In brief: AdaptHealth settlement, Quipt raise, KabaFusion investment

PHILADELPHIA – AdaptHealth will pay $5.3 million to resolve alleged False Claims Act violations for submitting allegedly false claims to federal health care programs for respiratory devices that patients did not need or use, according to the U.S. Attorney’s Office for the Eastern District of Pennsylvania.  

The settlement resolves allegations that between 2013 and 2017 AdaptHealth, known at the time as QMES and Tri-County Medical Equipment and Supply, knowingly and willfully billed federal payers for non-invasive ventilators when a patient was, instead, prescribed and used a BiPAP machine, which is reimbursed at thousands of dollars less per year. 

It also resolves allegations that the company continued billing federal payers for vents after patients no longer needed or were using them, and double-billed those payers for some vent rentals in violation of program requirements. 

The settlement resolves a lawsuit originally brought by Michael J. Kelly, a former QMES employee, under the whistleblower, or qui tam, provisions of the False Claims Act. He will receive approximately $950,000 of the settlement. 

The claims resolved by the settlement are allegations only; there has been no determination of liability. 

NHIA supports bill, but says more needs to be done 

WASHINGTON – A bill to expand in-home care, including home infusion, for Medicare beneficiaries is a big step forward, but there’s more that can be done to improve access, says the National Home Infusion Association. 

The Expanding Care in the Home Act, introduced April 25 by Reps. Adrian Smith, R-Neb., and Debbie Dingell, D-Mich., would expand coverage for home-based services, such as home infusion, dialysis, diagnostic imaging, and personal care services. 

“The Expanding Care in the Home Act breaks down barriers in the Medicare program that make home-based care inaccessible,” said John Rademacher, chair of NHIA’s board of directors and CEO of Option Care Health, which is a member of both NHIA and Moving Health Home, an alliance of health care stakeholders. “The past few years have demonstrated that a wide array of health care services can be provided in the home at the convenience of patients and to the benefit of the health care system at large. However, providing coverage for the full scope of professional services necessary in providing that care – such as pharmacy services for home infusion – is essential to designing workable coverage.” 

The NHIA points out that the Preserving Patient Access to Home Infusion Act, as introduced in the 117th Congress, would permanently fix the home infusion benefit by requiring CMS to pay home infusion providers for professional services each day the drug is administered and removing the requirement that a skilled professional be present in the home for billing to occur. 

“NHIA appreciates the partnership with Moving Health Home in drafting this legislation that shows how a comprehensive benefit for home-based care, including infusion services, could work,” said Connie Sullivan, president and CEO of NHIA. “It’s critical that Medicare beneficiaries have the same access to contemporary care models that patients in the commercial sector enjoy. Unfortunately, under the current Medicare home infusion therapy benefit, we’ve only seen a widening gap in access, as evidenced by CMS’s most recent HIT monitoring report. We urge Congress to take action to remedy these issues and move the Medicare program further into the future of home-based care.” 

Maine: Bill introduced to exempt HME from sales tax 

AUGUSTA, Maine – Democratic Maine Sen. Troy Jackson has introduced LD 1184, a bill that seeks to exempt medical equipment and supplies prescribed by a health care provider from state sales tax, AAHomecare reports. HME providers are currently paying a consumer sales tax on prescribed medical equipment, such as nebulizers and breast pumps, essentially taxing businesses. Other states have also moved to exempt medical equipment from sales tax, including Washington state, which recently got a sales tax exemption for complex rehab technology. LD 1184 is currently in the Committee on Taxation. AAHomecare is encouraging providers to reach out to their lawmakers in support of the bill; they can find a pre-written message and contact information here. 

Fisher & Paykel receives land purchase approval 

AUCKLAND, New Zealand – Fisher & Paykel Healthcare has received approval from the Overseas Investment Office (OIO) to proceed with its acquisition of a 105-hectare site in Karaka, Auckland, where it plans to build a second campus. “We welcome this approval from the OIO,” said Lewis Gradon, managing director and CEO. “We see the Karaka campus as both an important enabler of our growth and a positive addition to an area undergoing exciting change.” Development of the new campus will occur over 30 to 40 years. The initial focus will be on implementing a private plan change to re-zone the land, designing the core infrastructure and commencing earthworks over the next five years. “Fisher & Paykel Healthcare is committed to environmental and social responsibility,” said Jonti Rhodes, vice president, supply chain, facilities and sustainability. “We understand that our role is to be good custodians of the land as we prepare it for its next journey.” F&P paid a 10% deposit of the $275 million purchase price in September 2022. It will pay the balance on staggered settlement dates: $189.5 million in May, a further $43 million in January 2026 and the final installment of $15 million in December 2026. A summary of the key terms of the sale and purchase agreement is available in this company news release. 
   
