In brief: AdaptHealth acquisition, Roche settlement, AAHomecare conference

MERION STATION, Pa. – The owner of OxygenWorks, Philomena Baylor, has divested her business to AdaptHealth. 

OxygenWorks, based here, is a privately owned, multi-generational company providing a broad spectrum of respiratory equipment and supplies to patients in Pennsylvania, Delaware and New Jersey, according to a press release from the company’s adviser, Central HealthCare Group. 

Central HealthCare Group is a Philadelphia-based investment banking firm representing public and privately held health care companies. 

The firm’s leader, Paul Mudrick, has advised companies throughout the United States and China, and has successfully originated and completed 51 transactions for private, public and nonprofit companies representing an aggregate transaction value of more than $500 million, according to the release. 

Prior to founding Central HealthCare Group, Mudrick was president and CEO of more than 24 diversified health care businesses, which were consolidated into six corporations and sold to companies like Apria, Rite Aid and Lincare. 

Roche, Priority Healthcare settle for $43M 

INDIANAPOLIS - Priority Healthcare Corp. has agreed to pay $43 million to Roche Diagnostics to settle allegations that it filed fraudulent claims for diabetes testing supplies. 

In a lawsuit filed in September 2018, Roche, a manufacturer of diabetes testing supplies, says it paid $37.5 million in “unwarranted” rebates to insurance companies and their pharmacy benefit managers for claims submitted by PHC, a network of pharmacies in Mississippi, Alabama and Arkansas, between Jan. 1, 2013, and the end of the first quarter of 2018. 

PHC allegedly submitted nearly 800,000 insurance claims for blood-glucose test strips, many of which were for retail test strips, when not-for-retail test strips were actually dispensed. 

In 2019, a judge for the U.S. District Court for the Northern District of Alabama, granted a motion to freeze certain assets of PHC. 

U.S. Rehab publishes white paper on telehealth 

WATERLOO, Iowa – U.S. Rehab has posted a white paper called “Telehealth for Complex Rehab: Is it Effective?” to its website. 

“Telehealth has been a great tool for complex rehab technology professionals throughout the COVID-19 pandemic,” said Greg Packer, president of U.S. Rehab. “But what we have seen is that telehealth should be available to use outside of the public health emergency.” 

U.S. Rehab notes that studies have indicated that the use of teleahealth in complex rehab indicates similar or, in some cases, better outcomes to in-person services, and that patients often prefer telehealth. 

Packer predicts that using telehealth will increase over the next few years and that providers should prepare now to provide this service and understand the situations where telehealth is best suited. 

The white paper includes commentary from Packer; Dr. Mark Schmeler, associate professor and director of the continuing education program in the Department of Rehabilitation Science and Technology at the University of Pittsburgh; and Kyle Walker, director of operations of assistive technology at VGM Homelink. 

U.S. Rehab’s membership encompasses more than 1,3000 independently owned rehab locations. 

AAH advocates in several states 

AAHomecare has asked the Texas Health and Human Services Commission to implement processes to ensure that medically fragile children covered under the state’s Star Kids program can continue to be served by their current DMEPOS provider, if a change in providers is determined to put patients at unnecessary risk…AAHomecare is working with stakeholders in South Carolina to roll back reimbursement cuts by Centene of, on average, 65% of the Medicaid fee schedule and 75% of Medicare rates. The association says the cuts are happening in other states, too, like Arkansas. 

Repair Authority responds to surge 

STRONGSVILLE, Ohio – Repair Authority in February expanded its headquarters and repair facility in Strongsville, Ohio, as part of its response to the current surge in demand for oxygen concentrators. The company added an additional 10,000 square feet to the facility, bringing it to a total of 35,000 square feet, and installed several new production lines. It’s also hiring additional repair techs. Repair Authority uses the facility to repair oxygen concentrators – portable and stationary – as well as CPAP devices, ventilators, liquid oxygen systems, Homefill units and other respiratory equipment for HME dealers nationwide. It also provides direct-to-patient CPAP repair through its CPAP Medic service. The company is an authorized warranty repair center for Philips Respironics, ResMed, Invacare and Drive DeVilbiss. 

