Archive: January 2012
Bidding has ripple effects beyond provider
January 31, 2012Theresa Flaherty, Managing Editor
Through a combination of luck and persistence, provider Robert Salmon has "grown a nice" diabetes supply business in rural Tallahatchie County, Mississippi.
But it's more than just a nice business for himself and his employees, he's learned. It turns out that his company, The Diabetic Shoppe, has a large impact on the local economy, according to a recent economic impact study by Mississippi State University graduate students. The study found that for every dollar generated by the provider, it adds...
Invacare, Invamex and the FDA
January 31, 2012Liz Beaulieu, Editor
I spoke briefly with Kelly Mize and Brian Ellacott of Invacare yesterday about the company's decision to move the manufacturing of its Solara line of manual wheelchairs to an existing facility in Reynosa, Mexico.
Mize, a spokeswoman, and Ellacott, vice president and general manager of Invacare North American Commercial Operations, reiterated much of what was in the mainstream media last week about the move:
That the facility in Mexico, called Invamex, already manufactures manual wheelchairs.
That...
Craftmatic courts providers
January 30, 2012Liz Beaulieu, Editor
MIAMI - After selling its adjustable beds direct to consumers for the past five years, Craftmatic Industries now wants to sell them through home medical equipment providers, too.
Traditionally, Craftmatic's business model has been to advertise heavily in the Yellow Pages, on TV and through the web, and direct customers to its 1-800 number to complete sales.
“We're looking to expand the number of units we deliver a year by offering our product to DME providers,” said Eric Kraftsow, vice...
Miss ResMed's earnings conference call yesterday? I didn't!
January 27, 2012Liz Beaulieu, Editor
We don't always have the time (or, honestly, the wherewithal) to listen to every earnings conference call by every public company in the HME industry. But when we do, it's almost always worthwhile.
This week, ResMed had its earnings conference call for the second quarter ended Dec. 31, 2011. The company's earning looked something like this: It reported $332.7 million in revenue, a 9% increase compared to the same quarter in 2010. It reported a net income of $62.9 million, an 8% increase.
Also...
In brief: Invacare sends work to Mexico, CMS clarifies credit report requirement and more
January 26, 2012HME News Staff
ELYRIA, Ohio - Invacare is moving the manufacturing of its Solara manual wheelchairs to an existing facility in Reynosa, Mexico, according to news reports last week. The move will allow the company to focus on the improvements that it must make at its facility in Elyria, Ohio, to comply with U.S. Food and Drug Administration (FDA) regulations, spokeswoman Kelly Mize told a local newspaper. Employees who were working on those wheelchairs will be moved to other assignments at the facility, she said....
Q and A: Cramton goes behind the numbers
January 26, 2012Theresa Flaherty, Managing Editor
BALTIMORE - Prof. Peter Cramton set the competitive bidding debate on fire earlier this month when he reported that the number of claims submitted for home medical equipment in Round 1 areas plunged in 2011. Cramton, an economist with the University of Maryland and an outspoken critic of the program, obtained the data through the Freedom of Information Act (FOIA). He spoke with HME News last week about some of his preliminary conclusions.
HME News: Did you expect to see such a steep decline in claims...
Diabetes: GE challenges 'four titans'
January 26, 2012Liz Beaulieu, Editor
FAIRFIELD, Conn. - GE's diagnostic imaging and other healthcare products may dominate hospitals and clinics, but with its latest product, the company hits home.
GE has signed a licensing agreement with Bionime to provide a GE-branded line of diabetes products. The first such product to launch: the GE100 blood glucose monitoring system, which is available now through home medical equipment providers and will be available some time this year through major retailers.
"This is GE's first consumer diabetes...
Stakeholders push new bid data
January 26, 2012Theresa Flaherty, Managing Editor
WASHINGTON - Industry stakeholders last week were still getting their arms around Round 1 claims data released by Prof. Peter Cramton, but early reaction was that it was powerful stuff.
"We are certainly talking about it on the Hill," said Cara Bachenheimer, senior vice president of government relations for Invacare. "It tells a very interesting story and if people aren't wanting to ask more questions and get more answers, something's wrong."
The data shows that the number of claims submitted in...
5010 troubles some
January 26, 2012Liz Beaulieu, Editor
YARMOUTH, Maine - The transition to HIPAA version 5010 on Jan. 1 has been fairly smooth for Medicare, but there have been bumps in the road for commercial payers, resulting in delayed payments to home medical equipment providers, industry sources say.
Even if HME providers and their software vendors are up to speed with 5010, when they send their claims to commercial payers that haven't made the transition yet, those claims are getting rejected by clearinghouses, sources say.
"This has been my...
Medical device tax looms
January 26, 2012Liz Beaulieu, Editor
WASHINGTON - The witching hour for an annual excise tax on medical devices is quickly approaching, and the fate of HME manufacturers is still in the hands of the IRS.
HME manufacturers are still waiting for the IRS to decide whether or not it will exempt HME from the 2.3% tax.
"We're still waiting for them to interpret and implement the provision," said Cara Bachenheimer, senior vice president of government relations for Invacare. "They said they would come out with a proposed rule last year and...