, and PoE applications, the GTM91110P240 Family of openframe AC/DC switchmode power supplies from GlobTek deliver up to 240W in a 3 x 5inch footprint. The devices are provided in factory-configured outputs from 12 to 55 V (in 0.1-V increments). Available in Class I or II versions, the 1.75-high power supplies are 85% efficient at full load and include features such as active PFC, a built-in EMI filter, and a 12-V fan output as well as DC-input versions from 130VDC to 380VDC. "Our switchers are versatile power supplies; you can use them in just about any indoor applica- ...for more click Rechargeable Battery Pack Provides Fuel Gauge Data Providing smart rechargeable power capability to advanced portable and remote devices, the BL3100C1865004S1PSQA Li-Ion Battery Pack from GlobTek incorporates fuel-gauge functionality to provide important power status information. The 14.4V pack has a 3.1Ah capacity and includes a built-in protection circuit as well. "You can no longer put a battery in one of today's products without providing a means to check on the power status, as device operating life is a critical aspect of a device's performance." of 2013, and a third audit in the second quarter of this year. After completing the second audit, Invacare may resume design activities, which paves the way for the company to introduce new products, resume globalization efforts and, ultimately, deliver on its longterm goals of $100 million in cost improvements and high single-digit operating margins, Blouch said. In 2012, the uncertainty surrounding Invacare's ability to continue manufacturing operations under the agreement and the lack of new products resulted in a loss of market share and gross margin pressure in the North America/HME segment, Blouch said. The numbers For the fourth quarter of 2012, net sales for North America/HME were $165.8 million, an 8.8% decrease compared to the same period in 2011. Net loss was $1.8 StAndARdS conti nue d f ro m pag e 2 7 States by Invacare, for one, will comply with the amendment before the new standard is fnalized, company offcials say. "We've made the decision to have a common product globally," said Nancy Smoot, product development manager, respiratory care, at Invacare. Because the requirements in the amendment don't prevent fires from happening in the frst place, AirSep has also published white papers and created public service announcement ads to educate patients on the dangers of smoking while using oxygen. "We have a turn off, take off and leave campaign that's similar to stop, drop million, excluding restructuring charges of $2 million and intangible impairment charges of $100,000, versus net earnings of $15 million. For 2012, net sales for HME were $693.3 million, a 7.2% decrease compared to 2011. Net earnings were $7.9 million, excluding restricting charges of $4.2 million and intangible impairment charges of $100,000, versus $48.7 million. Company-wide, for the fourth quarter of 2012, net sales from continuing operations were $360.4 million, a 3.7% decrease compared to the same period in 2011. Net loss was $10.8 million vs. $39.7 million. Because Invacare sold Invacare Supply Group (ISG) to AssuraMed in a deal that closed in January (see related story), the results for the fourth quarter and the year include the results of ISG as a discontinued operation. and roll," said Bob Jacobsen, vice president of sales and marketing for AirSep. "If patients are going to smoke, we want them to turn off their oxygen, take off their cannula and leave the room." Even though it looks like the amendment will stick, manufacturers still question whether the requirement for oxygen concentrators will do much to reduce rates of patient injury. Jacobsen cites a National Fire Protection Association study from 2008 that found burns on the face—where a patient wears a nasal cannula—account for 89% of all thermal burns. "This requirement has been used in the U.K. since 2006, and their incidence of fre and injury has more than doubled what is talked about in the U.S.," he said. HME The Meeting Place for HME Jobs and People AnoTher wild cArd Now that CMS has made offers as part of Round 2 of competitive bidding, Invacare expects some providers to get off the sidelines and start making product purchases again, Blouch said "There was uncertainty," he said. "The smart businesspeople—they were reluctant to load up. Now at least they know who's in the game or out of the game." But with the payment amounts attached to those contracts, on average, 45% below the current fee schedule, Invacare expects continued consolidation in the provider base, Blouch said. "We saw consolidation in the double digits (in Round 1)," he said. "Having said that, it's still a fractured market." Blouch downplayed any impact competitive bidding will have on its pricing (if providers expect reduced pricing on products to help them, they're "toast," he said) and credit losses. "We did the fre drill in Round 1 and skated through without any credit losses of signifcance," he said. HME fEEL pAIn c on t in ue d f ro m pa g e 2 7 Pa.-based organization. "We want them to continue in their business and succeed." Because providers must report to them when they, for example, merge with another company, accreditors have a clear window into what changes providers are making. "The vast majority of providers are hanging in there and evaluating what they need to do to stay in the industry," Canally said. With the industry on the doorsteps of Round 2, accrediting organizations say providers want to know how they're supposed to meet all of the quality standards on half the reimbursement. "There's a lot more anger this time," Nicholas said. "Our approach has been, 'Let's look at the value you can put in your organization by becoming more effcient.'" HME Spring Sale! 25% Off COUPON CODE: SPRING13 EXP. 4/30/13 a single job listing! 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