Skip to Content

In brief: Guthrie taps DASCO, VGM buys SleepGlad, Inogen exceeds guidance 

In brief: Guthrie taps DASCO, VGM buys SleepGlad, Inogen exceeds guidance 

CORTLAND, N.Y., and WESTERVILLE, Ohio – Guthrie, which has close to 1,000 primary and specialty care physicians and advance practice practitioners, and DASCO Home Medical Equipment are teaming up on a joint venture to better serve patients, according to a press release.  

Per the JV, DASCO will begin management and day-to-day operations of all Guthrie Med Supply Depot locations effective March 1. 

“Guthrie’s core business, our mission, is quality patient care, and durable medical equipment is critical to meeting all of our patients’ needs,” said Paul VerValin, executive vice president and COO of The Guthrie Clinic. “As our only for-profit business, Guthrie Med Supply Depot has unique business needs that can be best managed by a company with extensive expertise and experience. We have found this partner with DASCO.”   

Guthrie’s practitioners conduct more than 1.5 million patient visits each year in 29 communities in Pennsylvania and New York. 

DASCO, which has locations across the South and Midwest, already manages the med supply businesses of other health systems and hospitals, including The Ohio State University Medical Center and Tampa General Hospital. 

“We are honored to be partnered with The Guthrie Clinic, a health system known for its exceptional care and innovation,” said Jason Seeley, CEO of DASCO Home Medical Equipment. “We aim to continue providing the same outstanding service Guthrie’s Med Supply Depot has been providing for decades while expanding service options.”    

CMS provides notice of MA increase 

WASHINGTON – Payments from the government to Medicare Advantage plans are expected to increase, on average, by 4.33% or more than $21 billion from 2025 to 2026 as proposed, according to CMS’s Calendar Year 2026 Advance Notice for the Medicare Advantage and the Medicare Part D Prescription Drug Programs. 

The advance notice complements a previously proposed rule that CMS released in November 2024. 

“CMS has worked to ensure that people with Medicare Advantage and Medicare Part D have access to stable and affordable offerings,” said CMS Administrator Chiquita Brooks-LaSure. “Today’s Advance Notice continues CMS’ efforts to provide access to affordable, high-quality care in Medicare Advantage while being a good steward of taxpayer dollars. We are also continuing implementation of the Inflation Reduction Act, ensuring people with Medicare Part D have more affordable coverage for their medications.” 

CMS proposes to complete its implementation of a three-year phase-in of improvements to the MA risk adjustment model and growth rate calculation related to medical education costs as described in the CY 2024 Rate Announcement, as well as other technical improvements. In 2023, the agency announced its plan to complete this phase-in over three years to provide a glide path and predictability for plans and providers, while implementing important updates to ensure people with MA can continue to access the care they need and that taxpayer dollars are well spent. 

Pausing the risk adjustment model phase-in would result in $3.4 billion in additional payments to MA plans, and pausing the technical adjustment to growth rates regarding medical education costs would add $7 billion, which, combined, would result in an additional $10.4 billion in payments to MA plans in 2026 that are not necessary to support stability in the program.   

The federal government is expected to spend $9.2 trillion over the next decade on MA payments to plans—$1.3 trillion of those MA payments are MA rebate dollars used for MA supplemental benefits and premium buy-downs—and it is crucial these payments are accurate to prevent wasteful spending, CMS says. 

The American Medical Association responded: 

“CMS has announced that Medicare Advantage plans are expected to receive an average payment increase of 4.33% from 2025 to 2026. Meanwhile, physicians treating Medicare patients are facing their fifth consecutive year of payment cuts—this time by 2.8%—despite practice costs rising by 3.5%, according to the Medicare Economic Index. So, while MA plans receive an increase beyond the expected health care inflation rate, Congress not only failed to provide a physician payment update but allowed a new round of cuts at the end of the lame duck. It's unbelievable they're giving insurance companies that had record profits an increase while at the same time cutting payment to physician practices that are struggling to survive. This contrast highlights the urgent need for Congress to prioritize linking payment to physician practices to the cost of providing care. Otherwise, with or without MA plans, patient access will suffer if physicians close their practices. A new Congress is meeting — it’s time for a new approach to physician payment reform.” 

