In brief: Owens & Minor explores P&HS sale, Grassley challenges UHC, CCS details burnout

RICHMOND, Va.– Owens & Minor is looking to sell off its Products & Healthcare Services business, while it remains “bullish” on its Patient Direct business. 

The company made the announcement today, as part of its fourth quarter and full-year 2024 earnings results. 

“Our commitment to directing capital toward the higher growth and higher margin Patient Direct segment has been increasingly evident in recent years and is consistent with our strategy,” said CEO Edward Pesicka. “As a logical next step, we have been actively engaged in robust discussions regarding the potential sale of our Products & Healthcare Services segment.” 

The company posted total revenue of nearly $2.7 billion for the fourth quarter and $10.7 billion for the full year. Of that, Patient Direct accounted for $695 million for the fourth quarter and $2.68 billion for the full year 2024. 

“Within Patient Direct, we continue to leverage our footprint and broad product offering to support home-based care for millions of patients with chronic conditions,” said Pesicka. “These capabilities, combined with positive demographic trends and expanding home treatment options, leaves us very bullish on the future of this business.” 

In February, Owens & Minor said it is raising additional debt “while capital markets are attractive” to finance its acquisition of Rotech Healthcare, and said the company still expects to close on the acquisition in the first half of 2025.  

The deal was first announced in July 2024, with the company saying it planned to acquire Rotech for $1.36 billion in cash. 

• Related: Owens & Minor provided an earnings preview Feb. 3. 
• Related: Company talks product play, synergy drivers with Rotech acquisition. 

Grassley presses UnitedHealth Group on billing practices 

WASHINGTON – Sen. Chuck Grassley, R-Iowa, chairman of the Senate Judiciary Committee and a former chairman of the Senate Finance Committee, has sent a letter to UnitedHealth Group CEO Andrew Witty demanding detailed information on the company’s Medicare billing practices. 

Grassley’s letter cited reports of apparent fraud, waste and abuse at UnitedHealth Group, including efforts to diagnose enrollees with obscure revenue-generating diagnoses that were irrelevant or inaccurate. This resulted in $8.7 billion in extra payments in 2021 alone, according to reports. 

“Despite these oversight efforts, [Medicare Advantage organizations] continue to defraud the American taxpayer, costing them billions of dollars a year,” he wrote. “The apparent fraud, waste and abuse at issue is simply unacceptable and harms not only Medicare beneficiaries, but also the American taxpayer.” 

In the letter, Grassley requests that UnitedHealth provide answers to the following questions no later than March 10, 2025: 

• What steps has UnitedHealth Group taken to review all diagnoses submitted to CMS for its MA enrollees that were identified only by HRAs or chart reviews (either manual or artificial intelligence) and to identify all submitted diagnoses that are obscure, irrelevant, or 

•  inaccurate?  Quantify the number and amount of inappropriate payments identified as a result of these actions. 

• Provide all records that relate to the compliance program that UnitedHealth Group had in place from 2019-2024 to monitor the accuracy and appropriateness of the diagnosis codes submitted to CMS for enrollees, including the design and results of all audits conducted. 

• Provide all training manuals and guidance documents for conducting HRAs and manual chart reviews, a list of all software used during the course of an HRA and a manual chart review, and the logic rules for all electronic decision support tools embedded in the software.  Does UnitedHealth Group use artificial intelligence to conduct the aforementioned processes?  Are all diagnoses identified by artificial intelligence confirmed by a trained medical record reviewer? 

• Provide all policies and procedures for obtaining diagnostic confirmation from an enrollee’s primary care provider and ensuring the receipt of treatment for a new diagnosis identified by an HRA or a chart review.  Provide all documentation related to compliance audits of this process. 

Since 2015, Grassley has pressed CMS and the Department of Justice to recover improper payments made to Medicare Advantage 0rganizations, including UnitedHealth Group. 

CCS study: Physicians ‘overwhelmed’ by soaring diabetes numbers 

DALLAS – The vast majority of physicians caring for people with diabetes say they are overwhelmed, according to a new study from CCS, a provider of clinical solutions and home medical supplies for those living with chronic conditions. 

