WASHINGTON – AAHomecare is asking lawmakers for relief from a “double-dip” oxygen cut in the 2017 Medicare fee schedule for stationary oxygen.

The move reinforces a letter that the association sent to previous leadership at CMS in December, asking the agency to recalculate its rates, which have dipped below competitive bidding rates in rural and non-bid areas.

“We would like to reinforce these efforts by generating congressional interest and support on the issues, as well,” the association states.

AAHomecare is also engaging the new leadership at CMS and the Department of Health and Human Services.

The association is calling HME providers to action, asking them to contact their members of Congress to educate them about the issue and have them contact CMS.

AAHomecare argues that CMS has improperly reduced payments for E1390 by applying a regulation introduced in 2006—called the budget neutrality offset—that only should be applied to unadjusted fee schedules. The association says the 2017 fee schedule for stationary oxygen must be consistent with those based on regional single payment amounts from competitive bidding areas.

Legal action: Apria Healthcare, Lincare

LAKE FOREST, Calif. – A man from Santa Ana, Calif., has filed a class-action lawsuit against Apria Healthcare for allegedly contacting him without his permission regarding money he allegedly owed the provider. Frank Gutierrez filed a complaint on April 3 in the U.S. District Court for the Central District of California, alleging Apria violated the Telephone Consumer Protection Act. Between July 2015 and July 2016, Apria allegedly contacted Gutierrez on his cell phone to collect payment on an alleged outstanding debt, according to the lawsuit. Apria has been charged with allegedly failing to receive prior express consent to contact Gutierrez and using an automatic dialing system.

Former employee sues Lincare

Charles Hartwig, the former CIO for Lincare, has filed a wrongful termination lawsuit against the company, according to local news reports. Hartwig in November 2015 accepted Lincare’s employment offer, which included a base salary of $325,000 a year, a $50,000 signing bonus and relocation expenses to move his family from New Jersey to Florida, according to the lawsuit. Five months later, however, he was fired. Hartwigargues in the lawsuit that Lincare allegedly failed to pay all of his relocation expenses and that it must repay his signing bonus. Hartwig, who previously worked at Johnson & Johnson, says in his lawsuit that Lincare hired him, in part, for helping the company complete its acquisition of American Home Patient

Many sleep apps lacking in basic information

YARMOUTH, Maine – Apps for sleep apnea may not be going far enough to help users understand the importance of a good night’s sleep, researchers say. There are hundreds of apps available that use soothing sounds to help people fall asleep, but less than half of the apps researchers looked at offer information about sleep or its importance, according to the Voice of America. “We were surprised that some of the apps didn’t say anything about the recommended amount of sleep someone should get on a regular basis,” said Diana Grigsby-Toussaint, a kinesiology and community health professor at the University of Illinois, who led the new analysis with colleagues at the New York University School of Medicine.

Cardinal Health expands scope in home health care

DUBLIN, Ohio – Cardinal Health has entered into a definitive agreement to buy the patient care, deep vein thrombosis and nutritional inefficiency business of Medtronic for $6.1 billion in cash.

Total revenues for that business, which encompasses 23 product categories across multiple market settings, were $2.3 billion for the 12 months ending October 2016. More than 70% of total sales were in the U.S., according to a press release.

“Given the current trends in health care, including aging demographics and a focus on post-acute care, this industry-leading portfolio will help us further expand our scope in the operating room, in long-term care facilities and in home healthcare, reaching customers across the entire continuum of care,” said George Barrett, chairman and CEO of Cardinal Health, in the release.

Cardinal Health says the business is complementary to its medical consumables business and, once the transaction is complete, it will become part of its medical segment, which is led by Don Casey, that segment’s CEO.

Cardinal Health expects to finance the deal with a combination of $4.5 billion in new senior unsecured notes and existing cash. It expects to close the deal in the first quarter of its fiscal year 2018.

UPitt develops waterproof power wheelchair

PITTSBURGH – The University of Pittsburgh Human Engineering Research Laboratories (HERL) has designed, developed and constructed a patent-pending waterproof power wheelchair that runs entirely on compressed air. The PneuChair pneumatic wheelchair was unveiled this month at Morgan’s Wonderland, a 25-acre theme park in San Antonio that was built specifically for people with disabilities. Ten of the wheelchairs will be available for use at the venue’s new splash park, Morgan’s Inspiration Island, when it opens this spring. The wheelchair uses high-pressured air as an energy source instead of batteries and electronics. It weighs about 80 pounds and takes 10 minutes to charge, compared to eight hours for an electric mobility device. HERL, which is a joint effort between UPitt, the University of Pittsburgh Medical Center and the U.S. Department of Veterans Affairs, was already working on a prototype of the PneuChair when it was contacted by representatives from Sports Outdoor and Recreation (SOAR), which oversees Morgan’s Wonderland, to help develop a power wheelchair for the splash park.

Numotion buys Horn’s

BRENTWOOD, Tenn. – Numotion has acquired Horn’s Medical Supply in Athens, Texas, the company announced April 14. The acquisition allows Numotion to better serve customers in eastern Texas, it says. Horn’s has been in business for more than 20 years and serves thousands of customers, according to a press release. “Expanding our presence in East Texas brings more mobility options to those who need them most,” said Mike Swinford, CEO of Numotion. Numotion will continue to serve customers from the Horn’s location in Athens. Horn’s employees, including founders Jim and Jerry Horn, will support customer sales and care, and product service and repair. As part of Numotion, they will have access to a larger product offering and support infrastructure that will help increase efficiency, according to the release. Numotion now has locations in nearly every state and serves more 250,000 customers annually, it says.

Thelma Prial passes away

GOOSE CREEK, S.C. – The wife of Sheldon Prial, a long-time advocate of the HME industry, passed away on April 17. Thelma Prial is survived by her husband of 67 years, and her children and grandchildren. “Mom and Dad were truly inseparable in both their lives and their careers,” wrote Pam Stein and Jon Prial, their children. “From the pharmacies they ran to the home health care dealer co-operative they established, they made every decision as a team and they never disagreed on anything (according to Dad).” Sheldon Prial, who turns 90 on May 5, will be moving from their home in Goose Creak, S.C., to an assisted living facility in Summerville, S.C. He will continue to have access to email at shelly@prialfamily.net.

GAO studies challenges, opportunities surrounding remote patient monitoring

WASHINGTON – Concerns over payment and coverage restrictions are barriers to healthcare providers and patients using telehealth and remote patient monitoring to improve quality of care, according to a new study from the Government Accountability Office. An example of such a restriction, the GAO says: Medicare telehealth coverage limits the geographic and practice settings in which beneficiaries may receive these services. For the study, the GAO reviewed Medicare documents and regulations, and interviewed agency officials. It also selected nine general and medical specialty associations with expertise and interest in telehealth or remote patient monitoring, and interviewed representatives from each of those associations. The GAO also found that Medicare models, demonstrations and a new merit-based incentive payment system have the potential to expand the use of telehealth and remote patient monitoring. It notes that CMS supports eight models and demonstrations in which certain Medicare telehealth requirements have been waived, such as requirements for the locations and facility types where beneficiaries can receive telehealth services.

DME MACs move custom items to set allowables

WATERLOO, Iowa – Custom cushions and backs—codes E2609 and E2617—now have set allowables in jurisdictions B and C, VGM Group reports. Previously, the custom items were individually priced and were averaging about 70% of MSRP/supplier price. Now E2609 has a set price of $450 and E2617 $550, VGM reports. “We are hearing that the new established allowables will not even cover acquisition cost for any of the products that are coded as custom fabricated,” it stated in a bulletin to members. Stakeholders are also concerned with the way the DME MACs in the two jurisdictions made the change—internally and without notice to the provider community. “There are many issues that are unsettling with how this came about and all are being addressed with CMS and the DME MACs,” VGM stated. “All industry advocates are aware of these issues and are reaching out to get answers and request that this change be rescinded.” Jurisdictions A and D have not implemented the change, VGM says.

Rotech Healthcare buys Griffin Home Health Care

ORLANDO, Fla. – Rotech Healthcare has bought Griffin Home Health Care, which has locations in Charlotte, Concord and Gastonia, N.C. Bill Griffin opened Griffin Home Health Care in 1983. “Griffin Home Health Care has been a quality provider for years,” said Tim Pigg, CEO of Rotech, in a press release. “They have a broad range of services and we are pleased to be able to bring them into the Rotech family of locations.” Rotech currently operates in 18 markets in North Carolina. This appears to be Rotech’s first acquisition this year. It had a quiet 2016, after a busy 2015, when it bought a number of HME companies, including Alert Medical in Fort Myers and Naples, Fla., in July. Duckridge Advisors served as the exclusive M&A adviser to Griffin Home Health Care.

Philips says its Trilogy 100 saves big money

AMSTERDAM – Royal Philips says its new Trilogy 100 non-invasive ventilator can reduce hospital readmissions for COPD patients, compared to patients not using NIV or using less advanced NIV therapy, following discharge. As a result, both hospitals and payers can see a significant cost savings, Philips says. Among a study’s findings for hospitals: After examining 1,000 COPD patients being treated with a multifaceted therapy approach using the Trilogy versus no NIV treatment or less advanced NIV therapy devices, hospitals saved $1.6 million in the first 30 days and $1.8 million in 90 days. For payers, the study found: Payers studying admissions of 100,000 severe COPD patients found cumulative three-year savings of $326 million. The study was paid for by Philips.

VGM: Take impact survey

WATERLOO, Iowa – The VGM Group is asking HME providers who haven’t already done so to take its Supplier Impact Survey. The survey measures the impact of policies and reimbursement cuts implemented in 2016 on providers and patients. Since launching in late 2016, the survey has garnered more than 350 responses.

Short takes: BOC appoints new board members

The Board of Certification/Accreditation (BOC) has named Margy Imlay and Richard Todd to its board of directors. Imlay is owner and president of Just Like a Woman, a women’s health boutique in Portland, Oregon. She is also a consultant and instructor for OandPEdu, where she is the principal instructor for hands-on mastectomy fitter classes around the country. Todd is owner and managing partner of Collier Orthotics and Prosthetics, KneedABrace Inc. and Comfort Sleeves, with locations in Sacramento and Pleasant Hills, California. He has more than 30 years of experience in the orthopedic field.

WASHINGTON – A letter urging HHS Secretary Tom Price to use regulatory authority to provide bid relief in non-bid areas is now circulating in the United States Senate.

The letter, which is spearheaded by Sens. John Thune, R-S.D., and Heidi Heitkamp, D-N.D., and also addressed to CMS Administrator Seema Verma, states: “We are concerned that CMS did not fully consider the costs of providing DME in non-competitively bid areas or the length of time needed by providers to adjust to the change.”

A House letter, spearheaded by Reps. Cathy McMorris Rodgers, R-Wash., Dave Loebsack, D-Iowa, Lee Zeldin, R-N.Y., and Diana DeGette, D-Colo., collected 154 co-signers earlier this month. That letter also asked the secretary to permanently protect accessories for complex wheelchairs from bid-related reimbursement cuts and CMS on June 23 announced it would preserve reimbursement for accessories for Group 3 or higher complex rehab power wheelchairs.

“Providers are seeing a much more receptive HHS and CMS that are willing to listen to the concerns of providers and industry stakeholders,” said John Gallagher, vice president of government relations for The VGM Group, said in a bulletin. “This new dialogue has led to quick action with CRT, and now providers have to keep the wheels turning for DME.”

Providers are urged to contact their senators and ask them to sign the letter, which is available through the July 4 recess.

Lincare settles claims allegations

CLEARWATER, Fla. – Lincare has agreed to pay $20 million to settle allegations that it fraudulently billed for oxygen equipment and services.

The company admits no wrongdoing, according to news reports.

According to a whistleblower lawsuit, Lincare billed Medicare and other government health programs for unnecessary oxygen equipment and tanks, fabricated orders and improperly waived co-pays and deductibles.

The lawsuit also alleges Lincare paid kickbacks to physicians and their families by providing oxygen and supplies for free.

In court documents, Lincare said it followed regulations and blamed “garden variety” errors, according to an article on Reuters.com.