InfuSystem to offer Genadyne’s wound care line 

ROCHESTER HILLS, Mich. – InfuSystem Holdings has entered into a national distribution agreement with Genadyne Biotechnologies to offer its negative pressure wound therapy systems and supplies. InfuSystem will offer Genadyne’s complete line of wound care products, including its most advanced XLR8 Plus NPWT Pump, which delivers advanced variable pressure capabilities with a gradual wave, in conjunction with Genadyne’s proprietary XLR8 Dressing Kit with Silver, an antimicrobial contact layer to protect the wound. “We are pleased to partner with Genadyne in providing our customers with access to their advanced negative pressure wound therapy systems and supplies,” said Richard DiIorio, CEO of InfuSystem. “These products are manufactured in the U.S. This agreement represents a second NPWT device offering that will help to mitigate supply chain issues and provide our customers with multiple options. Our goal through our SI Wound Care partnership is to provide our patients and partners with a seamless offering of unique wound care products to promote healing, improve patient outcomes, and lower the cost of care. We look forward to a long and mutually beneficial relationship.” Headquartered in New York, Genadyne sells its wound care products worldwide in over 55 countries. All of its products are manufactured and assembled in multiple manufacturing plants in the U.S. 

Permobil inks deal with Vicair 

AURORA, Ontario – Permobil will serve as the exclusive distributor in Canada for Vicair’s line of cushions. “Permobil Canada is thrilled to announce that we will be partnering with Vicair,” says Mike Kozlowski, regional vice president of sales. “The addition of Vicair’s unique solutions to our portfolio supports Permobil’s commitment to deliver high-quality products that meet the individual needs of our customers. Additionally, Vicair shares Permobil’s values of innovation, research and customer satisfaction, making them a natural choice for collaboration.” Vicair cushions are available in three styles: Adjuster O2, Active O2 Low, and Vector O2. Within each cushion there are hundreds of SmartCells working together for pressure redistribution with minimal adjustments to provide temperature and moisture regulation. “It is with great confidence that we welcome this collaboration by adding Vicair to the existing Permobil seating and positioning range of products available in Canada,” said Max Rogmans, founder and CEO at Vicair. “The Permobil sales and clinical education teams are a highly skilled and motivated group of individuals who focus on achieving optimal results for the end users. We look forward to seeing the Vicair products being supported by these highly qualified professionals.”  

SBA names Sleepnet N.H. Exporter of the Year 

HAMPTON, N.H. - The U.S. Small Business Administration (SBA) has recognized Sleepnet as the 2023 Exporter of the Year for New Hampshire. This award recognizes the accomplishments of Sleepnet as an exporter of respiratory masks. Sleepnet was nominated by Adam Boltik, International Program Manager for the Office of International Commerce at the New Hampshire Department of Business and Economic Affairs. The nomination underscores Sleepnet’s participation in the SBA’s State Trade Expansion Program (STEP) program. “It is programs like NH STEP that have contributed to the opportunity for Sleepnet to be recognized as exporter of the year for New Hampshire,” said Kevin McCarthy, global sales officer.  “Like other companies that share this honor, we faced many challenges that shifted our global initiatives over the past few years.  Despite those hurdles, our team’s persistence, hard work, and drive have firmly placed us on a path of continued growth and success.” For more than 25 years, Sleepnet has manufactured and distributed hospital, pediatric and CPAP masks, as well as respirators. The company, which has almost 50 employees based in New Hampshire, has consistently increased its exported sales year over year and finished 2022 with more than 50% of revenues attributed to exports.  

Mobility City Holdings Inc. adds Denver franchise 

LITTLETON, Colo. – Mobility City Holdings Inc. has opened Mobility City of Denver. The new franchise will be led by Josh Liss, who has more than 20 years of experience in public relations, and Matt Moyers, a recently retired IP valuation expert with more than 20 years of business experience. "Our mission is to provide the mobility impaired with the freedom and independence they deserve,” said Moyers. “We understand the frustration of seeing loved ones confined due to medical and health issues. The joy that comes from helping people find freedom of movement after having it limited is an exciting way to engage with customers. With our top-notch range of mobility solutions, we help people independently get to the mailbox, run errands at the convenience store, and even stroll around the mall.” Mobility City Holdings operates 46 franchises in 27 states in the U.S. and is 100% woman-owned. It offers repair, rental and sale services for mobility products, including wheelchairs, power chairs, lift chairs, hospital beds and mobility scooters. 

