In brief: Henry Schein doubles down, Inogen ‘disappointed,’ Rhythm consolidates 

MELVILLE, N.Y. - Henry Schein, a provider of health care solutions to office-based dental and medical professionals, has signed an agreement to acquire a majority ownership position in Shield Healthcare, a provider of medical supplies with net sales of about $180 million in 2022. 

Henry Schein, which acquired Prism Medical, also a provider of supplies, in 2021, says its acquisition of Valencia, Calif.-based Shield Healthcare will advance its continuum of care delivery model. 

“As the U.S. population ages and care increasingly moves into the home, Henry Schein is meeting this trend by enhancing our home care medical products offering,” said Stanley M. Bergman, chairman of the board and CEO of Henry Schein. “We are delighted to expand our presence in delivering medical products. Together, we share an unwavering commitment to customer satisfaction.” 

The acquisition enhances Henry Schein's existing medical business by delivering a wide range of products, including incontinence, urology, ostomy, enteral nutrition, advanced wound, and diabetes supplies, as well as continuous glucose monitoring devices, directly to patients in their homes. 

Shield Healthcare will operate as a part of Henry Schein Medical, which reported global sales of $4.45 billion for 2022. The current owners of Shield Healthcare, including members of the company’s management team, will retain the remaining minority ownership position in the company. 

Inogen ‘disappointed’ with Q2 results 

GOLETA, Calif. - Inogen reported total revenue of $83.6 million for the second quarter of 2023, a 19% decrease compared to the prior year, as higher rental revenue and domestic business-to-business sales were more than offset by declines in direct-to-consumer sales and international B2B sales. 

It reported a net loss of $9.8 million vs. $3.4 million. 

“While disappointed in our second quarter performance, we remain focused on driving execution behind our commercial strategy to continue improving productivity in the direct-to-consumer channel, expanding our presence in the prescriber channel and managing volatility in the lower-margin business-to-business channels,” said Nabil Shabshab, president and CEO. “Importantly, we are making progress on improving Adjusted EBITDA, while making select investments, including innovation to organically expand our portfolio in service of new patients and indications beyond COPD. Additionally, the recent agreement to acquire Physio-Assist will allow Inogen to serve patients in need of airway clearance with a clinically differentiated product internationally and eventually in the US. We believe that continued execution behind our commercial and innovation strategies will provide a path to revenue growth in 2024 with a continued focus on a return to profitability.” 

As a result of its year-to-date performance and continued pressure in the business-to-business channels, Inogen now expects 2023 annual revenue of $315 million to $320 million and adjusted EBITDA loss of $20 million to $25 million for the full year. 

Rhythm Healthcare consolidates distribution centers 

ST. PETERSBURG, Fla. – Rhythm Healthcare will consolidate its distribution center in St. Petersburg, Fla., into its existing operations in Memphis, Tenn. 

The company says operating two distribution centers in the Southeast resulted in unnecessary costs and led to challenges in maintaining consistent inventory levels. 

“By centralizing our distribution operations in Memphis, we can streamline processes, improve efficiency and eliminate duplicate costs,” the company stated in an email to customers. 

As a result of the consolidation, Rhythm says customers can also expect more consistent fill rates on orders, leading to improved service. It says shipping times to some parts of Florida may see a slight delay, but “the overall benefits outweigh this change.” 

The company, which also has expanded operations in Corona, Calif., expects to complete the consolidation by Sept. 1. 

“We are committed to making this transition as seamless as possible for you,” the company stated. “We have meticulously planned the relocation to minimize disruptions. Our dedicated team will work diligently to ensure your orders continue to be processed efficiently and delivered promptly.”  

AdaptHealth reports Q2 increases 

‘We have spent considerable effort creating and beginning to implement a comprehensive plan to resume market growth in our diabetes line’ 

PLYMOUTH MEETING, Pa. – AdaptHealth reported net revenue of $793.3 million for the second quarter 2023, compared to $727.6 million during the same period in 2022, an increase of 9%. 

Net income was $14 million and adjusted EBITDA was $171 million. 

“We are pleased to report solid results in the second quarter driven by continued strength in our core sleep and respiratory product lines,” said Richard Barasch, chairman and interim CEO. “We have spent considerable effort creating and beginning to implement a comprehensive plan to resume market growth in our diabetes line of business and saw meaningful sequential improvement. We were especially pleased with our cash generation for the first half of the year and with the execution to date of our cost-management program.” 

The company is updating previous financial guidance for fiscal year 2023 as follows: 

• Net revenue of $3.16 to $3.20 billion, from $3.16 to $3.24 billion 
• Adjusted EBITDA of $650 to $680 million, from $650 to $710 million 
• Total capital expenditures representing 10-12% of net revenue, unchanged 
• Free cash flow representing 3%-4% of net revenue, unchanged 

Soleo Health debuts in Boise 

FRISCO, Texas – Soleo Health has opened its Boise, Idaho, pharmacy and infusion location. The location, which is close to the area’s largest hospital, features a custom-built ISO 5 clean room, which is an ultra-clean stringent classification required for compounded medication preparations. It also offers three private ambulatory infusion suites for patients receiving complex biologic and infusion therapies. “Soleo Health’s Boise market expansion allows the company to further enhance its services in this region through our state-of-the-art specialty pharmacy,” said Jessica De John, regional vice president for Soleo Health’s Western region. “Furthermore, Soleo Health serves Medicare and Medicaid beneficiaries and has agreements with commercial health plans that cover approximately 90% of those living in Idaho, Washington and Oregon. We are poised to meet the complex specialty pharmacy needs of patients across all those states from our new location and look forward to serving patients, providers and payors.” Soleo Health Boise specializes in providing complex biologic and infusion therapies for patients with rare and ultra-rare diseases, as well as autoimmune disorders, such as chronic inflammatory demyelinating polyneuropathy, multiple sclerosis and myasthenia gravis. It will also treat patients with amyotrophic lateral sclerosis (ALS), Alzheimer’s disease, Crohn’s disease, rheumatoid arthritis, ulcerative colitis, primary immunodeficiencies and thyroid eye disease, among others. Other therapies and complex specialty pharmaceuticals Soleo Health Boise administers include anti-infective, parenteral nutrition and inotropic therapies for acute patient care needs. 