The lawsuit was originally filed as two separate suits in 2009 and 2010, by former employees SallyJo Robbins and Kathleen Dunlap in New York, and Germano Lima and Roberto Rabassa in Massachusetts. They will receive $6 million of the judgment; the government will receive $9 million.

In November 2016, a whistleblower lawsuit filed against Lincare by a former employee was dropped in response to a request by the employee, Rebecca Saiff. That lawsuit accused Lincare of, among other things: improperly billing Medicare for equipment that was not reimbursable, failing to provide services, and retaining overpayments to which it knew it was not entitled.

Liberty Medical looks to sell

PORT ST. LUCIE, Fla. – Mail-order supplier Liberty Medical may close on deal next month to sell the majority of its assets.

If the deal closes, the company will lay off 263 employees Aug. 27, according to a local news report. Among the affected positions: president, chief financial officer and director of human resources.

Liberty has undergone much turmoil over the past few years. In December 2012, a group of Liberty executives bought the company from its parent company, Express Scripts. Two months later, in February 2013, it filed for Chapter 11 bankruptcy. It cited a dispute with Express Scripts over tax liabilities and a significant recoupment by Medicare among its liabilities.

Liberty settled with Medicare in October 2014, paying $32 million. That same month, a bankruptcy judge approved a stalking horse bid for Liberty’s assets. It was acquired for $68.5 million by Palm Beach Capitol.

Invacare closes China factory

ELYRIA, Ohio – Invacare has closed its Suzhou, China manufacturing facility it announced June 26. The change is in line with the company’s strategic plan to leverage its infrastructure and improve efficiencies. The closure is expected to generate $4 million in pre-tax savings annually. “We are focused on having the right number of facilities in the right locations to better meet the needs of our customers,” said Matthew Monaghan, chairman, president and CEO in a release. Since taking the helm in 2015, Monaghan has worked to turn around the North America HME business. Since 2012, Invacare has been under a consent decree with the U.S. Food and Drug Administration that has limited its ability to make and sell certain products from its corporate headquarters and Taylor Street manufacturing facility. The company announced recently that the FDA has now approved three certification reports from its third-party auditor and it is now waiting for the agency to re-inspect its facilities.

Sunset Healthcare to distribute BellaMa products

WALNUT, Calif. – BellaMa, a manufacturer of breast pumps and breastfeeding accessories, has partnered with Sunset Healthcare Solutions to distribute its line of breast bumps to the home medical equipment market. Sunset is a manufacturer and distributor of CPAP, oxygen and other homecare products. “We have had great success adding value to the home healthcare industry through our dedication to service and providing quality medical supplies,” said Greg Wood, chief development officer for Sunset. “We look to expand on that with the addition of these high-quality breast pumps.” BellaMa will continue to serve the retail market through Amazon, Walmart, Sears and Bed Bath and Beyond.

Supreme Medical partners with IMCO

HOUSTON – Supreme Medical Fulfillment, wholesale distributor of DME and medical supplies, has partnered with IMCO Home Care, a national member service organization of HME providers, pharmacies, VNAs, hospice care and group homes, to offer its purchasing power to members. “IMCO Home Care members will be able to place orders that can be shipped directly to their patient’s front doorstep from our warehouse,” said Colton Mason, senior vice president of Supreme Medical, in a press release. Supreme Medical offers a full range of medical supplies, including ostomy, wound care, enteral nutrition, diabetes, respiratory therapy and DME. IMCO Home Care contracts with leading branded manufacturers and resource companies to deliver a robust product portfolio to members.

VGM Fulfillment, Brightree integrate technologies

WATERLOO, Iowa –VGM Fulfillment has partnered with Brightree to integrate technologies that will enable Brightree customers to automate the ordering process, enabling drop-shipping from VGM Fulfillment’s warehouse, according to a press release. “Automating the order process allows Brightree customers to push orders directly to us,” said Shalini Douglas, implementation manager for VGM Fulfillment. “It saves time and gets the orders delivered to patients faster and more efficiently. Our team is currently shipping nearly 6,000 orders per day while maintaining a fill rate of 99%.” VGM Fulfillment has been shipping CPAP supply orders directly to patients since 2009.

Active Body secures patent, seeks investors

ATLANTA – Active Body has received a patent for its wheelchair-rollator hybrid design, the startup announced June 27. The product concept features a robotic lift that allows a wheelchair user to transition to a standing position where waking is facilitated in a supportive frame. “Health benefits from continued ambulation are significant and well documented.,” said Charles Wike, president, in a release. “With the dramatic increase in the elderly population and the continued decline in the cost of robotic lift mechanisms, we believe that this concept will represent a significant market niche.” Active Body is seeking to license its technology to medical device manufacturers. For more information, visit: www.activebodyinc.com.

QS/1 names new leader

SPARTANBURG, S.C. –Saul Factor has been tapped as the new president of QS/1, it was announced today. Factor will take over for Tammy Devine who in May announced she would retire. Factor is a pharmacist who eventually moved into sales and brand management with PCA, Eli Lilly and RxAmerica, where he was charged with improving customer experience. During his tenure there as COO, the company’s revenues double to $1B. “Saul has a track record of success—he has built teams that have deployed both operational and commercial excellence programs focused on delivering a better customer experience while driving incremental shareholder value,” said Alan Turfe, CEO and Chairman of the Board at JM Smith Corporation, parent company of QS/1, in a press release.

Harmar recognized as ‘hero’

SARASOTA, Fla. – Harmar Mobility received the “Hero of Freedom Award” at the Wheelchairs 4 Kids Heroes Appreciation Lunch June 21. Harmar has supported Wheelchairs 4 Kids by significantly reducing the cost of providing vehicle wheelchair lifts and installation services, assisting with product expertise, sponsoring events and participating in fundraising. “Harmar was very touched to receive this recognition from Wheelchairs 4 Kids,” said David Baxter, vice president of marketing for Harmar, in a press release. “These kids, their families and the crew at Wheelchairs for Kids are the real ‘heroes’ and we hope our little part helps them enjoy life just a little bit more.”

Patient engagement ‘crux’ of COPD management

YARMOUTH, Maine – COPD patients are more likely to be active and participate in pulmonary rehab if they have social support, according to a report published in the Annals of the American Thoracic Society. Researchers looked at the association between healthy behaviors and two kinds of social support: structural, the type of social network a person has such as being married or living with a partner or caregiver, and functional, the support a person perceives his/her social network provides. They found that participants who: lived with others took 903 more steps each day; had a spouse or partners were 11 times more likely to participate in rehab; and were more likely to receive a pneumococcal vaccine and slightly less likely to smoke. “Patient engagement in self-care is the crux of COPD management,” said senior study author Huong Q. Nguyen, PhD, RN, a research scientist at Kaiser Permanente Southern California and an affiliate associate professor at the University of Washington. “Our goal with this study was to identify factors associated with self-care activities, including physical activity, quitting smoking, participating in a pulmonary rehabilitation program, adherence to medications, and getting influenza and pneumococcal vaccinations.”

Brightree plans summit

ATLANTA – Brightree will host another Brightree Summit at Medtrade in Atlanta. The one-day summit takes place Oct. 23, from 8 a.m. to 5 p.m. followed by a networking event from 5:30 to 7:30 at the Omni Hotel. The event features three educational tracks (training, executive and operations), and will include providers who are using Brightree successfully. “Brightree customers will share their expertise and reveal their best practices in how to maximize results and be profitable,” said Mark Blount, vice president of marketing for Brightree. Medtrade takes place Oct. 23–25 at the Georgia World Congress Center. Show organizers in May announced they would shorten the show by one day. 

People: United Spinal, InfuSystem, CHAP

Lisa Wells has been named to United Spinal Association’s Board of Directors. Wells, vice president of market at Cure Medical, has more than 20 years of experience in public relations and marketing communications for medical device, medical supply and health technology companies and has created two social media communities for wheelchairs users…Darrell Montgomery and Christopher Sansone have been elected to InfuSystem’s Board of Directors. Montgomery has nearly 30 years experience in operational management, technology sales and consulting experience. Sansone has extensive investment experience as both a managing partner and founder of an investment partnership…Barbara McCann, current chairwoman, has been appointed as interim president and CEO of Community Health Accreditation Partner (CHAP). She replaces Karen Collishaw, who has announced her resignation as CEO after a three-year tenure.

INDIANAPOLIS – It began shedding business segments three years ago and now Home Health Depot has sold what’s left to Clearwater, Fla.-based Lincare, according to the Indiana Business Journal.

Nathan Feltman, a majority owner of Home Health Depot, along with business partner and friend David Hartley, told the journal that it became apparent a few years ago that it would be increasingly difficult to remain profitable as a smaller diversified company in the current market due to declining Medicare and Medicaid reimbursement rates.

Feltman told the journal that he expects companies like Lincare and Lake Forest, Calif.-based Apria Healthcare to dominate the market going forward because of their size. Lincare is part of the Linde Group, a Germany-based multinational corporation that had revenues of $10.8 billion in 2016.

At its peak, Home Health Depot had 260 employees working across five divisions in six states and revenues of $32 million, according to the journal.

Feltman and Hartley will work with Lincare on the transition over the next year, then pursue other opportunities. They had 40% stakes in Home Health Depot at the time of sale, with two other investors each with 10% stakes, the journal reported.

Home Health Depot sold its complex rehab business to National Seating & Mobility in 2014 and its home access business in 2016. The company sold its hospice business to National HME earlier this year. Both NSM and National HME are private-equity backed by Court Square Partners and Tailwind Capital Group, respectively.

INDIANAPOLIS – With the economy humming and private equity money flowing, Home Health Depot’s Nate Feltman says the time was right to sell the last of the company’s business to Clearwater, Fla.-based Lincare.

Previously, Home Health Depot sold its complex rehab and home access businesses to National Seating & Mobility in 2014 and 2016, and its hospice business to National HME/Hospice Cloud earlier this year. NSM and National HME are both backed by PE firms.

“We timed our sales around a lot of different factors, but right now, we’re in a very good market to sell,” said Feltman, president and CEO, and a co-owner of the company with David Hartley. “Two years from now, I’m not sure it will be that same market.”

Hartley bought Home Health Depot in 2004 for $85,000. A former manufacturer sales rep for companies like TiLite, he initially focused on building a complex rehab book of business, but after bringing Feltman on board in 2010, the company diversified into respiratory and other product lines.

Together, Hartley and Feltman, who each owned 40% of the business at the time of the sale to Lincare, grew Home Health Depot into a regional presence by 2014, with 260 employees in 25 locations in six states with revenues of $32 million.

“It was a good run,” Feltman said. “Dave and I feel like we did what we set out to do, which is grow a really nice company, and do well by our investors, employees and patients.”

During its heyday, Home Health Depot was following the industry mantra of diversification to a T, but it began selling off businesses in 2014 because management felt it was spread too thin, Feltman says.

“We grew so fast,” he said. “We had five different divisions with five different sales forces and five different software programs. We started to feel like we couldn’t pay attention as much as we needed to.”

After shedding its complex rehab, home access and hospice businesses, Home Health Depot could have homed in on the rest of its business—respiratory and HME—with specialization replacing diversification as a strategy for many providers, at least on the product side. But Feltman says it would have been difficult to do “comfortably.”

“It would have been a massive change on the run—a massive change to management, which was set up for a bigger company, to staffing and to our customer base,” he said, “and it wouldn’t have released any value for our work and our investment.”

While one could look at Home Health Depot’s decision to sell as yet another sign of the downturn of the industry, Feltman doesn’t see it that way.

“It’s not like we sold a distressed company; we sold a successful company,” he said. “The message is you can build a business and it can be attractive to other companies and private equity.”

Industry analyst Don Davis agrees that, from a business standpoint, Home Health Depot has been a success—it grew, became attractive to several buyers, and then sold.

“But from an industry standpoint, you feel bad when a company like that, that’s regional with young smart talent, leaves the market,” said Davis, president of Duckridge Advisors.

