In brief: AdaptHealth’s static revenue, bid program’s impact, AOM’s Western expansion
By HME News Staff
Updated 9:06 AM CST, Wed November 6, 2024
PLYMOUTH MEETING, Pa. – AdaptHealth reported third quarter net revenue of $805.9 million compared to $804 million, an increase of 0.2% year over year.
Net income attributable to AdaptHealth was $22.9 million vs. a net loss of $454.1 million. Adjusted EBITDA was $164.3 million vs. $161.2 million, an increase of 1.9%
“I continue to be optimistic about the road ahead,” said Suzanne Foster, CEO. “We have identified growth opportunities, we are assembling a high performing team and investing in areas that allow us to serve even more patients in their homes.”
AdaptHealth is updating previous financial guidance for fiscal year 2024 as follows:
- Net revenue of $3.220 billion to $3.260 billion, from $3.255 billion to $3.315 billion
- Adjusted EBITDA of $655 million to $675 million, from $660 million to $700 million
- Free cash flow of $175 million to $195 million, from $160 million to $180 million
During the quarter, AdaptHealth closed on its agreement to sell certain custom rehab technology assets to National Seating & Mobility.
AOM strengthens presence out West
ARLINGTON, Va. – AOM Infusion is expanding its presence in Arizona, Michigan and Washington. The company says it is committed to developing strong partnerships with local health care providers, health systems and payers across the Southwest, Pacific Northwest and Midwest. “We are really proud of the growth the company has experienced over the past year,” said Keyur Mehta, CEO of AOM Infusion. “Strengthening our presence in these regions and strategically adding ambulatory infusion suites within our existing markets enables us to provide more options for our patients to receive the best care.” AOM Infusion has pharmacy licenses in all 50 states and has the ability to provide care across the United States. The company says it is investing in its team and infrastructure, expanding its reach and connections to the communities it serves. “Home is the foundation of our service model and we are proud to expand our reach to ensure even more patients can receive a high level of quality care where they are most comfortable that suits their needs best,” said Sheila Iacono, RN, MSN, CRNI, IgCN, who is the vice president of nursing operations for AOM Infusion. "Our specialized, hi-tech nurse and pharmacist clinicians are here to support our growing patient base with seamless care and communication every step of the way to improve health and support optimal outcomes." AOM Infusion serves patients with more than 80 different chronic conditions, with long-term treatment managed by clinical pharmacists and administered by skilled infusion nurses.
Bid program had no significant impact on access, study finds
CHICAGO – Medicare's phased implementation of the competitive bidding program in 2011 and 2013 did not reduce oxygen use, according to the findings of a new study published in JAMA Internal Medicine on Oct. 28. In the cohort study of 5,753,308 Medicare beneficiaries with COPD, the program was associated with only a 0.19 percentage point reduction in new oxygen prescriptions and a 0.77 percentage point reduction in oxygen discontinuations, researchers say. As such, the currently proposed legislation to remove supplemental oxygen from the program and return to a fee schedule model may not improve supply and patient access and may lead to higher spending, they say. “In this study, among beneficiaries with COPD, the Medicare CBP was associated with differentially lower spending but not differential changes in oxygen use or clinical outcomes,” the study concluded. “This study did not find evidence supporting ongoing policy efforts to remove supplemental oxygen from the CBP.” The study used a difference-in-differences (DID) method to evaluate the association between implementation of the program and the outcomes of interest. Patients aged 65 to 100 years with COPD living in bid areas were compared with those living in areas where the program was not yet or never implemented. The study included 100% fee-for-service Medicare data of beneficiaries enrolled between July 1, 2009, and December 31, 2015. The data analysis was performed between June 6, 2023, and August 16, 2024.
- Related: Thirty leading patient, provider and professional organizations have united to call on Congress to pass the Supplemental Oxygen Access Reform or SOAR Act (S. 3821/H.R. 7829), which would, among other things, remove supplemental oxygen from Medicare’s competitive bidding program.
OIG calls Medicare Advantage payments into question
WASHINGTON – The Office of Inspector General found that diagnoses reported only on health risk assessments and HRA-linked chart reviews and not on any other service records in 2022 resulted in an estimated $7.5 billion in Medicare Advantage risk-adjusted payments for 2023. “The lack of any other follow-up visits, procedures, tests or supplies for these diagnoses in the MA encounter data for 1.7 million ME enrollees raises concerns that either 1) the diagnoses are inaccurate and thus the payments are improper or 2) enrollees did not receive needed care for serious conditions reporting only on HRAs or HRA-linked chart reviews,” the agency stated. In-home HRAs and HRA-linked chart reviews may be more vulnerable to misuse because these tools are often administered by MA companies or their third-party vendors and not the providers of enrollees, the OIG stated. Diagnoses reported only on these types of records heighten concerns about the validity of the diagnoses or the coordination of care for MA enrollees, it stated. Among the OIG’s recommendations are to impose additional restrictions on the use of diagnoses reported only on in-home HRAs or chart reviews that are linked to in-home HRAs for risk-adjusted payments; conduct audits to validate diagnoses reported only on in-home HRAs and HRA-linked chart reviews; and determine whether select health conditions that drove payments from in-home HRAs and HRA-linked chart reviews may be more susceptible to misuse among MA companies. CMS concurred with the OIG’s third recommendation but not the other two recommendations. FMI: https://oig.hhs.gov/documents/evaluation/10028/OEI-03-23-00380.pdf.