Inogen gives Rove 6 green light in US 

GOLETA, Calif. – Inogen has launched the Rove 6 portable oxygen concentrator in the United States with an eight-year expected service life. The company launched the Rove 6 in Europe in December. Inogen has also extended the eight-year expected service life to its Inogen One G5 POC in the United States. “In capital-based business models it is critical to maximize the value of the devices you invest in to enhance your returns,” said Nabil Shabshab, president and CEO. “We are excited to now be able to extend this opportunity to Inogen’s business-to-business customers allowing them to improve the profitability of their oxygen concentrator business and strengthen the appeal of the non-delivery long-term oxygen therapy model. As a global market leader with a focus on delivering high quality and innovative respiratory care solutions, Inogen is well positioned to deliver the best portable oxygen concentrator for business-to-business customers, with a differentiated value proposition through a strong total cost of ownership, best-in-class quality, best after sales services, and now the best-in-class expected service life.” The Rove 6 is a six-setting POC with a long battery life. It delivers up to 1,260 mL/minute of medical grade oxygen at a weight of only 4.8 pounds. It’s available with two battery options, including an extended battery that can support up to 12 hours and 45 minutes of use. 

Movano marks milestone for Evie Ring 

PLEASANTON, Calif. – Movano Health has submitted a 510(k) premarket notification to the U.S. Food and Drug Administration for the company’s first commercial product, the Evie Ring. The submission has passed the first milestone of the review process – an initial review for completeness – and is now under full review by the FDA. "From the outset, our vision for Evie has been to develop a consumer wearable that is beautiful, accessible and personalized, as well as be cleared by the FDA as a medical device,” said John Mastrototaro, CEO of Movano Health. “This first submission to the FDA marks a momentous milestone for our team and sets the stage for future FDA filings. The effort associated with becoming a medical device company is certainly significant, but we believe it’s a highly competitive differentiator and a strong asset when compared to existing wellness solutions. It also is expected to enable significant partnership opportunities with healthcare and other enterprises. We look forward to working with the FDA through the review process.” The Evie Ring combines health and wellness metrics to give a full picture of one's health: resting heart rate, heart rate variability, SpO2, respiration rate, skin temperature variability, period and ovulation tracking, menstrual symptom tracking, activity profile, including steps, active minutes and calories burned, sleep stages and duration, and mood tracking. This data is delivered through a mobile app, which aims to simplify how data is presented, moving away from complex graphs and charts, and turning biometric data into actionable insights that will help women make manageable lifestyle changes and take a more proactive approach to mitigating the risks of chronic disease. 

Brightree searches for new CEO 

PEACHTREE CORNERS, Ga. - Brightree CEO Matt Mellott has moved on. “We are engaged in the ongoing recruitment of the ideal candidate for this crucial role,” the company said in a statement to HME News. “In the interim, Bobby Ghoshal is serving as our HME general manager.” Ghoshal is president of the software-as-a-service business for ResMed, which owns Brightree and several other software companies. Mellott is now the CEO of Forefront Dermatology. 

Encore Healthcare crosses milestone 

LIVINGSTON, Tenn. – Encore Healthcare’s Nexus software is now serving more than 100,000 patients across the United States. “We are thrilled to reach this important milestone,” said Zach Gantt, RRT, FAARC, CEO of Encore Healthcare. “Our team’s dedication to developing a robust and user-friendly software solution, coupled with the unwavering support from our clients and partners, has made this achievement possible. We are grateful for the opportunity to make a positive impact on the lives of so many individuals.” Nexus harnesses evidence-based guidelines and clinical protocols to provide care teams with a scalable, systematic approach to effectively engage and manage patients, reducing hospitalizations and enhancing overall patient care and progress. The software’s features include real-time monitoring of symptoms, personalized care plans, secure communication channels and data-driven insights. 

Uptiv debuts in Michigan with holistic approach to infusion care 

WESTLAND, Mich. – Uptiv Health has launched a new hybrid infusion care experience that it says provides personalized in-person care and extends beyond the infusion center to support patients and improve outcomes via a consumer-friendly digital platform. The company is currently accepting referrals at its flagship infusion care center in Westland, Mich., and plans a grand opening there on Aug. 30. “Uptiv Health was founded on the fundamental principle that we are treating a whole person, not just administering infusion therapy and sending patients home until their next appointment,” said Torben Nielsen, CEO and co-founder of Uptiv Health. “With patients top of mind, we prioritize clinical excellence while providing an experience that focuses on comfort, incorporates overall well-being and extends beyond the four walls of our clinic – completely reimagining the infusion therapy experience for patients suffering from chronic illnesses.” Uptiv Health is composed of an integrated team of experts and clinicians, including FNPs, RNs, nutritionists and behavioral health specialists. Its app provides patients with accessible virtual care on everything from onboarding to scheduling appointments to making digital payments. The app also provides patients with the opportunity to stay in touch with their care team and for symptom-tracking. Uptiv accepts Medicare and is in network with many insurers, including Blue Cross Blue Shield, Priority Health, Aetna, Humana and United Healthcare.