CLEARWATER, Fla. – Lincare Pharmacy Services generally complied with Medicare requirements when billing for inhalation drugs, according to a new report from the Office of Inspector General. Of 100 claim lines sampled, three did not comply because the beneficiaries medical records did not support medical necessity, resulting in $48 in overpayments. The OIG recommends that Lincare ensure that medical necessity is adequately supported in medical records before billing Medicare. Lincare concurred.

CLEARWATER, Fla. – Lincare will pay $875,000 to settle a lawsuit filed by employees whose information may have been exposed in a “phishing attack.”

The lawsuit stems from an incident on Feb. 3, 2017, when a cyber-criminal posing as a high-level Lincare executive emailed a Lincare human resources employee and requested W-2 information for all employees. The HR employee responded with attached W-2 data for a certain number of employees of Lincare and its affiliates.

On Feb. 10, 2017, Lincare sent notice of the “phishing attack” to all impacted current and former Lincare employees, notifying them that their personally identifiable information may have been compromised. The company offered two years of complimentary credit monitoring, remediation services and identity theft insurance.

On Oct. 16, 2017, however, Andrew Giancola, Raymond Scott and Patricia Smith filed the lawsuit, alleging negligence, breach of fiduciary duty, breach of implied contract and violation of Florida’s Deceptive and Unfair Trade Practices Act.

Per the settlement, $550,000 will be used to compensate class action members who suffered an out-of-pocket loss and $325,000 will be reserved for members who experienced an “eligible incident,” like a fraudulent tax return.

Lincare has also implemented, or has agreed to implement, additional security measures, including an external HIPAA risk assessment every two years; an annual risk assessment of employees’ data; updated spam filter; and employee education.

As part of the agreement, Lincare admits to no wrongdoing.

CLEARWATER, Fla. – Lincare will pay $875,000 to settle a lawsuit filed by employees whose information may have been exposed in a “phishing attack.”

The lawsuit stems from an incident on Feb. 3, 2017, when a cyber-criminal posing as a high-level Lincare executive emailed a Lincare human resources employee and requested W-2 information for all employees. The HR employee responded with attached W-2 data for a certain number of employees of Lincare and its affiliates.

On Feb. 10, 2017, Lincare sent notice of the “phishing attack” to all impacted current and former Lincare employees, notifying them that their personally identifiable information may have been compromised. The company offered two years of complimentary credit monitoring, remediation services and identity theft insurance.

On Oct. 16, 2017, however, Andrew Giancola, Raymond Scott and Patricia Smith filed the lawsuit, alleging negligence, breach of fiduciary duty, breach of implied contract and violation of Florida’s Deceptive and Unfair Trade Practices Act.

Per the settlement, $550,000 will be used to compensate class action members who suffered an out-of-pocket loss and $325,000 will be reserved for members who experienced an “eligible incident,” like a fraudulent tax return.

Lincare has also implemented, or has agreed to implement, additional security measures, including an external HIPAA risk assessment every two years; an annual risk assessment of employees’ data; updated spam filter; and employee education.

As part of the agreement, Lincare admits to no wrongdoing.

Enteral nutrition, surgical dressings top error list

WASHINGTON – Enteral nutrition had the highest error rate (87%) from Targeted Probe and Educate audits in Jurisdiction D.

Noridian Healthcare Services, the DME MAC for Jurisdiction D, posted the error rates from TPE audits (see below) from Oct. 1 to Dec. 31, 2017.

AAHomecare has requested that all the DME MACs publish the error rates.

The error rates in Jurisdiction D are:

19%, ankle-foot/knee-ankle-foot orthosis

87%, enteral nutrition

35%, external infusion pumps

76%, glucose monitors

14%, hospital beds

9%, immunosuppressive drugs

77%, knee orthosis

57%, manual wheelchairs

3%, nebulizers

34%, spinal orthoses

80%, surgical dressings

13% therapeutic shoes

21%, urological supplies

VGM crafts comment template

WATERLOO, Iowa – VGM has created a template for suppliers to use when drafting their comments on the interim final rule. Providers are encouraged to hit on a few key points, including that future policy decisions must include providers in all non-bid areas that serve patients in “non-rural” areas; that the adjusted fee schedule is unsustainable; that the oxygen “double-dip” has pushed reimbursement rates below the single payment amount; and that CMS’s complaint and access monitoring is not capturing patient complaints. Comments are due to CMS by 5 p.m. EST on July 9. The downloadable template can be found here.

Study: Home infusion therapy can improve survival rates

BANNOCKBURN, Ill. – Inotropic home infusion therapy can help improve survival for patients with advanced heart failure, according to a new study from Option Care and the Keck School of Medicine of USC. Patients prescribed the therapy, which enables the patient’s heart to pump more efficiently, may experience a better quality of life, according to a press release. Option Care’s data suggest an average survival rate of more than two years for these patients. “Receiving this life-changing therapy in the comfort of home helps patients more fully enjoy their lives,” said Tess Artig-Brown, BSN, MN, co-author of the study and director of Option Care’s Heart Failure Program. “Home infusion is also much more cost effective than care provided in the hospital or long-term care centers and research has shown that with education and support, these patients are less likely to be readmitted to the hospital.”

Deadline extended for complex rehab sign-on letter

WASHINGTON – The deadline for collecting signatures for a congressional sign-on letter that asks CMS not to apply a provision in the 21st Century Cures Act to complex rehab technology has been extended to May 25. The original deadline for the letter, spearheaded by Reps. Bob Latta, R-Ohio, and Bill Johnson, R-Ohio, was May 17. A provision in the Cures Act requires CMS to limit federal contributions to Medicaid reimbursement to competitive bidding-influenced Medicare reimbursement. Stakeholders argue that, because complex rehab has been exempted from the bid program, the provision should not apply to that technology.

Medline launches online store

NORTHFIELD, Ill. – Medline has launched PersonalCareDirect.com, its first online consumer store offering products to residents of assisted living communities. PersonalCareDirect.com includes essential personal care products, such as incontinence supplies, skin health products, mobility aids, oral care necessities and nutritional supplements. The website also features education to help families select the correct products. “Families spend a great deal of time trying to find quality, reliable supplies for their loved ones,” said Shawn Scott, senior vice president of Post-Acute National Sales at Medline, in a release. “Any resident of a community offering PersonalCareDirect.com will have access to Medline's high quality, professional-grade personal care supplies through one online portal."

InfuSystem debuts mobile app

MADISON HEIGHTS, Mich. – InfuSystem Holdings has launched InfuSystem Mobile, a patient safety app that connects patients with the infusion provider’s products, expertise and registered nurses. Features include automated infusion safety alerts, patient education videos, secure two-way communications and paperless form submission. “InfuSystem Mobile will allow us to engage our patients directly,” said Richard Dilorio, CEO, in a release. “We believe this app represents an important step forward that will enable patients to more effectively manage their treatment.”

AABCP seeks achievers

HOUSTON – The American Association of Breast Care Professionals is seeking nominations for its 1st Annual Life Achievement Award to be presented at the AABCP Global Breast Care Summit & Expo July 12. The award committee will consider individuals who have demonstrated care, compassion and advocacy for the post-mastectomy care profession. The Summit takes place July 10-12 at Harrah’s New Orleans. Submit nominations here.

Golden’s contract renewed by VA

OLD FORGE, Pa. – Golden Technologies has been awarded its third consecutive five-year contract by the Department of Veterans Affairs to supply power scooters to veterans nationwide. “The Golden Companion GC230 and GC340 power scooters allow them to access medical care and to accomplish necessary tasks in home and community environments that are so important as they gain more independence in their daily lives,” said Rich Golden, CEO of Golden Technologies. This most recent contract ends April 2023. Golden was first awarded a national contract by the VA in 2003 for mid-size three-wheel and full-size three-wheel scooters. “For the past 15 years, the continuous effort and determination of the entire Golden team—from our VA Customer Service, VA Technical Service, Production, Research & Development, and Shipping departments—have demonstrated our dedication and commitment to the Department of Veterans Affairs and our nation’s veterans,” said Donna Payer, VA national account director for Golden.

AAH surveys providers on PMD demo

WASHINGTON – AAHomecare’s Complex Rehab & Mobility Council is collecting feedback from providers about the prior authorization demonstration project for power mobility devices currently taking place in 19 states. Responses to the council’s brief online survey are due by May 25. “The PMD prior authorization program has been a win-win for the HME industry and for CMS, and information from this survey will bolster our efforts in working toward a nationwide, permanent prior authorization program for PMDs,” said Nancy Froslie of Sanford Healthcare Accessories, who serves as chairwoman of the council. The demo is set to expire Aug. 31. The council is also preparing a white paper that articulates the positive results of the demo and outlines regulatory opportunities to expand prior authorization for PMDs beyond Aug. 31.

Coleman to receive advocate award

WASHINGTON – Doug Coleman, owner of Major Medical in Loveland, Colo., and president of the Colorado Association for Medical Equipment Services, will receive the AAHomecare/Mal Mixon Legislative Advocate Award at the Washington Legislative Conference on May 23. “Doug exemplifies the characteristics of this award, which honors AAHomecare members who inspire and motivate others to join the fight for better federal policy for the home medical equipment sector,” the association stated. “Serving as a catalyst for change at both the state and federal level for three decades, Coleman has tirelessly pursued policy change that will protect the integrity of the HME community.” Among Coleman’s accomplishments: working with AAHomecare to create the Grassroots Accountability Project, an effort to establish HME advocates to cover all 535 federal legislative offices. Coleman is the ninth recipient of the award, preceded most recently by George Kucka, president of Fairmeadows Home Health Center, in 2017.

MAMES wraps up successful conference

DES MOINES, Iowa – The Midwest Association for Medical Equipment & Supplies drew its largest crowd for its most recent spring conference since 2011. The conference, held April 25-27, also drew rave reviews from attendees (a perfect 4.0 rating) and exhibitors (100% rated it the best state or regional show), according to the association. At the conference, Frannie Green of Total Respiratory & Rehab in Nebraska, and Patrick Naeger of Healthcare Equipment & Supplies in Missouri won Provider of the Year Awards. Rose Schafhauser, executive director of MAMES, received the Excellence in Leadership Award. MAMES has now opened sponsor registration for the 2018 Fall Excellence in HME Conference, Oct. 3-5, in Welch, Minn.

Medtrade sign-ups heat up

ATLANTA ­– Several exhibitors have signed up for Medtrade, Oct. 15-17 at the Georgia World Congress Center, after successful appearances at Medtrade Spring, show organizers say. “We feel that being at Medtrade Spring in Las Vegas and Medtrade in Atlanta is a great way to capture as much coverage as possible and have conversations with providers across the United States,” said Kolby Wegener, marketing specialist with Mediware. Joining Mediware are Golden Technologies, Pride Mobility, VGM, Brightree, Philips Respironics, ResMed, Broda Seating, Fisher & Paykel, First Quality Products, Medforce Technologies, MK Battery, Precision Medical, Stander and more. Medtrade expects to open early registration for the show in mid-June.

Invacare appoints former Pfizer exec to board

ELYRIA, Ohio – Invacare has appointed Petra Danielson-Weil to its board of directors. From 2014 until her retirement in August 2017, Danielson-Weil was the regional president for Pfizer Essential Health-Europe, a maker of non-viral anti-infectives, biosimilars and sterile injectable medicines, and a unit of Pfizer, a research-based global biopharmaceutical company. Invacare says with more than 30 years of experience in the medical and pharmaceutical fields in Europe, Danielson-Weil offers deep industry and international expertise. The company now has eight directors, seven of whom are considered independent.

CLEVELAND – The Riverside Company, a global private equity company based here, has sold Specialized Medical Services to Lincare.

Milwaukee-based SMS is a provider of respiratory equipment, logistics solutions and related medical products to long-term care centers like skilled nursing facilities.

Under Riverside’s hold, SMS’s footprint grew to cover more than 45 states and 3,200 facilities, and its revenue grew more than seven times, according to the firm.

Riverside initially entered the respiratory market in 2006, when it invested in RCS Management. When it acquired SMS in 2012, it named the combined company SMS.

“Combined with other add-on acquisitions, such as Future Medical and Premier Medical, SMS established itself as the largest respiratory equipment provider for SNFs in the nation,” the firm stated in a press release.

Riverside says it has made more than 130 investments in the healthcare sector.