VGM ‘fills gap’ in respiratory offering 

WATERLOO, Iowa – VGM Group has acquired SleepGlad, a secure, 3D mask-fitting platform for CPAP and non-invasive ventilators, from Baxter Technologies in a move that fills out the company’s respiratory offerings. 

VGM already offers fulfillment and logistics services for CPAP machines and supplies through VGM Fulfillment and no-touch delivery, onboarding, patient setup, compliance and post-compliance monitoring through VGM & Associates. 

“SleepGlad perfectly fills a gap in our current sleep solution offerings, and it’s a real gamechanger for our customers,” said Boone Lockard, CRT, VP, Clinical Services, VGM & Associates, who will oversee the SleepGlad team. “It simplifies a time consuming and hands-on process, and most importantly, it helps improve patient quality of care.” 

The SleepGlad team, except for David Baxter, president of Baxter Technologies, will join VGM. They include Tim Bethany, vice president; Jose Valentin, business development manager; Hatem Alamir, vice president engineering; and Emin Muratoglu, full stack developer. 

Developed by a board-certified sleep physician, SleepGlad scans and precisely measures patients remotely through any smartphone or camera enabled device. Combined with a machine-learning platform, SleepGlad provides a manufacturer-agnostic recommendation for the ideal mask fit with a 97% accurate rate, VGM says. 

“Technology continues to define the future of health care, and I’m proud VGM is leading the charge,” said Jeremy Stolz, VGM Group CEO. “SleepGlad is a perfect addition to the diversified VGM family of businesses. It utilizes leading edge technology to support providers and improve patient outcomes. That’s why VGM is here. We’re committed to investing in solutions that help providers focus on what they do best – providing the highest quality care for patients.” 

VGM will debut the SleepGlad offering at Medtrade next month. 

  • Related: VGM & Associates launched Sleep Services to help HME providers specifically address the growing impact of staffing shortages on compliance with CPAP therapy.   
  • Related: Collins Medical launched a new CPAP program that leans heavily on SleepGlad and rtNow. 
  • Related: Baxter buys SleepGlad. 

Inogen expects to exceed full-year guidance 

GOLETA, Calif. – Inogen estimates preliminary, unaudited total revenue for the full year 2024 to be in the range of $334.5 million to $335.5 million, reflecting YOY growth of 6% and exceeding the company’s previous full-year guidance of $329 million to $331 million. 

The company says its performance was driven by strong, double-digit growth in business-to-business revenue, while it continues to work to stabilize direct-to-consumer revenue with initiatives to enhance overall profitability. 

“2024 was a very successful year for Inogen,” said Kevin Smith, president and CEO of Inogen. “We drove a return to revenue growth, improved profitability and disciplined cost management. Achievements in the (fourth) quarter included the launch of Rove 4 and FDA clearance for our SIMEOX 200 device, which diversifies our global product offerings, all while continuing to extend our reach and aiming to improve outcomes for patients. I am confident in our team’s ability to continue delivering on our commitments and providing leading devices for patients with respiratory diseases in 2025 and beyond.” 

Inogen estimates preliminary, unaudited revenue in the fourth quarter of 2024 to be in the range of $79 million to $80 million, reflecting year-over-year growth of 4% to 5%.  

  • Related: Inogen has received 510(k) clearance from the U.S. Food and Drug Administration for the Simeox 200 Airway Clearance Device, expanding the company’s ability to market and meet the various needs of patients with chronic respiratory diseases in the U.S. 
  • Related: Inogen has launched its Inogen Rove 4 Portable Oxygen Concentrator, a lightweight, user-friendly device with an additional fourth flow setting delivering up to 840ml/min of oxygen. 