AAH sets date for conference, adds D’Andrea to committee 

AAHomecare’s 2021 Washington Legislative Conference will take place virtually on Sept. 29. The daylong event will include virtual meetings with members of Congress. AAHomecare is partnering with Advocacy Associates to deliver a virtual meeting platform that will schedule meetings, provide background on each of the legislators, and allow attendees to connect directly with members of Congress and key legislative staffers. The association will provide more details this spring...Larissa D’Andrea, vice president of global government affairs and market access for ResMed, has accepted an open position on AAHomecare’s executive committee. D’Andrea was previously a member of the association’s board of directors and its HME/RT Council. She was also instrumental, AAHomecare says, in the Competitive Bidding Bid Smart campaign in 2019. 

Tomorrow Health extends transition period 

NEW YORK – Tomorrow Health and Geisinger Health Plan will extend the transition period for a new referral program in Pennsylvania from March 1 to May 1. Referral sources should send orders first to Tomorrow Health, but during the transition, DME suppliers should directly service and fulfill any orders sent directly to them, and then submit all relevant documentation via fax to Tomorrow Health. After the transition ends, new DMEPOS orders must be submitted by referring providers or members through Tomorrow Health to be reimbursed by the health plan. Industry stakeholders, including AAHomecare and PAMS, have sought more transparency on the referral process and say providers in the state have seen a significant downturn in referrals since Tomorrow Health implanted its referral program in January. 

Insulet posts Q4 revenue increase, net lossI 

ACTON, Mass. – Insulet  reported revenues of $246.1 million for the fourth quarter of 2020, an increase of 17.5% over the same quarter in 2019. Full-year revenues were $904.4 million, an increase of 22.5% compared to the previous year. For the quarter, U.S. Omnipod revenue was $231.1 million and International Omnipod revenue was $149.2 million. Omnipod revenue for the full year was $834.9 million: $526.9 million in U.S. Omnipod revenue, and $308 million in International Omnipod revenue. The company reported a net loss of $17.1 million for the fourth quarter, and adjusted EBITDA of $35.3 million. Highlights for the company include hitting a milestone of 250,000 customers globally for its Omnipod System and completing the full international commercial launch of its Omnipod DASH. “The fourth quarter marked a strong finish to another successful year for Insulet,” said Shacey Petrovic, president and CEO. “In the face of extraordinary challenges, our team executed our strategy, delivered consistently strong growth, and advanced our key imperatives. We are very proud to celebrate 250,000 customers trusting in Omnipod to simplify their diabetes management and we remain dedicated to our mission to improve the lives of people with diabetes across the globe.” 

ISS to hold series of webinars 

PITTSBURGH – The 37th International Seating Symposium in March will launch a webinar series, “Prelude to Pittsburgh,” to offer education ahead of its in-person event scheduled to take place Oct. 28-30. The first webinar, “Pandemic Recovery: Lessons Learned and Future Strategies,” will be held Friday, March 19, from 3:00-4:00 pm EST, with a virtual happy hour immediately following the session. Three additional webinars will follow in April, May and September. CEUs will be available. For more information on the webinars or to register, go here. 

Quality Biomedical launches three new programs 

BOULDER, Colo. – Quality Biomedical has introduced three new programs to help OEMs increase sales, and manage rentals and demo/evaluation units, as well as better control the sale of refurbished products. “Each of these is a problem for OEMs and providers will benefit, as well, when the OEMs offer these programs,” said Jim Worrell, chief commercial officer. The company has introduced a “OEM Rental Management Program” to help manufacturers of respiratory equipment to improve profit margins and gain market share; a “Refurb Management Program” to help manufacturers of respiratory equipment generate new revenue streams and control the sale of refurbished equipment; and an “OEM Demo Management Program” to help manufacturers of biomedical equipment better manage their flow of demo and evaluation equipment. 