Lincare is a subsidiary of Germany-based Linde AG.
 

WATERLOO, Iowa – A study sponsored by The VGM Group shows the cost shift that is happening as a result of reduced access to DME for Medicare beneficiaries.

The study by Leitten Consulting shows that:

·      Fall-related injuries due to failure to provide needed mobility equipment results in a cost shift of between $4,705 and $5,029;

·      COPD-related exacerbations due to failure to provide supplemental oxygen therapy results in a cost shift of about $14,350; and

·      OSA-related complications due to failure to provide CPAP therapy results in cost shift of $1,631.

“When this happens, Medicare incurs substantial increased Part A costs to treat medical complications caused by not having the needed DME,” Brian Leitten writes in the study.

This most recent study builds on another study by Leitten Consulting released last year that shows, for every dollar spent on DME, Medicare could save anywhere from $11 to $29 in payments for direct treatment.

VGM says the most recent study will be an important tool in its continued discussions with elected officials about the negative impact of Medicare’s competitive bidding program.

“(The study) provides a clear picture of the negative impact caused by both the delay and lack of access to proper equipment due to CMS’s competitive bidding program,” said John Gallagher, vice president of government relations. “The dramatic reduction in DMEPOS providers, coupled with cost shifted from prevention to treatment, are, in fact, coming at a significant larger cost to Medicare.”

Riverside Co. exits respiratory market

CLEVELAND – The Riverside Company, a global private equity company based here, has sold Specialized Medical Services to Lincare.

Milwaukee-based SMS is a provider of respiratory equipment, logistics solutions and related medical products to long-term care centers like skilled nursing facilities.

Under Riverside’s hold, SMS’s footprint grew to cover more than 45 states and 3,200 facilities, and its revenue grew more than seven times, according to the firm.

Riverside initially entered the respiratory market in 2006, when it invested in RCS Management. When it acquired SMS in 2012, it named the combined company SMS.

“Combined with other add-on acquisitions, such as Future Medical and Premier Medical, SMS established itself as the largest respiratory equipment provider for SNFs in the nation,” the firm stated in a press release.

Riverside says it has made more than 130 investments in the healthcare sector.

Lincare is a subsidiary of Germany-based Linde AG.

Insulet reduces net loss

BILLERICA, Mass. – Insulet Corp., maker of the Omnipod Insulin Management System, reported revenues of $124.3 million for the second quarter, a 13% increase compared to the same period last year. It reported revenues of $78.1 million for the Omnipod in the U.S., a 19% increase. Insulet reported a net loss of $1.7 million for the second quarter compared to a net loss of $7.8 million for the same period last year. Among the company’s highlights in the second quarter: It assumed direct European operations for the Omnipod on July 1; it commenced a limited market release in the U.S. for the Omnipod DASH, its next generation platform; and it secured in-network coverage for Omnipod with UnitedHealthcare. “Our commitment to operational excellence is driving our strong revenue growth and continuing gross margin expansion,” said Patrick Sullivan, chairman and CEO. “We are on track to achieve positive operating income in 2018 and our 2021 revenue and gross margin targets.”

Aeroflow launches contest for pumping room makeover

ASHEVILLE, N.C. – Aeroflow Breastpumps, a subsidiary of Aeroflow Healthcare, has launched a contest for a Pumping Room Makeover as part of World Breastfeeding Month. The new initiative, with support from sponsors like Lansinoh and Spectra, will provide one grand prizewinner with a pumping room makeover at their business. To enter, employees or employers fill out a quick entry form and submit photos of potential lactation room locations at their businesses. Aeroflow will accept entries from Aug. 1 to Aug. 31. The company’s team members will personally visit the winning business to set up the perfect pumping room with items like a comfortable chair, mini-fridge, microwave and pumping accessories. In addition to the grand prize, there will be five $500 gift basket prizes, filled with breastfeeding and pumping accessories.

Homecare Medical Supply joins Respiratory Services of WNY

AUBURN, N.Y., and BUFFALO, N.Y. – Homecare Medical Supply in Auburn, N.Y., has become a branch of Respiratory Services of Western New York in Buffalo, N.Y., according to the Olean Times Herald. Homecare Medical Supply will retain its name and location, and the son of the founders, Joe Manning, and granddaughter Cynthia Manning, will continue to manage the store, the newspaper reported. Respiratory Services of Western New York is a full-service provider of home respiratory and medical equipment and supplies with four additional branches in the Buffalo and Rochester areas. “We are very excited to add this great location to our growing family of stores,” said Michael McCartney, owner and CEO of Respiratory Services of Western New York. “Homecare Medical Supply is a perfect fit and with our expanded line of products, I’m sure this will be smooth sailing all the way.”

Mediware acquires BlueStrata EHR

LENEXA, Kan. – Mediware Information Systems has acquired St. Louis-based BlueStrata EHR, a cloud-based electronic health record system for long-term post-acute care providers. The deal will allow Medicare to better address the healthcare needs of the aging populations and the business and process needs of the post-acute market. “BlueStrata EHR provides Mediware with a high-quality solution and a new market opportunity where we can share our expertise in improving care through technology,” said Bill Miller, Mediware CEO. “Together with BlueStrata EHR, Mediware now offers the broadest set of solutions in the post-acute software market, including home health, hospice and rehab.”

Marx, Maughan join AAH board

WASHINGTON – AAHomecare has added two new members to its board of directors: Scott Maughan, president of Salt Lake City-based Alpine Home Medical; and Josh Marx, managing director of sleep and vice president of business development for Cleveland-based Medical Service Company. “We’re extremely fortunate to add these accomplished individuals to our leadership team,” said Tom Ryan, president & CEO of AAHomecare.  “Scott and Josh bring high levels of expertise in HME to the board, and I know that the association will benefit from their demonstrated passion and commitment to this industry.” The two seats on the board opened up following the resignation of Byram Healthcare’s Perry Bernocchi and the transition of Hoveround’s Deb Silvers to chair of the AAHomecare Regulatory Council.

Sunrise goes Down Under for buy

FRESNO, Calif. – Sunrise Medical has acquired Magic Mobility, a manufacturer of all-terrain power wheelchairs based in Melbourne, Australia.

The deal expands Sunrise’s existing product portfolio of wheelchairs, scooters, and seating and positioning products.

“The opportunity of offering our customers greater possibilities in terms of power wheelchairs is at the heart of this acquisition,” said Jim Barratt, senior vice president of commercial operations for Sunrise. “The inclusion of the Magic Mobility portfolio, which is at the leading edge of outdoor, go-anywhere, all-terrain power wheelchairs, further enables people to enjoy their life and experience an enhanced choice of product capabilities.”

Magic Mobility, which was formed in 1994 by rehab industry professionals, has 24 employees.

“We are thrilled by this transition, which will ensure that the 24-year-old Australian brand can grow and develop even further for decades,” said Jill Barnett, general manager of Magic Mobility. “Our desire has always been to grow awareness and provide more access to our products and the Magic way of life.”

Sunrise Medical’s leading market brands include Quickie, Sopur, Zippie and JAY. The company employs 2,300 associates worldwide, with facilities in the U.S., Mexico, Germany, the U.K., Spain, Poland, Holland and China.

NSM to distribute robotic eating device

NASHVILLE, Tenn. – National Seating & Mobility is partnering with Desin to distribute its Obi robotic eating device nationwide. The device, which fits within the size of a dinner placemat, features a robotic arm that can select food from four compartments and deliver it to the diner, so they can eat from a spoon, according to a press release. “This product showcases the powerful impact technology can bring to our industry,” said Bill Mixon, NSM CEO. “We are pleased to add Obi to the list of assistive technology solutions available for our clients.” The Obi was recently selected as a gold winner in the Rehabilitation and Assistive-Technology Products Category at the 20th annual Medical Design Excellence Awards (MDEA) competition. “The partnership with NSM is a game changer in our mission to make Obi more easily available nationwide,” said Jon Dekar, inventor and co-founder of Desin.

Abbott upgrades FreeStyle Libre

ABBOTT PARK, Ill. – The U.S. Food and Drug Administration has approved Abbott’s FreeStyle Libre 14-day Flash Glucose Monitoring System. The system has a one-hour warm-up period, compared to 12 hours with the FreeStyle Libre 10-day system, which received FDA approval in September 2017. The Libre is the No. 1 continuous glucose monitoring device in the world, with more than 800,000 users in more than 43 countries, according to a press release. It was approved for Medicare coverage in January.

Medtrade: Early bird gets the worm

ATLANTA – Early rates for Medtrade 2018 expire Aug. 25. The early rates allow attendees to save $100 on a conference pass and $50 on an expo pass. This year’s show is scheduled for Oct. 15-17 at the Georgia World Congress Center. To register, click here.

Bill targets MCO-related cuts to DME

SPRINGFIELD, Ill. – A bill has been introduced in the Illinois General Assembly that would help to address concerns surrounding 10% to 50% cuts to medical supply companies by certain managed care organizations, according to the Herald & Review. House Bill 5930, co-sponsored by Reps. David McSweeney, R-Barrington Hills, and Gregory Harris, D-Chicago, would prohibit medical supply companies from being paid less than 10% below Medicaid “fee for service” rates by MCOs, the newspaper reported. It would also require “minimum quality standards” for medical supply companies and prohibit managed care organizations from signing “sole-source” contracts. “The quality standards, McSweeney said, would help to ensure that patients are well-served by companies accepting the rock-bottom payments being mandated by at least one of the state’s contract Medicaid managed care companies, IlliniCare Health,” the newspaper reported. McSweeney hopes to get the bill passed during the upcoming fall veto session or the 2019 spring session.

Invacare rebrands Top End

ELYRIA, Ohio – Invacare is refreshing its Top End wheelchair brand with a new logo and a new website set to launch in the third quarter. The new “t-racer” logo provides a visual representation of the brand: cutting edge, sleek and performance focused, Invacare stated in a press release. “The decision to rebrand Top End is about more than just changing the logo,” said Jonathan Miller, senior director, mobility and seating, at Invacare. “It’s about promoting the incredible team behind our products, highlighting our championship legacy and, most importantly, helping users discover their full potential.” The new website will feature an intuitive design, and will allow consumers to order stock products and parts online, Invacare says. Top End joined Invacare in 1993 as the manufacturer of the company’s performance, recreational and sports wheelchairs, including the Top End Eliminator NRG Racing Wheelchair coming soon.

CU hits milestone

BILLINGS, Mont. – Computers Unlimited, developers of TIMS Software, celebrates 40 years in business this year. The company was co-founded in 1978 by Dr. Mike Schraer and is now run by President David Schraer. It has three different software application divisions for three different industries: medical, industrial and audiology. CU got its start by servicing local industrial gas and welding companies, expanded its services to HME companies in the 1980s and to speech, language and pathology companies through an acquisition in 2010. In its 40th year, the company highlights its ability to adapt to the more mobile work environment and to attract long-term employees. “The development of three new smartphone apps called TIMS Assistant, TIMS Delivery and TIMS Plat are a reflection of our DNA—our people make it happen,” David Schraer said. “I’m very proud that our staff members are long-term, which is something you don’t see too often in today’s business climate. We all share the same vision—to meet the every-changing needs of our users.”

CLEARWATER, Fla. – Lincare has paid $5.25 million to resolve allegations that it violated the federal False Claims Act and the Anti-Kickback Statute by offering illegal price reductions to Medicare beneficiaries, according to the U.S. Attorney’s Office for the Southern District of Illinois. The government alleged that, from 2011 to 2017, Lincare attempted to gain a competitive advantage in the market by unlawfully waiving or reducing co-insurance, co-payments and deductibles for beneficiaries who participated in a Medicare Advantage Plan operated through a private insurer. The allegations were first brought to light in a 2015 whistleblower lawsuit filed by Brian Thomas, a former billing supervisor at Lincare, who will receive $918,750 from the settlement proceeds.

WASHINGTON – AAHomecare emphasized the importance of coordinated care in its comments to CMS on possibly relaxing the Stark Law.

The Stark Law is designed to prevent physicians from ordering services and products for Medicare beneficiaries when the motivation is to make money.