Eighty-five percent of endocrinologists and 58% of PCPs feel overwhelmed by the number of patients with diabetes, demonstrating that many are not in a position to properly support the ongoing education and coaching needs of people living with diabetes, according to “From Burnout to Breakdown: Why America’s Healthcare System Is Failing Patients Living with Diabetes and Providers Alike,” a collaboration between CCS and independent market research firm PureSpectrum. 

“The data is clear: Proper education and coaching are not optional extras — they’re fundamental to successful diabetes management,” said Arti Masturzo, MD, chief medical officer at CCS. “As we face a projected surge to 39.7 million Americans diagnosed with diabetes by 2030, we must urgently address these systemic gaps in patient support and education.” 

To conduct the study, CCS and PureSpectrum surveyed more than 100 PCPs and more than 100 endocrinologists in the U.S. 

While 91% of PCPs report providing ongoing patient health coaching and education specific to diabetes, just two-thirds (65%) believe patients have enough access. A majority of endocrinologists and PCPs (86%) also agree that a lack of ongoing diabetes education and coaching is a direct cause of low patient adherence to therapy. 

The study also found that health plans and their pharmacy benefit managers (PBMs) are urging some clinicians to steer patients away from DME companies that traditionally provide patients with more comprehensive access to chronic care education and coaching. This, despite 73% of endocrinologists and 69% of PCPs preferring to prescribe therapies, such as continuous glucose monitors (CGMs), through a DME provider rather than a pharmacy. 

• View the report: www.ccsmed.com/from-burnout-to-breakdown/ 

• Related: CCS surveyed patients about their preferences to obtain supplies. 

ResMed on sleep health: ‘Millions struggle in silence’ 

SAN DIEGO – People lose an average of nearly three nights of restorative sleep each week, according to a new survey from ResMed.  

Despite a trend toward growing awareness of sleep’s importance, many continue to suffer in silence and remain trapped in a cycle of exhaustion, the survey found, with poor sleep impacting everything from work to relationships to mental health. 

“Chronic poor sleep impacts our relationships, workplace productivity, and increases the risk of cognitive decline, mood disorders, and serious health conditions like heart failure and stroke,” said Carlos M. Nunez, M.D., ResMed’s chief medical officer. “For individuals with untreated or poorly managed sleep apnea, these risks are even greater. That’s why talking with a doctor about treating disrupted sleep is important.” 

ResMed’s fifth annual Global Sleep Survey garnered responses from 30,026 people across 13 markets. 

Study findings include: 

• Nearly one in four (22%) respondents choose to just live with poor sleep rather than seek help. 

• About one-third of survey respondents report difficulty falling or staying asleep three or more times per week, citing stress (57%), anxiety (46%) and financial pressures (31%) as primary disruptors.  

• 89% of respondents believe sleep makes them feel better about themselves, but only 24% would take immediate action to address sleep issues. 

• 22% globally chose to “just live with” poor sleep. 

• 45% do not track their sleep, missing valuable insights that could improve sleep quality. 

“Sleep is as vital to health as diet and exercise, yet millions struggle in silence,” Nunez said. “This research highlights an urgent gap in awareness and action—one that needs immediate attention, to improve global health outcomes. 

To assess your sleep health, take the sleep assessment. 

Kansas man pleads guilty to $1B fraud scheme 

TOPEKA, Kan. – Gregory Schreck, of Johnson County, Kan., has pleaded guilty today to operating an internet-based platform named DMERx that generated false doctor orders to defraud Medicare and other federal health care benefit programs of more than $1 billion. According to court documents, Shreck and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries to provide their personally identifiable information and agree to accept medically unnecessary orthotic braces, pain creams and other items through misleading mailers, television advertisements and calls from offshore call centers. Schreck, a vice president of the company that operated DMERx, admitted that he offered to connect pharmacies, durable medical equipment suppliers and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctor orders that were transmitted using the DMERx platform. The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctor orders generated through DMERx billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million based on these false and fraudulent claims. Schreck pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison.  