Disability groups launch safe travel campaign
NEW YORK – United Spinal Association, the Service Employees International Union (SEIU), the American Association of People with Disabilities (AAPD) and the National Disability Rights Network (NDRN) are urging Transportation Secretary Pete Buttigieg to build on the landmark $50 million fine on American Airlines and issue a final rule, “Ensuring Safe Accommodations for Air Travelers With Disabilities Using Wheelchairs,” with the strongest possible training requirements. Those requirements include:
- Enhanced competency-based training where airlines and their service providers must certify that their employees have demonstrated their ability to perform the work before they are allowed to engage a passenger who uses a wheelchair.
- Active, vigorous enforcement of airline compliance.
- A partnership between airlines and their service providers, disability rights groups, and the union representing service workers to develop and implement disability advocate-led training, drawing on the union’s experience of delivering quality training to its members.
“Service workers transfer us to an aisle chair that can fit down the narrow width of the aircraft aisles, then push us on board, and then transfer us again into a passenger seat. A lot can go wrong with all those transfers,” said Vincenzo Piscopo, president/CEO of United Spinal. “And believe me, it does – really terrible things happen to wheelchair users way too often. Airlines outsource this work to airline service providers, who are forced to compete to offer the lowest price instead of the best service. Our service is reduced to a race to the bottom system.” A virtual campaign call in October featured the voices of national leaders, workers and passengers who use wheelchairs, giving them a platform to discuss the urgent need for federal action to protect the safety and dignity of passengers with disabilities and the workers who support them. It was moderated by Ari Ne’eman, consultant to SEIU and an assistant professor at the Harvard T.H. Chan School of Public Health. “We believe that protecting the safety and dignity of passengers with disabilities and advancing the safety and dignity of the service workers who support them are inextricably linked,” he said. “The disability rights and the labor communities have shared interests and are collaborating to advance our common dignity and respect.”
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Related: United Spinal Association applauds the $50 million fine levied against American Airlines by the U.S. Department of Transportation to addresses the airline’s longstanding mistreatment of passengers who use wheelchairs.
Veterans Medical Supply receives HIRE Vets award
ST. PETERSBURG, Fla. – Veterans Medical Supply was one of 839 recipients of the 2024 HIRE Vets Medallion Award during a recent virtual award ceremony presented by the U.S. Department of Labor. The Honoring Investments in Recruiting and Employing American Military Veterans Act Medallion Program is the only federal award program that recognizes employers who successfully recruit, hire and retain veterans. "Winning a HIRE Vets Medallion Award is a proud moment for Veterans Medical Supply,” said Michael Schwandt, president and CEO, who is a U.S. Marine Corps veteran. “It reflects our commitment to not only serve those who have served, but also to actively include them in our workforce. Veterans bring invaluable skills, discipline and resilience to our team, and we are honored to provide them with meaningful career opportunities. This award is a testament to our ongoing mission to support veterans beyond their service years." Recipients of the 2024 HIRE Vets Medallion Award meet rigorous employment and veteran integration assistance criteria, including veteran hiring and retention percentages; availability of veteran-specific resources; leadership programming for veterans; dedicated human resource efforts; and pay compensation and tuition assistance programs for veterans. Founded in 2002, Veterans Medical Supply is a Service-Disabled Veteran-Owned Small Business (SDVOSB) specializing in manufacturing DME, oxygen equipment, sleep diagnostics and CPAP therapy devices. It has Federal Supply Schedule (FSS) contracts for DME and CPAP equipment.
American Lung Association launches COPD campaign
CHICAGO – The American Lung Association has launched the “Learning to Live with COPD” campaign to help people newly diagnosed with chronic obstructive pulmonary disease live better, more active and fulfilling lives. "Managing COPD can be overwhelming, particularly for those newly diagnosed," said Harold Wimmer, president and CEO of the American Lung Association. "Through our new 'Learning to Live with COPD' campaign, we aim to provide individuals with the tools they need to better understand their disease, work with their health care providers, and access the latest treatment options. Education and support are key to living well with COPD, and we are proud to expand on these critical resources through this campaign." Key components of the "Learning to Live with COPD" campaign include:
- Education on the latest COPD guidelines and treatment options.
- Empowering patients to discuss symptoms and disease progression with their health care providers.
- Providing resources that are accessible to populations most impacted by COPD, including women and rural communities.
- The introduction of a Lung Health Navigator through the Lung HelpLine, offering personalized COPD educational sessions.
As part of the campaign, the American Lung Association will host a free webinar on Nov. 20 from 3 p.m. to 4 p.m. EST. Dr. Jordan Lee, a pulmonary and critical care specialist, will present insights on effective COPD management and the latest treatment options.
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