Aeroflow earns HITRUST status 

ASHEVILLE, N.C. – Aeroflow Healthcare has earned certified status by HITRUST for information security for its technology platform. HITRUST Risk-based, 2-year (r2) Certified status demonstrates that the organization's national offices have met demanding regulatory compliance and industry-defined requirements and is appropriately managing risk. "This achievement is a testament to our unwavering commitment to ensuring the highest standards of security and compliance in the health care industry," said Casey Hite, CEO at Aeroflow Healthcare. "We are proud to provide our customers with the assurance that their sensitive data and information are protected with the utmost care and diligence. This certification reinforces our position as a trusted partner in the healthcare community and sets us apart as a leader in the industry." 

Quipt raises $40.2M 

CINCINNATI – Quipt Home Medical has closed its previously announced bought deal public offering of common shares. The company issued a total of 5,129,000 common shares at an issue price of $7.85 per share for aggregate gross proceeds of $40,262,650. Concurrent with the closing of the offering, the underwriters also completed a brokered private placement, on a commercially reasonable best-efforts basis of 280,000 common shares at the issue price, for aggregate gross proceeds of $2,198,000 for aggregate gross proceeds of $42,460,650. Quipt will use the proceeds for repayment of debt, future acquisitions, working capital and general corporate purposes. The offering was conducted through a syndicate of underwriters led by Beacon Securities Limited and Canaccord Genuity Corp., on behalf of a syndicate of underwriters, including Echelon Wealth Partners Inc., Raymond James Ltd., Stifel GMP, Eight Capital and Leede Jones Gable Inc. 

KabaFusion receives investment from health system 

LEXINGTON, Mass., and Houston – KabaFusion, which provides a broad range of essential chronic and acute infusion therapies in 44 states through its nationwide network of home infusion pharmacies, alternative infusion sites and home health agencies, has received an investment from Houston-based Memorial Hermann Health System. “We are thrilled to have Memorial Hermann join our investor group,” said Dr. Sohail Masood, founder and CEO of KabaFusion. “We share a similar focus in delivering the highest quality care to patients in our communities and look forward to partnering with them as we continue to expand our services and geographic reach.” Memorial Hermann is one of the largest not-for-profit health systems in Texas. Its 6,700 affiliated physicians and more than 31,000 employees provide a personalized and outcome-oriented experience across more than 265 care delivery sites throughout the Greater Houston area. 

AIC re-opens pharmacy 

VALDOSTA, Ga. – Advanced Infusion Care (AIC), a division of AIS Healthcare, has announced the reopening of its newly designed pharmacy in Valdosta, Ga., it’s largest to-date, with nearly 40 licensed professionals serving about 1,400 patients. The state-of-the-art pharmacy expands the home infusion provider’s footprint in the Southeast and enhances its ability to service patients across the United States, it says. “The Valdosta pharmacy will enhance our industry leading regulatory compliance, quality and operational flow allowing for sustained growth and expansion into new markets,” said Jud Hall, president at AIC. “This new space will provide optimal working conditions for our team and allow us to continue achieving the highest levels of safety and quality for the patients we serve." AIC originally purchased the Valdosta location in 2017. The company says the pharmacy’s updated layout will benefit operations by expanding production areas and, ultimately, boosting staff efficiency. AIC says its patients benefit from 24/7 access to dedicated clinical and support staff, including clinical pharmacists, infusion nurse specialists and intake managers.  

Medline partners with Martha Stewart on new line 

NORTHFIELD, Ill. – Medline has teamed up with Martha Stewart on a new line of design-inspired bed, bath and around-the-home safety and mobility products. The Martha Stewart Custom Collection features prints and patterns in sophisticated colors and finishes, making these products fashion conscious, the company says. The collection includes the Gingham Offset Walking Cane and the Momentum Walker. “We are excited to enter into this unique partnership that brings together Medline – health care’s #1 choice in mobility and bath safety aids – with the exceptional design of Martha Stewart,” says Medline Senior Marketing Manager Dawn Freitag. “Her signature style has always set the standard for better, more enjoyable living, and this line of mobility and bath safety products is no exception. We believe these fashionable, modern, designs along with our top-rated Medline quality, and value pricing, will help our customers live their happiest, healthiest life with exceptional safety, security, and style.” Other products in the collection include a Euro-style shower chair, chrome grab bar, premium bathmat, foam wedge cushion, adjustable bed assist bar, height-adjustable overbed table, washable under pad, foam lumber and foam coccyx cushions. The products are available at Amazon and Walmart.com. 