VGM releases wound care guide 

WATERLOO, Iowa – VGM Wound Care, a division of VGM & Associates, has released its Wound Care Program Guide. The resource walks members through deciding whether or not a wound care program is right for their business, as well as starting and developing a wound care program. It also provides additional resources and contacts. “This guide is designed to help our members grow their wound and skin care business,” said Heather Trumm, BSN, RN, CWOM, director of VGM Wound Care. “The HME community provides patient-focused care every day.” A companion piece to the guide is also being developed that focuses on all the wound care vendor partners available to members and how they can offer support in the space. Members can download a copy of the guide in the members-only portal. 

 Aultman Home Medical opens fifth location 

ALLIANCE, Ohio – Aultman Home Medical Supply has opened a new location on the campus of Aultman Alliance Community Hospital, according to Salem News. It’s the fifth location for the company and its first in eastern Stark County. “We are excited that our new location allows us to conveniently serve patients who reside in Alliance and other communities toward the eastern half of the county,” Maria Dillon, director, told the newspaper. Aultman offers respiratory products like aerosol nebulizers, CPAP and BiPAP machines, and portable oxygen concentrators. It also offers walkers, wheelchairs, breast pumps and hospital beds. 

 Oventus reports significant growth 

BRISBANE, Australia – Oventus Medical has booked revenues of $550,232 for the six-month period ended Dec. 31, a 192% increase over the prior period. The company credits growth driven by lab-in-lab sites that remained operational during the pandemic, continuing to scan patients; an expansion of the telehealth extension of the lab-in-lab program; and an increase in direct sales to dentists who delivered treatments in their own practices, as well as through lab-in-lab programs. “We are very pleased with how our lab-in-lab model has performed through what has been one of the most volatile and unprecedented respiratory pandemics in history,” said Dr. Chris Hart, founder and CEO. “Despite the hampering of footfall across North America, we’ve still managed to grow device sales by 143% when compared to the same period last year. Based on what we currently know and correlated with a drop in the rate of infection, we see an improved outlook for physical patient appointments in North America.” Cash receipts for the period were $415,560, up 109% over the prior period. Oventus reported that four new sites have signed on to the lab-in-lab model, including two new sites with an existing customer, Careica Health; one with Specialized Sleep in California; and one with PEAKsleep in London, Ontario. The company also reported that the first member of the VGM Group is expected to go live with Oventus in the next 90 days. 

Rx Redefined attracts funding 

OAKLAND, Calif. – Rx Redefined, which offers a platform that allows physicians to directly manage the distribution of DMEPOS to their patients, has completed its $2 million seed funding round, led by Silverton Partners, with participation from Saturn Five. “The status quo within the DMEPOS marketplace creates unnecessary distribution delays and often allows for bait-and-switch tactics, which wastes patient and physician time and negatively impacts health care outcomes,” said Brandon Boots, co-founder and CEO. “To recreate the industry, it’s going to take more than just making the information more readily available. It’s going to take empowering physicians to directly connect with their patients.” Rx Redefined says it offers physicians an integrative platform that leverages technology to streamline various health care processes, enabling them to directly order, disseminate and bill for equipment. Silverton says its investment will allow Rx Redefined to grow “to the next level, while empowering patients and medical professionals.” “We are big believers in Rx Redefined’s ability to execute upon their mission to create transparency within the health care marketplace,” said Roger Chen, partner. 

3B Medical launches POC giveaway 

WINTER HAVEN, Fla. – 3B Medical will give away one Aer X portable oxygen concentrator every month for the next six months to a deserving patient that is struggling, has a valid oxygen prescription and would be ambulatory if they had a POC. The company is looking to partner with DME providers to identify patients in most need. “For patients without insurance or with coverage that will not cover a POC, getting a free Aer X may be life changing,” the company says. “Getting to the grocery store, church or spending time with a grandchild at the park, are all made easier for patients with oxygen with a portable oxygen concentrator.” To enter the contest, patients only have to tell their story and how the Aer X might improve their life. FMI, go here.