In its comments, however, AAHomecare states that the Stark Law may “overly limit” healthcare providers—not only physicians but also HME providers, therapists (respiratory, physical and occupational), home health agencies and pharmacies—from coordinating care to treat beneficiaries more cost effectively.

“While it is important that the Medicare program encourage coordination, it is equally important that protection against fraud be maintained,” states AAHomecare. “This is a balancing act.”

AAHomecare also emphasized that a prohibition against allowing physicians to provide DME not listed in the “allowed products” category remain in place to ensure the infrastructure necessary to service beneficiaries; preserve beneficiary choice of products; and ensure accreditation standards are met.

The Department of Health and Human Services published a request for information, “Medicare Program: Request for Information Regarding the Physician Self-Referral Law” in June.

Association points to burdensome resupply requirements

AAHomecare also submitted comments to a June report from the Office of Inspector General that said most Medicare claims for CPAP supplies did not comply with requirements.

In a letter to Inspector General Daniel Levinson, the association pointed out that the local coverage determinations for CPAP are known for being one of the most complicated, with overly burdensome requirements.

While the OIG report cited proof of delivery issues in 36 out of 110 errors, AAHomecare pointed to the fact that CMS in recent months has provided guidance to allow additional flexibility. For example: The date of service on the claim can now be the ship date, the actual receipt date or the date the shipping label is printed, instead of the narrow definition of the date of service only being the ship date.

AAHomecare also suggested that the sample of 110 claims may not paint an accurate picture.

“In closing, AAHomecare would request the OIG to recommend that CMS continue to look at the overly burdensome nature of PAP supply requirements in an effort to work with the industry to ensure that beneficiaries have access to needed supplies for their sleep therapy,” it wrote.

Lincare pays $5.25M to resolve allegations

CLEARWATER, Fla. – Lincare has paid $5.25 million to resolve allegations that it violated the federal False Claims Act and the Anti-Kickback Statute by offering illegal price reductions to Medicare beneficiaries, according to the U.S. Attorney’s Office for the Southern District of Illinois. The government alleged that, from 2011 to 2017, Lincare attempted to gain a competitive advantage in the market by unlawfully waiving or reducing co-insurance, co-payments and deductibles for beneficiaries who participated in a Medicare Advantage Plan operated through a private insurer. The allegations were first brought to light in a 2015 whistleblower lawsuit filed by Brian Thomas, a former billing supervisor at Lincare, who will receive $918,750 from the settlement proceeds.

Mediware acquires Rock-Pond Solutions

LENEXA, Kan. – Mediware Information Systems has acquired Rock-Pond Solutions, a business intelligence and analytics software provider for the home infusion, home medical equipment, and specialty pharmacy industries. The deal will allow Mediware to develop better solutions for the post-acute care market. It will also support more collaborative work on Mediware’s CareTend product roadmap. “(Rock-Pond’s) highly regarded team brings deep experience in post-acute care and they have successfully helped Mediware’s CareTend software become the strong solution it is today,” said Bill Miller, Mediware CEO in a press release.

OIG finds a few overpayments, Liberty disagrees

PORT ST. LUCIE, Fla. – Liberty Medical mostly complied with Medicare requirements for inhalation drugs, according to a new report from the Office of Inspector General. The OIG sampled 100 claims and found 94 in compliance. Of the remaining six claims, the agency says Liberty did not provide medical records for four, and lacked proof of delivery for two, resulting in an overpayment of $2,408. As a result, the OIG estimated that Liberty received $47,5626 in overpayments and recommended that the provider refund the money to Medicare contractors. Liberty disagreed with the OIG’s recommendations, saying that it provided sufficient documentation to establish medical necessity, and that it provided additional proof of delivery documentation for six of eight disallowed sample claims.

VGM Fulfillment expands footprint

WATERLOO, Iowa – VGM Fulfillment has opened a resupply distribution center in Nashville, Tenn. The 40,000-square-foot warehouse is staffed with 22 existing employees who are familiar with CPAP resupply, according to a press release. “Expanding our operations to a logistics hub like Nashville allows us to route some of our resupply order volume to the new facility—ensuring that patients located in the southern and eastern United States will receive their orders even quicker, resulting in greater patient satisfaction,” said Jeremy Stolz, president of VGM Fulfillment. “We’ve experienced tremendous growth year over year. This expansion will allow us to ship more packages per day all while improving transit times.” VGM Fulfillment ships more than 2 million orders annually, and recently launched a resupply program for compression stockings.

Golden Technologies video earns honors

OLD FORGE, Pa. – Golden Technologies has been named a bronze winner in the 39th Annual Telly Awards for its product launch video for the MaxiComfort power recliner, it announced in a press release. The video was honored in both the general/home furnishings and the craft-directing for promotional video categories. “It is a credit to the huge undertaking involved in elevating our marketing to the next level, hiring talented people to help us create real product lifestyle pieces that not only inspire consumers but help us illustrate the way these products can make you feel,” said Tim Robinson, director of digital media. The Telly Awards honor excellence in video and television.

GAO sides with C2C on QIC contract

WASHINGTON – The Government Accountability Office agrees that CMS failed to properly assess “potential organizational conflict” when the agency awarded Maximus the DMEPOS QIC contract. The GAO’s decision comes after C2C Solutions, the current QIC contractor, protested the award. The GAO’s decision sustains C2C’s protest. “Protest that the agency failed to evaluate a potential impaired objectivity organizational conflict of interest is sustained where the awardee’s wholly-owned subsidiary would review decisions on appeal from the parent company’s own claims decisions, and the agency did not meaningfully consider whether this structure created an impaired objectivity organizational conflict of interest,” the GAO stated. Additionally, “protest that the agency failed to evaluate a potential unequal access to information organizational conflict of interest is sustained where the record does not demonstrate that the agency reasonably evaluated a potential unequal access to information conflict arising from the relationship between the awardee and one of its subsidiaries,” it stated.

Somnoware enhances platform

SUNNYVALE, Calf. – Somnoware, a provider of digital health software, has launched an enhanced DME-ordering capability for enterprise healthcare systems. The expanded interoperability with electronic medical record or EMR software enables customers to manage patients who have historically not been on the platform. “This will allow enterprise healthcare systems to rapidly deploy Somnoware across all their facilities without changing their existing processes, resulting in improved care coordination and reduced costs,” the company states. With the enhanced DME ordering capability, physicians and care providers can now place orders within their existing EMR system. The order is then transmitted automatically via Somnoware to the DME company for fulfillment. During the transmission, Somnoware appends other relevant patient information to the electronic order, so the DME company receives complete patient records. Also, if the DME order was originally placed by a non-physician, Somnoware offers the opportunity for the physician to electronically sign the order and append notes before it is sent to the DME company.

eSolutions gets new CEO

OVERLAND PARK, Kan. – eSolutions, a provider of revenue cycle management analytics and cloud-based workflow solutions, has named Gerry McCarthy CEO. McCarthy has more than 20 years of healthcare experience, most recently as president of TransUnion Healthcare, where he oversaw the rapid growth and strategic direction of the company. He replaces Gene Creach, who is retiring after 18 years at the company. Creach helped eSolutions grow to process more than 50 million claims a year for more than 30,000 providers. The company also provides nationwide Medicare connectivity across all nine Medicare administrative contractors. Its customers span hospitals, home health and hospice agencies, skilled nursing facilities, DME suppliers, physician practices and other provider types.

VMI donates van

PHOENIX – Vantage Mobility International has provided an accessible van to Ability360, a nonprofit organization that offers programs to empower people with disabilities. The van will be used to transport members and enable them to experience the most accessible sports and fitness center in the metro area, according to a press release. “Ability360 as an organization does so much for our community and reflects Vantage Mobility International’s values and mission to always remember the challenges our customers face and our desire to improve their independence and access to the greater community,” said Steve Morris, COO of VMI.

Quantum Rehab backs Team Gleason

EXETER, Pa. – Quantum Rehab has pledged to contribute $50,000 to the Team Gleason Foundation, a nonprofit that aims to provide leading edge technology, equipment and services to individuals with ALS. Quantum Rehab will also pay for seat-elevation technology, like its iLevel system, to be distributed by Team Gleason to individuals living with ALS. “Those living with ALS face daily challenges,” said John Storie, vice president, Quantum sales-Eastern America. “Access to life-sustaining mobility should not be one of them. It’s our privilege to work with Team Gleason to ensure that those living with ALS have the best mobility technology and the highest quality of life possible.” Team Gleason, founded by Steve Gleason, a former New Orleans Saints football player, after his diagnosis with ALS in 2011, is accepting applications from individuals living with ALS who are interested in a power seat elevator.

NRRTS taps Dickerson as next president

LUBBOCK, Texas – NRRTS has announced the results of its 2018 board elections, including Gerry Dickerson as president-elect. Dickerson works for National Seating & Mobility and has been a NRRTS registrant since 1994. Katie Roberts, who works for Cimarron Medical Services and has been a registrant since 2007, has been named vice president; Mike Osborn, who works for Alliance Rehab and Medical Equipment and has been a registrant since 2000, has been named treasurer for a second term; and Carey Britton, who works for NSM and has been a registrant since 2002, has been named secretary. Directors at large are Bob Harry of AABON Home Health Care Supply, a registrant since 2008; and Toby Bergantino of NuMotion, a registrant since 1993. Doug Crana of Consolidated Medical has been elected review chair, Region B; and Tom Simon of NuMotion has been appointed Review Chair, Region A.

Short takes: Medical Service Co., CareCentrix

Cleveland-based Medical Service Co. has been named a 2018 NorthCoast 99 winner. Winners represent the best workplaces in northeast Ohio. It’s the seventh time the provider has been recognized…Leslie Norwalk has been elected to CareCentrix’s board of directors. Norwalk has more than two decades worth of healthcare experience, including serving as Acting CMS Administrator during the Bush Administration.

MIDDLEBURY, Conn. – J&L Medical Services has sold to Lincare, it was announced Sept. 4.

J&L Medical, a provider of home respiratory and sleep therapy equipment and supplies, serves patients from seven locations throughout Connecticut and southwestern Massachusetts. The company, named “Best Home Respiratory Provider” by HME News in 2007, was founded by John Loyer and Lynn Tata Plummer in 2003.

“I am very proud to have worked with the best team who share a common goal: delivering equipment and services in a caring, competent and professional manner,” said Loyer, CEO, in a press release.

J&L Medical was in the news in 2016, when it agreed to pay $600,000 to settle allegations that it violated state and federal regulations by using unlicensed technicians to set up CPAP and Bi-level machines—a common practice in the industry, Loyer said at the time.

Terms of the deal between J&L Medical and Lincare were not disclosed, but Lincare will maintain J&L Medical’s current locations and most of its staff, according to the release.

Paragon Ventures served as an adviser to J&L Medical.

MIDDLEBURY, Conn. – When Lincare bought J&L Medical Services, it got a “gem,” says one industry analyst.

J&L Medical, a provider of home respiratory and sleep therapy equipment and supplies, serves patients from seven locations throughout Connecticut and southwestern Massachusetts. The company, named “Best Home Respiratory Provider” by HME News in 2007, was founded by John Loyer and Lynn Tata Plummer in 2003.

“John focused and did a really good job in the area of sleep,” said Jonathan Sadock, managing partner/CEO of Paragon Ventures, which advised J&L Medical on the transaction. “He built enough scale behind it to really make a difference in that marketplace. Lincare really got a gem with J&L.”

Terms of the deal between J&L Medical and Lincare were not disclosed, but Lincare will maintain J&L Medical’s current locations and most of its staff, according to a press release.

For his part, Loyer credited his employees for the company’s success over the years.

“I am very proud to have worked with the best team who share a common goal: delivering equipment and services in a caring, competent and professional manner,” said Loyer, CEO, in the release.

J&L Medical’s success hasn’t been without hiccups, however: In 2016, it agreed to pay $600,000 to settle allegations that it violated state and federal regulations by using unlicensed technicians to set up CPAP and Bi-level machines—a common practice in the industry, Loyer said at the time.

CLEARWATER, Fla. – Lincare Holdings, a subsidiary of Linde Group of Germany, has acquired Preferred Homecare/Lifecare Solutions, a portfolio company of Beecken Petty O’Keefe of Chicago, according to PE Hub Healthcare.