DASCO grows senior leadership team 

WESTERVILLE, Ohio – Due to its continued growth, DASCO Home Medical Equipment has added Michael Gorman to its senior leadership team. “His extensive experience and shared values make him a perfect fit as we embark on our next chapter of expansion and success,” the company stated on a LinkedIn post. Gorman, who is an Ohio native, started in finance as a stockbroker and then transitioned into the ambulance industry, where he spent 20 years, rising from a mid-level manager to the regional CEO of one of the world's largest ambulance services. He has run very large 911 systems in cities like Atlanta, Buffalo, N.Y., Las Vegas and Los Angeles. Most recently, he was CEO of Pediatric Dental and Orthodontics, which serves100,000 patients. 

EZ-ACCESS among those challenging import ruling 

HOPKINSVILLE, Ky., and OLDSMAR, Fla. – EZ-ACCESS and MI Metals, a manufacturer of aluminum extrusions, say they are disappointed with a recent ruling by the U.S. International Trade Commission that allows aluminum extrusions from 14 countries, including China and India, to enter the U.S. market without what they say are necessary duties. The decision, which has been appealed, has substantial implications for American manufacturers and threatens to undermine the quality of products and U.S. jobs, they say. “The commission’s recent decision was both shocking and extremely disappointing,” said Brook Massey, president of MI Metals. “The recent ruling gives carte blanche to our subsidized competitors to flood the U.S. market with cheap imports that threaten American jobs and this critical domestic industry. In business for over 40 years, MI Metals remains steadfastly committed to U.S. production of high-quality aluminum extrusions by American workers and will continue to demand a level playing field for U.S. manufacturing.” The USITC’s ruling states that these imports do not materially injure or threaten the U.S. aluminum industry, contradicting previous assessments of unfair trade practices. As a result, no new antidumping (AD) or countervailing duties (CVD) will be imposed on these aluminum extrusions, and provisional AD/CVD duties collected during the investigation will be refunded to importers. In May 2024, the companies say the Biden White House issued a statement acknowledging that imports of certain aluminum products from China and other foreign countries were harming the U.S. steel and aluminum industry, emphasizing the need for fair trade practices. The commission’s ruling leaves many American manufacturers like EZ-ACCESS facing competition from an influx of subsidized foreign products. “This appeal represents our broader effort to address these inequities and prevent long-term damage to domestic products,” said Don Everard, CEO of EZ-ACCESS. “By challenging the decision, we aim to safeguard American jobs and promote the high-quality standards that define the products made in the U.S.” 

IVR health tech companies merge 

SAN FRANCISCO – SuperDial, a voice AI company that automates calls for health care organizations, has acquired MajorBoost, a fellow innovator that has developed an AI-powered system to automate the process of waiting on hold and navigating the interactive voice response (IVR) phone trees of insurance companies. The acquisition augments SuperDial’s existing capabilities in automated dialing, IVR and hold navigation, as well as collecting information over the phone from live representatives, and positions the company to address the growing demand for automation in health care, it says. “We’re extremely excited to welcome MajorBoost to the SuperDial family,” said Sam Schwager, CEO & co-founder of SuperDial. “This brings us one step closer to our goal of making tedious phone calls a thing of the past for health care organizations. During our evaluation, we were highly impressed by MajorBoost’s ability to encode the nuances required to consistently navigate phone trees and hold times. It’s clear that combining our solutions will lead to a better overall experience for our customers.” SuperDial specializes in end-to-end phone call automation. Its AI agents navigate phone trees, wait on hold, and conduct full conversations with live representatives. If an AI agent cannot complete a call, a human steps in, which also generates valuable data that can be used to improve AI performance. By leveraging SuperDial to automate phone calls that would otherwise need to be performed by their teams, customers have reported cost savings and productivity gains as high as 3x and 4x, respectively, the company says. 

