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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■ Bob Gilligan, formerly of GE Industrial Solutions, has been named Drive DeVilbiss' new CEO, replacing Harvey Diamond. See brief below. 3B Medical sets stage for big year . . . . . . . . . . . . . . . . . . . 1 Q&A: Gabriel Romero of Stealth Products . . . . . . . . . . . . . 1 Earnings: Inogen, Invacare . . . . . . . . . . . . . . . . . . . . . . . . . 20 M&A: Amerisource, Compass, Permobil . . . . . . . . . . . . . . 21 Vendors 20 hme news / january 2018 / www.hmenews.com Briefs Invacare lays off 110 ELYRIA, Ohio – Invacare will reduce its work- force by about 110 employees to generate $8.5 million in pre-tax savings. The move, which affects employees in North America, is part of a multi-year strategic plan to trans- forms Invacare into a more clinically focused company, says Matthew Monaghan, chair- man, president and CEO. "This reduction in force, while difficult, is an essential part of the second phase of our transformation to- ward becoming a more sustainably profitable business," he said. "We are realigning our North America infrastructure with our new sales levels and finding more efficient ways to do business." This latest round of lay-offs comes less than a year after the company announced in January that it would reduce its workforce by about 100 employees. Gilligan replaces Diamond as ceo of Drive DeVilbiss PORT WASHINGTON, N.Y. – Drive DeVilbiss Health- care has named Bob Gilligan, former CEO of GE Industrial Solutions, as its new CEO. Gilligan replaces Harvey Diamond, who has assumed the role of vice chairman. In his new role, Diamond will serve as senior adviser to the company and as a "voice to customers, vendors and investors," according to a press release. He will also continue to serve as a member of the company's board of directors. Gilligan successfully led the transformation of GE Industrial Solutions into a $3.6 billion global business. F&P wins patent case AUCKLAND, New Zealand – The English Patents Court has sided with Fisher & Paykel Health- care, saying a ResMed patent for masks is invalid in the U.K. "While today's ruling is just one more step on the journey, it reinforces our confidence in our position," said Lewis Gradon, managing director and CEO. In 2016, F&P sought a declaration from the High Court of Justice, Chancery Division, Patents Court in the U.K. that three of ResMed's Eu- ropean patents were invalid in the U.K. and should be revoked. ResMed counterclaimed for infringement, but just before the trial was set to start, the company revoked two patents, leaving only one before the court. ResMed responded to the ruling, saying it was pleased by the court's "unambigu- ous statement regarding our assertion that Fisher & Paykel's Simplus and Eson masks infringe ResMed's patent" and pointing out the court's statement that, "Had it been valid it would have been infringed." ResMed says it is considering an appeal. s hort takes: Butler, Braun Butler Mobility Products held a ribbon cut- ting ceremony and open house to celebrate its 60th anniversary at its new corporate headquarters on Dec. 13...The board of di- rectors of BraunAbility has selected Staci Kroon as the company's new president and CEO. She will also serve as the board's direc- tor. The announcement follows the retirement of Nick Gutwein, who has led BraunAbility since 2008. AUDIT SOFTWARE HELPS TO IDENTIFY POSSIBLE PROBLEMS Inogen's streak continues in Q3 Marathon man Royal Philips has launched a "global movement" to raise awareness for COPD ahead of World COPD Day on Nov. 15. Philips is collaborating with marathoner Russell Winwood, who has COPD, to create motivational content designed to help educate, engage and empower COPD patients and their caregivers. The company is working with Winwood to share his personal journey with other COPD patients to inspire them to live their lives to the fullest. Six months after his diagnosis, he completed his first full Ironman and continues to partici- pate in triathlons around the world, showing that a COPD diagnosis does not need to stop patients from enjoying their favorite activities. Philips has also committed to donating $1 to The COPD Foundation for every campaign video share throughout November, which is COPD Awareness Month. earnings season Potential consequences of audits include loss in payment, prepayment reviews and provider number revocations, any of which, Justin Ferreira says, 'can be a complete death sentence for a provider' I N O G E N e A R N S S e e N e x T PA g e By Liz Beau L ieu, e ditor GOLETA, Calif. – Despite headwinds from a new CRM system, Ino- gen's direct-to-consumer chan- nel still recorded an impres- sive 43.5% increase in sales for the third quarter of 2017. "There has been a learn- i n g c u r v e and in spite of that, pro- ductivity in Q3 improved ver- sus 2016," CFO Ali Bauerlein, told investors during a confer- ence call on Nov. 7 to discuss the company's latest financial results. "So we're really proud of our sales team's ability to hire and train personnel." Inogen reported total rev- enues of $69 million for the By Liz Beau L ieu, e ditor ELYRIA, Ohio – Company officials at Invacare are looking for good news where they can find it. For the third quarter of 2017, it's the sequential growth in net sales for North America/Home Medical Equipment. Invacare reported net sales of $79.5 million for the busi- ness unit for the third quarter vs. $77.7 million for the second quarter, a 2.3% increase. " We w e r e thinking we would have a flat third and fourth quar- ter—a couple of quarters to reflect a flat bot- tom to rebound—and we had a little bit better third quarter than we expected," Matt Monaghan, By Jeff Rowe, Contributing w riter FORT LAUDERDALE, Fla. – It's no secret that audits, and all the administrative complexities that accompany them, have been the bane of the HME industry for years. But a recent- ly formed partnership between HME stakeholders aims to change that. Dubbed RxCloud9, LLC, the partnership between HME busi- ness owners and a HME billing software developer is poised to release a software package that aims to simplify—and, more importantly, clarify—the audit process. "The value in this product is understanding the consequenc- es of failing an audit and/or not IVC emphasizes smaller picture third quarter, up 26.8% from the same period last year. Sales reve- nue was $63.1 million, up 33.8%; and rental revenue was $5.9 mil- lion, down 18.7%. It reported net income of $7.3 million, up 39.9%. With company officials calling 2017 "an investment year," Ino- gen may be just getting started. "While we're starting to see contributions, we expect the people we hire in the second half of this year to contribute more materially in 2018," Bau- erlein said. That's a big reason why, for 2018, Inogen expects revenues to be in the $295 million to $305 million range. By comparison, for 2017, the company expects rev- enues of $239 million to $243 million. Asked whether Inogen's prod- uct pipeline includes a POC chairman, president and CEO, told investors during a confer- ence call on Nov. 8 to discuss the company's latest financial results. Year-over-year, however, net sales for North America/HME were $79.5 million for the third quarter of 2017 vs. $99.3 mil- lion for the same quarter in 2016, a 19.9% decrease. Monaghan cautioned inves- tors not to look at the sequen- tial growth in net sales for North America/HME, the busi- ness unit most impacted by a consent decree that limited manufacturing at the Taylor Street facility from late 2012 to mid-2017, as the beginning of a "V-shaped recovery." appealing an audit," said Justin Ferreira, a principal in the part- nership. Some of those potential con- sequences include loss in pay- ment, prepayment reviews and provider number revocations, any of which, Ferreira said, "can be a complete death sen- tence for a provider." As Ferreira explained it, RxCloud9 simplifies the audit process by organizing where you are and what is needed to get your audit packaged for a successful submission. Wheth- er it's an initial response to an audit or an ALJ appeal, it man- ages the process the same way. "Besides audit and task management," he added, "the M . Monaghan S . Wilkinson I N v A C A R E e A R N S S e e N e x T PA g e R x C L O U D 9 S e e N e x T PA g e Company reduces workforce by about 110 See brief at right

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