Preferred Homecare provides a full range of HME, including respiratory, complex rehab and NPWT products, from 22 locations, largely in Arizona, but also in Colorado, California and Nevada, according to its website.

Beecken Petty O’Keefe, a healthcare-focused private equity firm, started shopping around Preferred Homecare in October 2018, more than a decade into its ownership, PE Hub reported.

Beecken Petty O’Keefe bought Preferred Homecare from The Halifax Group in 2007.

CLEARWATER, Fla. – Lincare Holdings, a subsidiary of Linde Group of Germany, has acquired Preferred Homecare/Lifecare Solutions, a portfolio company of Beecken Petty O’Keefe of Chicago, according to PE Hub Healthcare.

Preferred Homecare provides a full range of HME, including respiratory, complex rehab and NPWT products, from 22 locations, largely in Arizona, but also in Colorado, California and Nevada, according to its website.

Beecken Petty O’Keefe, a healthcare-focused private equity firm, started shopping around Preferred Homecare in October 2018, more than a decade into its ownership, PE Hub reported.

Beecken Petty O’Keefe bought Preferred Homecare from The Halifax Group in 2007.

Xealth receives investment from Philips, ResMed
SEATTLE – Xealth, a digital prescribing platform, has raised $11 million in a Series A financing round with new investments from healthcare companies like Philips, ResMed and McKesson.

The company says the investment will “fuel the expansion of Xealth’s platform, better connecting patients and doctors.”

“With these new partners joining our existing investors and customers, Xealth will be serving virtually every sector of the healthcare industry—providers, payers, pharma, devices and supply chain,” said Mike McSherry, CEO of Xealth. “The Xealth platform is quickly becoming the preferred ‘digital formulary.’”

Xealth allows clinicians to prescribe and monitor digital healthcare content, apps, devices and services from within their electronic health record charting interface, and to integrate the interaction into a health system’s existing patient portal.

Originally incubated and launched at Providence St. Joseph Health in 2017, Xealth also works with UPMC, the Froedtert and the Medical College of Wisconsin health network, Baylor Scott and White, Duke and other health systems.

ResMed was an early partner of Xealth at Providence to help care for 40,000 patients using CPAP machines.

Xealth also made headlines last year when it was reportedly involved in a pilot program with Amazon and two hospital networks to allow doctors to recommend bundles of medical supplies and have them delivered to the homes of patients upon discharge.

AOPA criticizes ‘unscrupulous’ providers
ALEXANDRIA, Va. – The American Orthotic & Prosthetic Association is “strongly opposed” to lead-generation marketing for orthoses, a business practice that it says is responsible for an increase in fraud and abuse, the association said in a statement today.

Lead-generation marketing uses television, website and social media channels to encourage people to contact a call center that then provides “leads” to physician referral sources and medical equipment providers. People receive one or more orthoses, often without ever seeing a physician or the supplier.

“This model of delivery is not one that is interested in the provision of clinically appropriate orthoses by properly trained, educated and certified or licensed orthotic professionals,” said AOPA. “It is simply an opportunity for unscrupulous providers to take advantage of loopholes in the Medicare claims processing system to generate as much revenue as possible without regard to the medical need of the orthoses they are marketing.”

Recent reports from the Office of Inspector General have highlighted increased instances of fraud and abuse for knee and back braces.

CMS recently announced it would include the devices in the next round of competitive bidding.

OIG: Three strips dominate market
WASHINGTON – The top three types of diabetes test strips accounted for just over half of the non-mail order market, and the top 10 types accounted for approximately 93% of the market, according to a new report from the Office of Inspector General.

The sampled claims included 34 types of test strips provided to Medicare beneficiaries from April-June 2018.

This is the second of two OIG reports providing market shares of diabetes testing supplies during that time period. The first report, released in January, provides market share for the national mail order program during that same time period. The reports are meant to inform future rounds of competitive bidding for diabetes testing supplies.

CMS announced in March that it would not include a national mail order program for diabetes testing supplies in Round 2021 to give it time to make changes required by the Bipartisan Budget Act of 2018. All bid contracts expired on Dec. 31.

In an effort to ensure access to a variety of diabetes testing supplies, the budget for the Department of Health and Human Services for fiscal year 2019 includes a provision that would strengthen the 50% rule by: requiring bidders to attest to their ability to maintain an inventory of strips consistent with their bid, and requiring CMS to establish and maintain a surveillance program to ensure suppliers are complying with the rule.

Are you commonly owned or controlled?
WASHINGTON – The CBIC on March 26 asked providers to review their enrollment record in preparation for Round 2021 of national competitive bidding. Specifically, the CBIC asked providers to review if they are commonly owned (one or more providers has an ownership interest totaling at least 5% in the others) and/or commonly controlled (one or more providers are also an officer, director or partner of another provider). Commonly owned and/or commonly controlled providers are prohibited from competing against themselves when submitting bids in the same competitive bidding area and product category combination, the CBIC says. Therefore, if you are a commonly owned and/or commonly controlled provider when registration opens, you must register one time with one Provider Transaction Access Number (PTAN), designating it your primary location in the bid system, it says. When the bid window opens, you must submit one bid that includes all commonly owned and/or commonly controlled locations that would furnish the lead item and all non-lead items in the same competition, the CBIC says.

Senators commend assistive technology professionals
WASHINGTON – Sens. Bob Casey, D-Pa., and Kevin Cramer, R-N.D., filed a resolution on March 11 to designate March 27 as “National Assistive Technology Awareness Day.” Senate Resolution 103 commends assistive technology specialists and program coordinators for their hard work and dedication to serving people with disabilities who are in need of finding the proper assistive technology to meet their individual needs; and professional organizations and researchers who are dedicated to facilitating the access and acquisitions of assistive technology for people with disabilities and older adults in need of assistive technology devices.

RESNA calls for nominations
ALEXANDRIA, Va. – The RESNA board of directors seeks nominations for the annual RESNA Awards. The awards recognize individuals and organizations that have made significant contributions to the field of assistive technology and rehabilitation engineering or their service to RESNA. “The response from RESNA’s professional network is essential for our committee to identify those who have gone above and beyond promoting the health and well-being of people with disabilities through increasing access to technology solutions,” the organization stated. The awardees will be honored at the RESNA Annual Conference in June. The deadline for nominations is April 19.

Medicaid fraud unit obtains millions in recoveries
WASHINGTON – Medicaid Fraud Control Units obtained 1,503 convictions in fiscal year 2018, including 1,109 convictions for fraud and 394 convictions for patient abuse or neglect, according to a new report from the Office of Inspector General. Fraud conviction accounted for about 73% of all convictions for the last five years. Criminal recoveries in fiscal year 2018 were $314 million—less than half of the amount recovered in 2017, but on par with fiscal years 2014-2016, according to the report. Civil recoveries were $545 million. Recoveries against DMEPOS suppliers were nearly $14.9 million. MFCUs obtained 810 civil settlements and judgments, with the largest number (217) against pharmaceutical manufacturers. DMEPOS represented 57 settlements.

Pride, Quantum obtain BBB accreditation
EXETER, Pa. – Pride Mobility Products and Quantum Rehab have obtained accreditation from the Better Business Bureau serving metro Washington, D.C., and eastern Pennsylvania. BBB accredited businesses must adhere to its Code of Business Practices, a set of policies, procedures and best practices for representing trustworthiness, according to a press release. “We are pleased to be a BBB Accredited Business because we value building trust with our consumers,” said Scott Meuser, chairman and CEO of Pride Mobility Products and Quantum Rehab. “Our BBB Accreditation gives our customers confidence in our commitment to maintaining high ethical standards of conduct.”

Triple W partners with NAFC
SAN DIEGO – Triple W has partnered with the National Association for Continence to educate patients, caregivers and professionals about urinary incontinence and bladder health. Triple W and NAFC will collaborate on blog posts, co-marketing promotions and social media to educate people experiencing a loss of bladder control and caregivers about types of incontinence and how to manage the condition. “The NAFC is a valuable resource for anyone with urinary incontinence to learn more about the condition and how to best manage it,” said Ty Takayanagi, vice president of marketing for Triple W. “Through our partnership with NAFC, we hope to inform customers that our product can be a solution for people suffering with specific types of incontinence in order to maintain independence and live an active daily life.” Triple W is the developer of the DFree, a wearable device that alerts users when its time to use the bathroom.

ATLAS-RPM makes debut
LAS VEGAS – ATLAS Software, an integrated software that combines enterprise resource planning with customer relationship management for complex rehab and HME providers, has launched ATLAS-RPM, a professional services group. ATLAS-RPM, founded by Bill Paul, Ty Bello and Jonathan Walters, will provide insight and coaching to help providers grow revenues, clarify processes and transform management, according to a press release. “We’re extremely excited about the launching of the ATLAS-RPM team,” said Paul CEO in a release. “This group collectively brings over 100 years of real-world experience to potential HME and CRT industry partners.” ATLAS-RPM will be exhibiting at Medtrade Spring in Las Vegas and will have a presence at several other industry events, including the National CRT Leadership & Advocacy Conference in Washington, D.C., in May and the VGM Heartland Conference in Waterloo, Iowa, in June.

ResMed launches brand-agnostic resupply program
SAN DIEGO – ResMed has launched ResMed ReSupply for all U.S. HME providers to increase adherence and improve patient satisfaction, the company announced March 25. “Automating the resupply process is critical to maximize patients’ success on therapy, as well as HME’s business efficiency,” said Raj Sodhi, SaaS president for ResMed. “With Brightree offering an automated resupply solution for its HME customers, and ResMed now launching one for non-Brightree customers, HMEs using any billing platform can all enjoy the benefits of an easily managed resupply program.” The solution automates enrollment as patients meet compliance requirements and lets them choose their preferred contact method—text, email or live call. Patients can also order supplies through a web- or mobile-based patient portal. Providers can manage all the resupply needs of their patients from a single comprehensive dashboard, so they can quickly identify, prioritize and assign tasks.

Viemed increases liquidity options
LAFAYETTE, La. – Viemed Healthcare has amended a two-year commercial business loan agreement, increasing its line of credit to $10 million. “We are pleased to announce the increase in our line of credit to $10 million, which gives us more liquidity as we continue our rapid growth around the country,” said CEO Casey Hoyt. “Being that we have remained undrawn on this loan since inception, we do not anticipate needing to utilize it in the near term; however, it is nice to have additional liquidity options as we continue to execute our plan.” The agreement is with Whitney Bank, a Mississippi state chartered bank, and will carry an interest rate that is based on one month ICE LIBOR plus 3% per annum form date of advance until paid. Any amounts advanced will be secured by substantially all of the company’s assets. During a recent earnings call, Viemed detailed its plans to expand into oxygen and sleep therapy.

Sigvaris changes name
PEACHTREE CITY, Ga. – Sigvaris is now Sigvaris Group. The company, which has been making compression socks and hosiery for 150 years, will use the name change “to build a customer centric platform for innovation and growth,” it says. Under the new brand architecture, the company will be called Sigvaris Group, but its products will have their own unique brands. Previously, Sigvaris was synonymous with the company and its products. “With the announcement of Sigvaris Group comes a better understanding of our organization and our unique product lines,” said CEO Mark Bunker. “We are giving our customers more clarity and better understanding of our corporate entity and our brands.”

CERRITOS, Calif., and LEXINGTON, Mass. – KabaFusion has acquired the home infusion assets of Lincare, expanding its footprint to 28 home infusion specialty pharmacies.

The deal adds specialty pharmacies in 11 markets: Alabama, Arkansas, Florida, Indiana, Kentucky, Michigan, New Jersey, New York, North Carolina, Virginia and Wyoming.

“We are excited to expand our national network with the infusion pharmacies from Lincare,” said Dr. Sohail Masood, founder and CEO. “We look forward to combining the best of both our teams, as together we will be even better positioned to continue delivering high-quality home infusion services to achieve the best possible outcome for each of our patients.”

KabaFusion has existing specialty pharmacies in seven markets: California, Florida, Illinois, Massachusetts, New Jersey, Pennsylvania and Texas. It is licensed to serve patients in 44 states.

