Archive: February 2011
Rotech reduces losses, grows patient base
February 28, 2011HME News Staff
ORLANDO, Fla. - Rotech Healthcare ended 2010 on a strong note.
The provider on Feb. 28 reported net revenues of $496.4 million for 2010 compared to $479.9 million for 2009, an increase of $16.5 million. It reduced net losses from $21.1 million in 2009 to $4.2 million in 2010.
Rotech also reported net revenues of $123.8 million for the three months ended Dec. 31, 2010, compared to $123.2 million for the same period last year. It reduced losses from $4.7 million for the fourth quarter of 2009 to...
The competitive bidding chronicles: Month 2
February 28, 2011Jennifer Keirn
RxStat ready to 'jump in'
The time for wait-and-see at RxStat is over.
"Now's the time to jump in," said president Sam Jarczynski.
Last month, Jarczynski took an understandably cautious approach to marketing in the Orlando competitive bidding area (CBA), where RxStat is a contract supplier for sleep. He'd ramped up for the original Round 1, money he felt was "wasted" when it shut down.
But now Jarczynski's entering the fray, starting with becoming a subcontractor to a non-contract supplier...
CRMC sets priorities
February 27, 2011Liz Beaulieu, Editor
WASHINGTON - Members of AAHomecare's Complex Rehab and Mobility Council (CRMC) finalized their priorities for 2011 recently. What they came up with, says Tim Pederson, past chairman, includes but goes beyond the "white noise" of competitive bidding. "We wanted to seize on some different opportunities," he said.
Audits
"We're concerned that CMS is acting in a manner contradictory to its principles in the way that they're going after audits. We feel we need to hold them accountable."
Documentation
"We...
Infusion and valuations
February 27, 2011Liz Beaulieu, Editor
Here's a roundup of what's hot and what's not in the M&A market for HME right now:
What's hot?
Home infusion was a well-performing niche in the HME industry in 2010 and industry watchers expect that to continue in 2011. There's one little problem, they say.
"There's significant buyer interest, because they aren't included in competitive bidding and because they took their cuts years ago," said Bob Leonard, an analyst with The Braff Group, a Pittsburgh-based M&A firm. "But there aren't too many...
Race to be biggest
February 27, 2011Liz Beaulieu, Editor
ROCKY HILL, Conn., and ST. LOUIS - Within months of each other, two national complex rehab companies received injections of capital from private equity firms, allowing them to speed up their growth.
In January, Rocky Hill, Conn.-based ATG Rehab brought on Boston-based Audax Private Equity as a majority partner. In November, St. Louis-based United Seating and Mobility (USM) brought on Philadelphia-based LLR Partners as an equal partner.
"This will give us the cash to continue to grow, but do it...
Retail is 'new normal'
February 27, 2011John Andrews
LAS VEGAS - While the concept of HME retail has been around for decades, many providers have viewed it as something that is "nice to do" rather than as a business strategy critical to their survival. But with competitive bidding now in place, the loss of Medicare reimbursement has become harsh reality for many providers and they need to find new revenue streams to stay in business.
Instead of lamenting the loss of an entitlement program, HME companies should embrace a new retail-driven era, say...
Kathleen Jaeger: Pharmacists 'stand ready to help'
February 27, 2011Theresa Flaherty, Managing Editor
With issues like competitive bidding, diabetes mail order and reimbursement cuts posing threats to community pharmacists, it's a challenging time to take on the job of executive vice president and CEO of the National Community Pharmacists Association (NCPA). But Kathleen Jaeger, who did just that in November, saw only a "wonderful opportunity." Jaeger, a pharmacist and lawyer by training, spoke with HME News recently about the future she sees for independent pharmacists.
HME...
Public relations: Keep doing brochures
February 27, 2011David Ball
Q. Are printed marketing brochures still necessary?
A. The answer is a resounding yes. It is true that websites can serve as a major marketing resource, along with social media sites. Despite these online resources, it is nice to be able to let a referral source or customer walk away with a brochure, which they can glance at when they have time or share with a colleague or friend or put in a file for other office staff to view when needed.
When that referral source or customer walks away with the...
NRRTS 'raises the bar'
February 27, 2011Liz Beaulieu, Editor
TRINIDAD, Colo. - NRRTS is shaking up what it means to be a registrant.
The group announced recently that beginning Jan. 1, 2012, it will begin requiring registrants to complete one continuing education unit (CEU) per year, which represents 10 contact hours.
"In the next two years, you're going to see an effort by NRRTS to really raise the bar and look at all sorts of ways to make sure registrants are best qualified," said Simon Margolis, executive director of NRRTS.
For this year only, registrants...
Colorado: Bill would clear up confusion over sales tax
February 27, 2011Theresa Flaherty, Managing Editor
DENVER - HME providers here are confident that a bill to exempt durable medical equipment from the state sales tax will be a no-brainer for state lawmakers.
"We have the right folks in our camp (and the right message)," said Doug Coleman, president of the Colorado Association of Medical Equipment Services and owner of Loveland-based Major Medical Supply. "The people that need these services are generally elderly or at-risk folks that are not financially well-heeled."
Introduced in January, H.B.11-1091...