VGM redesigns Heartland website 

WATERLOO, Iowa – VGM has unveiled a redesigned website for its Heartland Conference at www.vgmheartland.com. The website, which features a more streamlined design, making all resources and information about the conference more easily accessible, also incorporates the event’s new colors and modernized logo, which were announced in November. Jill Blaser, Heartland Conference chair said: “We are thrilled to launch our new website. The VGM Heartland Conference has always been a cornerstone event for the HME industry, and we are confident that the refreshed website will enhance the vibrant and dynamic atmosphere of the event.” Jason Sadler, Heartland Conference technology pillar said: “This new site is built on a modernized platform that is ideal for an event like Heartland. We are dedicated to staying current and providing the best experience for our attendees, and we believe this update better aligns with our commitment to innovation and excellence.” The VGM Heartland Conference takes place June 9-11 in Waterloo, Iowa. 

ATHOMES joins ACMESA 

CARY, N.C. – The Association for Tennessee Home Oxygen & Equipment (ATHOMES) will join the Atlantic Coast Medical Equipment Services Association (ACMESA), adding Tennessee to the list of states it represents. “This partnership expands ACMESA’s reach and strengthens our collective ability to advocate for and support our members,” ACMESA’s board of directors stated in a bulletin. ACMESA will now represent providers in North Carolina, Virginia, West Virginia and Tennessee. The association says the partnerships with ATHOMES allows it to amplify the voice of its members on both state and national levels; expand resources and representation to tackle unique challenges across all member states; and strengthen advocacy efforts for providers and patients. Even as it expands, ACMESA says it remains committed to addressing the unique needs of each state it represents. “Local advocacy will continue to be a top priority, with Tennessee providers actively engaging on critical issues like Medicaid reforms and fee schedules, supported by ACMESA’s expertise and established reputation,” the association stated. 

Invacare to relocate some jobs 

ELYRIA, Ohio – Invacare will re-locate some manufacturing jobs, but it will keep its North American headquarters here, according to a local newspaper. The news follows the company’s decision to sell its North American business to MIGA Holdings late last year. “To better align with changing business needs and improve efficiency, we will be relocating some of our manufacturing to other facilities,” a spokesperson told The Chronicle. MIGA is owned by C+A Global, a manufacturing, marketing and retail company based in Edison, N.J. The company didn’t tell the newspaper when the change would take place or how many jobs it would affect. The mayor of Elyria told the newspaper that Invacare employs about 200 in the area.  

  • Related: Chaim Piekarski, CEO of MIGA Holdings, spoke with HME News about the company’s turnaround plans for Invacare. 

HHS declares PHE in California 

WASHINGTON – The U.S. Department of Health and Human Services has declared a public health emergency for California to address the health impacts of the ongoing wildfires in Los Angeles County. The declaration, which follows President Joe Biden’s major disaster declaration, authorizes flexibilities for CMS providers, suppliers and beneficiaries retroactive to Jan. 7 to meet the emergency health needs of Medicare and Medicaid beneficiaries. “We will do all we can to assist California officials with responding to the health impacts of the devastating wildfires going on in Los Angeles County,” said HHS Secretary Xavier Becerra. “We are working closely with state and local health authorities, as well as our partners across the federal government, and stand ready to provide public health and medical support. My thoughts and prayers are with the people impacted in my home state.” CMS will permit people with Medicare who have lost or realized damage to their durable medical equipment, prosthetics, orthotics, and supplies as a result of the wildfires to receive replacements of such items and services. Additionally, HHS has made information available from the HHS emPOWER program, a partnership between the Administration for Strategic Preparedness and Response and CMS, to support public health emergency planning and response activities. The program provides valuable information on the number of Medicare beneficiaries who rely on electricity-dependent durable medical equipment and certain health care services, such as dialysis, oxygen tanks or home health care, to help anticipate, plan for, and respond to the needs of at-risk residents in areas impacted by the storm. 

Comments

To comment on this post, please log in to your account or set up an account now.