Cardinal Health unveils two distribution centers 

DUBLIN, Ohio – Cardinal Health will host ribbon cutting celebrations for two new distribution centers in central Ohio in April, with both facilities focused on supporting the company’s U.S. Medical Products and Distribution (USMPD) and at-Home Solutions businesses. The openings are part of Cardinal Health’s multi-year warehousing and modernization plan for its Medical Segment to support business growth and expansion and to accelerate service for existing customers. "Central Ohio remains imperative to our distribution and warehousing ecosystem due to its prominence as a transit hub," said Steve Mason, CEO of Cardinal Health's Medical Segment. "Our latest investment in two new distribution centers is not only a commitment to growing our distribution footprint, but also a commitment to investing back into our local economy." Located about 15 miles apart just south of Columbus, the new facilities offer more than 782,000 square feet of modern warehouse capabilities. The USMPD facility, located in Groveport, will be equipped with Locus robotics and a spacious innovation lab designed to test new technologies and streamline fulfillment processes. The at-Home Solutions facility, located in Grove City, will act as a customer showcase location and is the first warehouse to feature AutoStore, an automated fulfillment technology from Swisslog. 

Permobil releases sustainability report 

LEBANON, Tenn. – Permobil’s CO2 emissions fell 30% in 2022 compared to 2021, according to its second annual sustainability report, with a goal of 70% by 2030. Permobil’s health and safety record also continued to improve with a drop of 14 lost-time accidents to four across the entire company, according to the report. “A culture of sustainability is starting to embed itself into Permobil,” said Camilla Andersson, director of sustainability. “At all levels in the company and in every market, we are seeing colleagues come up with ideas of what they can do to operate more sustainably, everything from supporting local community support programs in the US to composting in Australia to reducing water use in production of our cushion.” Overall, the report details the company’s performance against seven focus areas, as defined by a 2019 materiality assessment. It includes case studies on Permobil’s “My Capability” campaign and reforms to its packaging and shipping solutions, as well as portraits of two inspiring individuals who use Permobil products. Read the full report here. 

Welnfuse forms advisory council 

DALLAS – Welnfuse, a software and technology platform for infusion therapy and medication delivery in the United States, has established the Infusion Technology Advisory Council (ITAC). The council assembles industry leaders from the infusion center, home infusion, specialty pharmacy and health care technology sectors to support the company’s continued growth and expansion. "We are very excited to welcome this group of renowned industry leaders from across the nation," said Bryan Johnson, co-founder and CEO of Welnfuse. "This team of infusion and technology professionals will help guide, educate and advance WeInfuse's efforts in the industry to provide the most innovative, capable and user-friendly solution possible." Johnson and Reece Norris, co-founder and COO, will lead ITAC and serve as its co-chairmen. Michael Dal Bello and Ceron Rhee, WeInfuse board members and partners at Curewell Capital, will also join ITAC. Other inaugural board members include Jeff Johnston, co-founder and former CEO of CPR+; George Lazenby, former CEO of Emdeon (now Change Healthcare/Optum); Rob Allen, former president of Coram CVS Specialty Infusion Services; Dan Teich, PharmD, vice president at AmerisourceBergen; and Cannon Loughry, COO of TwelveStone Health Partners. 

Withings sponsors ADA project  

BOSTON – Withings Health Solutions has announced that it is a national sponsor of Project Power from the American Diabetes Association. The project is a lifestyle change program to raise diabetes awareness and offer diabetes risk reduction education in high-risk and vulnerable communities nationwide. As part of its project, participants will be given the Withings Body Comp Scale, a smart scale that can accurately measure multiple biomarkers, such as body composition, cardiovascular assessment and electrodermal activity assessment. "We are really proud to be partnering with the American Diabetes Association and excited about the promising impact that Body Comp could have on Project Power and its participants," said Antoine Robiliard, vice president of Withings Health Solutions. "Our mission at Withings Health Solutions is to help patients and health professionals improve outcomes. By exploring new measurements with coherent coaching, we help to ensure the people eagerly collect and act on the health information that previously may be missed." Project Power is powered by HabitNu, a long-term partner of Withings that provides evidence-based solutions, AI-based technology, live coaching and personalized nudges to build healthy habits to help prevent and manage chronic diseases such as Type 2 diabetes and hypertension. The project is a no-cost lifestyle change program that tackles pre-diabetes and Type 2 diabetes to help reduce its consequences. The ADA first launched the initiative for kids to tackle childhood pre-diabetes and in 2022 extended it to adults living with Type 2 diabetes or pre-diabetes or those at high risk of diabetes.