Former NCPA president urges action on PBM reform 

WASHINGTON - Hugh Chancy, former president of the National Community Pharmacists Association and a co-owner of Chancy Drugs in Georgia, urged members of Congress to take immediate action and pass common-sense pharmacy benefit manager reforms during a recent House Energy and Commerce Subcommittee on Health hearing that examined PBM reform policies. Emphasizing the important role of pharmacies like his in providing essential health care services to patients, he said this work is jeopardized by the vertically integrated PBMs that determine which patients can access their pharmacy, the prices patients pay, what reimbursements pharmacies receive and what medications are on formulary. “We are not asking for favorable treatment, but merely a level playing field,” said Chancy in a statement for the record. “I encourage lawmakers on both sides to continue to work in a bipartisan manner to pass these reforms that save $5 billion. If not, we will see more pharmacy deserts and less access to care.” NCPA is advocating for Congress to pass bipartisan reforms in any vehicle that will get across the finish line as soon as possible this year. Reforms would enhance transparency and eliminate spread pricing in Medicaid managed care programs and require CMS to define and enforce reasonable and relevant contract terms in Medicare Part D, which would improve patient access to medications. They would also lower costs for patients, create a fairer playing field for community pharmacies and produce billions in taxpayer savings, the NCPA says. 

ACU-Serve taps new CTO 

AKRON, Ohio - ACU-Serve has named Grant Porteous, who has more than 25 years of experience in health care technology, including as vice president of software development at Experian Health, as its new chief technology officer. Over the years, Porteous has led multiple product and platform teams responsible for core revenue cycle management infrastructure, achieving significant cost savings, efficiency improvements and revenue growth. "When I was considering my next step, I wanted to join a company where I could use my experience to scale technology-driven solutions in health care," he said. "ACU-Serve stood out not just for its impressive growth, but for its strong leadership and client-first culture. From the start, I could see the team’s dedication to innovation, and I look forward to helping drive that vision forward by supporting ACU-Serve’s expansion and enhancing its technology to better serve our clients." In his new role, Porteous will focus on optimizing ACU-Serve’s technology stack, ensuring scalability and driving advancements in automation and data-driven solutions. His leadership will further support the company’s commitment to delivering high-quality services that maximize efficiency and financial outcomes for health care providers. “Grant’s deep expertise in technology and product development, combined with his ability to lead high-performing teams, makes him an ideal fit for ACU-Serve,” said Jim Knight, president and CEO of ACU-Serve. “We are excited to welcome him to our leadership team and look forward to the impact his vision and experience will have on our company and our clients.” 

Amino Health, GEM SLEEP connect patients 

LOS ANGELES – A new partnership will enable members of Amino Health, a digital health care navigator, to seamlessly connect with GEM SLEEP, a virtual sleep apnea care provider, expanding access to in-network, proven sleep apnea treatment. "Sleep apnea is a serious but often overlooked health condition that impacts 30-plus million people, and of those, less than 20% have been diagnosed” said Brian Sauer, CEO of GEM SLEEP. "By integrating with Amino Health’s platform, we can help more individuals access the care they need to improve their sleep, overall health, and quality of life." Through the partnership, qualifying Amino Health members can now: 

• Access GEM SLEEP’s virtual diagnostic and treatment services for sleep apnea, including at-home sleep tests and CPAP therapy 

• Connect with board-certified sleep specialists for diagnosis and treatment recommendations 

• Receive comprehensive treatment from home, eliminating the need for lengthy wait times at traditional sleep clinics 

• Receive high-tech, high-touch support from the GEM SLEEP coaching program 

"Making high-quality health care more accessible is core to our mission at Amino Health," said John Asalone, CEO of Amino Health. "By partnering with GEM SLEEP, we’re helping our members access evidence-based sleep apnea treatment that is both effective and convenient. This collaboration represents our commitment to guiding people to affordable, in-network care that truly improves their health." 

Mölnlycke Health Care announces launch of the 2025 Future Summit 

GOTHENBURG, Sweden - Mölnlycke Health Care has announced the launch of its 2025 Future Summit, an educational event bringing together health care professionals from across Europe, the Middle East and Africa. The summit, which will take place Oct. 6-7 in the Netherlands, will host more than130 health care professionals from vascular, orthopedic, general and plastic surgery specialties. The event will provide a unique platform to explore cutting-edge advancements, share best practices and foster interdisciplinary collaboration in wound care and surgical excellence. “At Mölnlycke, we believe that education is a cornerstone of progress in healthcare,” said Emma Wright, chief medical officer. “The 2025 Future Summit exemplifies our commitment to fostering innovation, enhancing clinical practice, and building partnerships that enable healthcare professionals to improve patient outcomes.”