The company’s clinician-led team will continue to lead the combined company.

It’s the first acquisition for KabaFusion since partnering with Pritzker Private Capital in January 2019.

CERRITOS, Calif. – KabaFusion has acquired the home infusion assets of Lincare, expanding its footprint to 28 specialty pharmacies.

The deal adds specialty pharmacies in 11 markets: Alabama, Arkansas, Florida, Indiana, Kentucky, Michigan, New Jersey, New York, North Carolina, Virginia and Wyoming.

“We are excited to expand our national network with the infusion pharmacies from Lincare,” said Dr. Sohail Masood, founder and CEO. “We look forward to combining the best of both our teams, as together we will be even better positioned to continue delivering high-quality home infusion services to achieve the best possible outcome for each of our patients.”

KabaFusion has existing specialty pharmacies in seven markets: California, Florida, Illinois, Massachusetts, New Jersey, Pennsylvania and Texas. It is licensed to serve patients in 44 states.

The company’s clinician-led team will continue to lead the combined company.

It’s the first acquisition for KabaFusion since partnering with Pritzker Private Capital in January 2019.

Knueppel Healthcare to close
MILWAUKEE – Knueppel Healthcare Services, citing unsustainable Medicare reimbursement, will close by the end of April, according to the Milwaukee Business News.

The provider, a third-generation family business, also cited competition from e-commerce as a reason for closing and laying off 44 employees.

“I’ve been doing it for close to 20 years now; I gave it my best,” William Knueppel told the newspaper. “On a personal level, I feel I let my father down (who passed in 2008). I feel bad that I can’t continue the family business, but I know he would understand.”

William Knueppel’s grandparents founded Knueppel in 1955 as a pharmacy and their son Richard Knueppel took over the business in 1972. Shield Healthcare bought the business in the 1980s, transitioning it to an HME company. Richard Knueppel bought the business back three years later, and then William Knueppel and Cindy Ciardo bought it in 2004.

AdaptHealth buys Healthline
PLYMOUTH MEETING, Pa. – AdaptHealth has acquired Healthline Medical Equipment, a provider with 13 locations across Forth Worth and Austin, Texas.

“The southeastern and southwestern United States remain attractive markets for AdaptHealth and we are thrilled to have the experienced and well-respected teams at Healthline join us to better serve these local communities,” said CEO Luke McGee.

Healthline, founded in 1998, will continue to operate under its current name and leadership team, led by Dewayne Andrus, Barbara Leech, Ed Sims and Michael Dick.

AdaptHealth says Healthline generated net revenues of about $30 million for the 12 in 2019.

“Including the addition of Healthline, we now expect net revenue for 2020 between $790 million and $808 million, EBITDA of $160 million to $164 million and adjusted EBITDA less patient equipment of $98 million to $101 million,” said AdaptHealth CEO Luke McGee.

AdaptHealth has also closed on its previously announced acquisition of Advanced Home Care’s HME businsess.

Mon Health takes over HME business
FAIRMONT, W.Va. – The Mon Health System has acquired 100% of Mon Health Center Mon Home Medical Equipment and Supplies, according to the Fairmont News.

The news follows Fairmont Regional Medical Center’s decision to close, the newspaper reports.

“We’ve had a longstanding 50% partnership with Fairmont on the DME business and we acquired the other 50%,” David Goldberg, president and CEO of Mon Health told the Fairmont News.

Mon Health says the deal will increase its reach throughout the region, according to the newspaper.

F&P increases guidance, in part due to coronavirus outbreak
IRVINE, Calif. – Fisher & Paykel Healthcare has updated its revenue and earnings guidance for the financial year ended March 31, 2020, due to better-than-expected sales in its home care product group.

“We’ve seen better-than-expected sales in our home care product group combined with continued strong growth in our hospital product group,” said Lewis Gradon, managing director and CEO. “This includes an increase in demand from China related to the COVID-19 coronavirus outbreak.”

F&P now expects full-year operating revenue to be about $1.2 billion (vs. $1.19 billion) and net profit after tax to be in the range of about $260 million to $270 million ($255 million to $265 million), assuming a NZ:US exchange rate of about 64 cents for the balance of the financial year.

Gradon noted that F&P doesn’t have a manufacturing facility in China, but the company does buy raw materials from suppliers in the country.

“At this stage, we do not anticipate any significant impact on supply to our existing customers,” he said. “We will continue to assess this on an ongoing basis, particularly if the outbreak escalates or continues for a prolonged period.”

Gradon also noted that F&P’s employees have been “working long hours to ship products quickly, assemble them and meet the need for training, particularly in Wuhan.”

“Many of our suppliers have expedited the supply of raw materials to us as a manufacturer of essential medical devices and we are deeply grateful for that,” he said.

Viemed grows vent base by 31% in Q4
LAFAYETTE, La. – Viemed Healthcare reported net revenues of $21.4 million for the quarter ended Dec. 31, 2019, a 30% increase over revenue less bad debt expense reported for the comparable quarter in 2018.

Net income was $2.4 million, a 20% decrease.

Viemed reported net revenues were $80.3 million for 2019, a 38% increase compared to 2018. Net income was $8.5 million, a 10% decrease.

The company says it grew its ventilator patient base by about 31% in the quarter year over year, and 5% compared to the previous quarter.

“I am once again proud of our team for posting another record year for revenues and Adjusted EBITDA,” said Casey Hoyt, Viemed's CEO. “While the financial results are impressive, I am equally as pleased with the continued development of our internal platform to accommodate additional growth in the future of our business. We continue to invest in programs that are focused on the best care for our patients, and that mission is designed to result in organic growth in the future.”

Viemed says it expects to generate net revenues of about $21.8 million to $22.8 million during the first quarter of 2020.

AAH fuels state advocacy efforts
WASHINGTON – AAHomecare has developed a toolkit for leaders at state and regional HME associations to use in their advocacy efforts.

The State Legislative & Regulatory Resource Toolkit is the product of a yearlong collaboration between AAHomecare’s payer relations team and its state legislative and regulatory workgroup, drawing on the perspectives of stakeholders with experience working with state legislators and regulators, the association says.

“This new resource captures the best thinking in our industry on advancing better state-level HME policy for HME,” said Laura Williard, AAHomecare vice president of payer relations, who helped guide the project. “By pulling this information together, we hope to further boost the already-strong capacity of HME advocates have in influencing state policy.”

The resources in the toolkit include:

• Information and insight on legislative and regulatory avenues to address payer issues.
• Best practices to help stakeholders evaluate opportunities and processes to advance initiatives at the state legislative and regulatory level.
• Perspectives on the pros and cons of addressing issues through legislative vs. regulatory approaches.
• Examples of proposed legislative language on multiple issues.
• Examples of legislative language successfully passed into law.

For a copy of the toolkit, contact Laura Williard (LauraW@aahomecare.org), David Chandler (DavidC@aahomecare.org), or your state/regional association.

CMS: New rates will be in place July 1
WASHINGTON – CMS has provided an update on billing for accessories for complex rehab manual wheelchairs, according to NCART.

A bill was passed late last year requiring the agency to stop applying competitive bidding pricing to these accessories for 18 months starting Jan. 1, 2020.

NCART pulled these highlights from the update:
The new payment rates (not yet published) will be in place on July 1 and providers will be able to use the KU modifier for billing. Until July 1, providers should continue to bill as they have been.
These codes have been added to the list of impacted complex wheelchair base codes: E1231, E1232, E1233, E1234.
Public comments regarding impacted accessory codes are being requested by March 12. NCART plans to review the codes to ensure all needed codes have been included and will submit comments.

CMS is researching whether or not they will be able to offer the option to automatically reprocess claims submitted prior to July 1, rather than requiring providers to resubmit.

VGM adds third warehouse for supplies
WATERLOO, Iowa – VGM Group has added a 78,000-square-foot warehouse in Phoenix to serve as a fulfillment center for processing and shipping CPAP supplies, along with other health care supplies, directly to patient homes. “We have a large customer base in the western United States,” said Jeremy Stolz, president of VGM Fulfillment. “Phoenix had exactly what we needed geographically, logistically and from a facility standpoint to support our business. We will be able to dynamically route orders through this facility, leading to faster deliveries and happier patients in that part of the country.” VGM Fulfillment is scheduled to be up and running in Phoenix in early March. It already packs and ships more than 4 million orders annually from locations in Waterloo, Iowa, and Nashville, Tenn.

Supplier count continues to be stable
WASHINGTON – The number of suppliers from Jan. 1, 2019, to Jan. 1, 2020, has remained stable, according to AAHomecare’s latest supplier tracking sheet. The decrease in the number of suppliers since 2010, however, continues to be 35%. The number of suppliers was 9,195 in Jan. 1, 2019, vs. 9,154 on Jan. 1, 2020. The number of suppliers in November 2010: 14,066.

WellSky rebrands services
OVERLAND PARK, Kan. – WellSky has launched WellSky Services to offer expertise from the company’s team of industry and software experts. The launch also formally rebrands WellSky subsidiary, Fazzi Associates, as part of WellSky Services. “We’re strengthening our commitment to client success by delivering top-of-the-line services to improve all aspects of our clients’ businesses,” said Bill Miller, CEO of WellSky. “Officially integrating Fazzi into the overall WellSky brand increases alignment and collaboration between our teams to better serve our clients.” WellSky Services comprises three offerings: 1) advisory services, including strategic consulting, regulatory and compliance services, and a learning center; 2) managed IT services, coding services, revenue cycle management, hosting services and CAHPS support; and 3) solution deployment services, technical services, software optimization and readiness, and learning and training services.

VGM offers leadership guidance
WATERLOO, Iowa – VGM & Associates has released the first of four playbooks planned for 2020. The first playbook focuses on leadership and delves into everything from leading with emotional intelligence to changing company culture. The other three playbooks will focus on human capital, data and technology. The playbooks are free for VGM members.

HomeCare Connect adds text service
WINTER PARK, Fla. – HomeCare Connect has launched TextConnect, a free texting service. During its initial contact with an injured worker, the company will now ask if they prefer to communicate via texts or phone calls. “Texting is convenient and fast,” said Vonesa Wenzel, managing partner. “People tend to send calls from unknown numbers to voicemail and end up playing phone tag with the clinical care coordinator. With TextConnect, injured workers and their families respond at their convenience.” HomeCare Connect developed its TextConnect technology internally, integrating it into its proprietary, HIPAA-compliant CareLink platform. Care coordinators text to check in with injured workers and answer their questions, and CareLink automatically texts injured workers regarding nursing visits, DME deliveries, and home modification and prosthetics updates. While piloting the service, HomeCare Connect found that 72% preferred text and that texting improved patient engagement. “Injured workers ask questions and tell us how they’re doing more often,” Wenzel said. “When patients are well informed and feel heard, they take a more proactive role in their treatment and express higher satisfaction with their care.”

GCE rolls out remote monitoring platform in Europe
HAYDOCK, U.K. – GCE Healthcare has launched a secure online platform to allow home oxygen providers in Europe to remotely monitor GCE’s Zen-O portable oxygen concentrator. The Clarity platform has been available in the U.S. since 2018. The information provided by the platform ranges from flow to device alerts, oxygen purity, device location and battery life. “With Clarity, home oxygen providers can see how their Zen-O devices are performing, giving them visibility of their POC fleet and the ability to act if need be,” said Donald Oleforo, product manager for homecare, GCE Group. GCE plans to enable its smaller Zen-O lite POC on the Clarity platform later this year.

Brightree enhances patient intake tool
ATLANTA – Brightree announced key enhancements to its patient intake management software at Medtrade Spring this week that streamline and shorten the intake process for HME providers. The company has redesigned its Comprehensive Patient Intake, available with its Business Management Software, to address top pain points, including challenges related to incomplete documentation, prequalifying products, training new employees, disseminating contextual insurance knowledge and addressing inefficient workflows. “We are excited to share the new Comprehensive Patient Intake feature, which was developed in response to many conversations with HME providers over the years and which we are confident will both expedite and strengthen the intake process, while allowing providers to spend more time delivering quality patient care,” said Rob Boeye, executive vice president of HME. Comprehensive Patient Intake now includes, among other things, a consolidated intake form with sales order creation capabilities, all available on a singe page. The form includes patient demographics, diagnostic information and qualification questions, along with contextual information explaining each requirement and recommended actions.

Altimate Medical names new leader
MORTON, Minn. – The board of directors at Altimate Medical has appointed Paul Hickey president and CEO. He succeeds Todd Tholkes, who is retiring after leading the company for more than two decades. Tholkes will remain a board member. Hickey comes to Altimate Medical with more than 25 years of experience in medical devices, including leadership roles in marketing, R&D, clinical and reimbursement. He most recently served as senior vice president of marketing and reimbursement at EnteroMedics. He also serves on the board of directors at Excelen Center for Bone & Joint Research and Education. Altimate Medical manufactures standing and related technologies, including the EasyStand and Zing brands.

BOC nabs 10th Stevie Award
OWINGS MILLS, Md. – The Board of Certification/Accreditation is a winner’s in this year’s Stevie Awards competition for sales and customer service. It’s BOC’s 10th Stevie Award since 2013. The company won a Gold Stevie Award for Sales and Customer Service in the “Best Use of Technology in Customer Service” category, recognizing its focus on improving customer service by creating a better website experience. In 2018, BOC launched a project to enhance its brand, improve its customer experience and simplify the application and renewal process for accreditation and certification, culminating in 2019, with the launch of a new website. “Our website is an important part of our customer experience and an extension of our outstanding service team,” said Judi Knott, chief strategy and marketing officer. “Our goal was to improve navigation so customers could find the information they needed quickly and easily. Our customer surveys after the launch tell us that we were successful.” The Stevie Awards were created to honor and generate public recognition of the achievements and positive contributions of organizations and working professionals worldwide. Winners were announced Feb. 28 in Las Vegas.

CQRC backs AHRQ report
WASHINGTON – The Council for Quality Respiratory Care has highlighted a new report from the Agency for Healthcare Research and Quality that found patients who use home respiratory therapies tend to experience better health outcomes than those who do not. The AHRQ, an agency within the U.S. Department of Health and Human Services, analyzed 68 studies covering 53,733 patients to evaluate home noninvasive positive pressure ventilation in adults with chronic respiratory failure in terms of initiation, continuation, effectiveness, adverse events, equipment parameters and required respiratory services. The agency specifically examined home mechanical ventilators (HMV), bi-level positive airway pressure devices (BPAP) and continuous positive airway pressure (CPAP) devices. Specifically, it found patients with COPD who used BPAP devices experienced lower mortality, intubations and hospital admissions compared to COPD patients who did not use a device, while patients who used an HMV experienced fewer hospital admissions on the whole. “The results of AHRQ’s rigorous analysis show once again the tremendously positive clinical impact home respiratory supplies and equipment have on Americans with chronic respiratory failure,” said Dan Starck, chairman of CQRC. “The importance of home respiratory therapies in significantly decreasing mortality, intubations, and hospital admissions rates cannot be overstated. Because these therapies help chronic respiratory patients live longer, healthier lives, the Department of Health and Human Services must ensure that reimbursement for home noninvasive positive pressure ventilation systems remains adequate—both in the competitive and noncompetitive bid areas.” CMS included non-invasive vents in Round 2021 of competitive bidding, slated to start Jan. 1.

Sleep apnea sufferers downplay treatment, Philips survey finds
AMSTERDAM, the Netherlands – Thirty percent of people with sleep apnea somewhat or completely agree that they don’t think it’s necessary to be treated for sleep apnea, according to a new sleep survey from Royal Philips. Thirty nine percent of them somewhat or completely agree treatment for sleep apnea is worse than the disease itself, and nearly half of them have never been prescribed CPAP therapy. Yet 71% of those who use CPAP therapy say the benefits outweigh the convenience and 71% say that their sleep has improved since starting CPAP therapy. To conduct the survey, “Wake Up Call: Global Sleep Satisfaction Trends,” Philips surveyed more than 13,000 adults in 13 countries to capture attitudes, perceptions and behaviors around sleep. More broadly, only 49% of people report being satisfied with their sleep, with worry/stress reported by 33% as the most limiting factor to a good night’s sleep, according to the survey. Interestingly, the company found fewer people in 2020 are taking action to improve sleep compared to 2019. “The decrease in people taking action to improve sleep is alarming, especially when it is clear people around the world deeply value sleep,” said Mark Aloia, PhD, Global Lead for Behavior Change, Sleep & Respiratory Care at Philips. “Sleep deficit impacts people both mentally and physically, so we need to educate people on available sleep resources and empower them with the confidence that their efforts will pay off. As we head into the next decade, Philips is focused on designing a future where technology leveraged across the entire sleep ecosystem can help people get the most out of their lives.” Factors putting quality sleep at risk stem from both social and technology distractions, the survey found. For example, despite experts’ recommendations, almost four in 10 report using their phones right before falling asleep (39%) or as soon as they wake up (39%). The desire to get help is there, however, with 60% agreeing they are interested in new information or strategies to help them get better sleep, the survey found. A new data point this year: 15% have tried or currently use either marijuana or CBD oil to better their sleep.

Convaid takes Etac name
TORRANCE, Calif. – Convaid | R82 will adopt the Etac name, nearly four years after its acquisition by the company. “By adopting the Etac name, we take the first step of making it easier to get to know our company and explore our full offering,” Convaid stated. “Many know at least one of our product brands but are not aware of our complete family of products.” Etac’s brands include Convaid, R82, Molift, Immedia and Star, which together offer pediatric and adult mobility products, assistive devices and patient handling equipment for all daily needs. Convaid noted that its name may be changing but what won’t change: shipping and billing addresses, tax identification and additional invoicing information.

Medtrade Spring attendees pick top products   
LAS VEGAS – Ageless Innovation’s Joy for All Companion Pets won the Gold Award in the New Product Pavilion Providers’ Choice Awards at Medtrade Spring. Philips Respironics won the Silver Award for its Mask Selector, and Trust Care won the Providers’ Choice Award for its Let’s Move Rollator. The awards are sponsored each year by HomeCare Magazine. Medtrade Spring took place March 3-5 at the Mandalay Bay Convention Center in Las Vegas.
 

YARMOUTH, Maine – HME providers are the “pressure release valve” for acute care facilities that are expected to strain from the number of patients who have COVID-19 and need care.

The respiratory virus, which can be deadly for older people and those with underlying conditions, has created a spike in demand for ventilators, oxygen concentrators and BiPAP devices, equipment that HME providers are well positioned to provide in the home.

“The home is the pressure release valve for the acute care facilities,” said Dan Starck, CEO of Apria Healthcare and chairman of the Council for Quality Respiratory Care. “We can more than satisfy the overflow from acute care facilities, if we have a model or payment structure that’s reflective of how we’re putting folks and equipment into homes and taking the mild COVID-19 cases out of those facilities.”

At press time, there were more than 10,442 cases of COVID-19 in the U.S., with cases in all 50 states, plus Washington, D.C., Puerto Rico, Guam and the U.S. Virgin Islands. The virus has resulted in 150 deaths so far.

Capacity

Despite a Medicare competitive bidding program that has constricted their numbers by almost 40%, HME providers say they represent a sizable network, with the ability to serve most of the country.

“We have as much capacity to deal with this crisis as possible,” said Luke McGee, CEO of AdaptHealth, a member of the CQRC. “We can get patients out of acute and sub-acute care facilities and into the home, where it’s safer to provide care and less expensive, but we need help and recognition from the government and payers.”

HME providers, collectively, are spending an estimated tens of millions of dollars to buy the equipment needed to help treat patients with the virus in their homes, knowing that even when COVID-19 cases wane in the next few months they may resurface in the fall, or another virus will infiltrate the population.

“This crisis isn’t going away,” McGee said.

Recognition

While CMS has made numerous concessions to healthcare providers in the wake of the coronavirus outbreak, few are directly related to HME, an oversight that’s hampering the very industry that’s at the heart of the response to COVID-19, HME providers say.

“(The government and other payers) need to give us the support to go out there and aggressively set up patients to keep them out of healthcare institutions,” said Stephen Griggs, CEO of AeroCare, a member of the CQRC.

Providers, led by industry groups like VGM and AAHomecare, have been quick to make recommendations to CMS and other payers, including waiving the chronic respiratory disease coverage requirements for respiratory equipment, medications and supplies when a patient is diagnosed with COVID-19 or has other acute respiratory conditions during the pandemic; delaying Round 2021 for another year; and extending the blended reimbursement rates in rural areas.

“Providers have the capacity today, but what we’re hearing from some providers, especially those rural providers, is that they’re only holding on with the 50/50 rates,” said Tom Ryan, president and CEO of AAHomecare. “We need continued relief to keep the infrastructure of the DMEPOS world intact.”

Next steps

CMS and other payers need to do right the right thing, clearing the way for HME providers to do what needs to be done under challenging conditions, they say.

“There’s this amazing ability (to provide care) out there in the home,” said Clint Geffert, president of VGM & Associates. “It’s just a matter of it being more of an option.”

Big picture, the U.S. has a long way to go to recognize the importance and value of post-acute care, HME providers say.

“Lincare, as part of Linde, is a muti-national homecare business and we’re learning from our European businesses, which are much farther along than the U.S.,” said Crispin Teufel, CEO of Lincare, a member of the CQRC. “I can tell you that in most European countries, home care plays a critical role to free up hospitals. Post-acute care is recognized as a vital part of the solution.”

WASHINGTON – The Council for Quality Respiratory Care has named Crispin Teufel as chairman of the board. Teufel, CEO of Lincare, succeeds Dan Starck. “I am honored and humbled to serve as the next chairman of the CQRC,” said Teufel. “As we navigate the unprecedented challenges imposed by COVID-19, I look forward to working collaboratively with my industry colleagues to continue delivering high-quality care to patients both during the pandemic and beyond.” The CQRC is a coalition of home oxygen therapy provider and manufacturing companies with a mission to educate members of the home respiratory care community to protect access to benefits in the Medicare program. Its current priority is working with Congress and the administration to block implementation of Round 2021 of the competitive bidding program for home respiratory supplies and services.

YARMOUTH, Maine – The best way to improve margins in an industry that suffers from constant pricing pressure is by reducing administrative burdens, said panelists during a recent discussion on “Post-pandemic: The rise of post-acute care.” 

“Everybody has way too many people involved in paper processing and billing and collections, rather than helping patients,” said Dan Starck, CEO of Apria Healthcare, during the virtual HME News Business Summit, Sept. 15-17. “And I’m hoping that what comes out of the pandemic is that CMS also realizes that it doesn’t have to be the way it used to be.”  

Starck was joined by Luke McGee, CEO and director of AdaptHealth; Stephen Griggs, founder, president, CEO of AeroCare; and Crispin Teufel, CEO of Lincare. 

How can providers reduce administrative costs? One way is by using e-prescribing platforms like DMEhub, GoScripts and Parachute Health, says McGee.  

“We need to be talking to referrals about getting off the damn fax machine,” he said. “We shouldn’t be competing on paperwork: ‘OK, I take paper; therefore, they’re happy.’ When payers come to us, they come looking for reimbursement cuts because that’s the easiest thing. If we can show them administrative cuts, we may be able to keep some of that margin for ourselves.” 

Less people, more tech 

Panelists agree that in order to grow, providers also need to fully embrace, expand and create technology, rather than “throwing more people at things,” a sentiment that was echoed in other sessions at the Summit. 

“There is no solution to any problem we have that you can answer with human capital,” said Griggs. “Technology has to answer that problem.” 

For stakeholders who say patients aren’t ready or willing to use the technology, the industry needs to stop lying to itself, McGee says. 

“That’s proving so farcical in this crisis,” he said. “We have Medicare patients and 80-year-old plus patients using telehealth, talking to their doctor on their iPhone or their android or their iPad. Patients want this, so I think we just need to deliver it.” 

It’s so important, providers may want to incentivize employees to educate patients on and get them to use digital tools. 

“After that, they’re absolutely happy and willing to deal with technology and apps,” said Teufel.