In brief: Owens & Minor seeks financing, F&P ‘works through’ tariffs, docs oppose cut

RICHMOND, Va. – Owens & Minor is raising additional debt “while capital markets are attractive” to finance its acquisition of Rotech Healthcare, the company announced Feb. 3. 

The company still expects to close on the acquisition in the first half of 2025. 

“Our healthy free cash flow provides the vehicle for this proposed financing, as well as helping us achieve our deleveraging goals over the next few years,” said Edward Pesicka, president and CEO of Owens & Minor. “Having this additional facility at attractive interest rates gives us the ability to remain nimble in a dynamic market.” 

Owens & Minor also announced that it expects the following financial results for the fourth quarter 2024: 

• Revenue of $2.67 billion to $2.7 billion 

• Net loss of $311 million to $288 million 

• Adjusted EBITDA of $135 million to $140 million 

• Net loss per share $(4.03) to $(3.73) 

• Adjusted EPS of $0.52 to $0.55 

• Gross capital expenditures of $71 million to $76 million 

• Capital expenditures, net of patient service 

It expects the following results for full year 2024: 

• Revenue of $10.67 billion to $10.70 billion 

• Net loss of $(378) million to $(355) million 

• Adjusted EBITDA of $520 million to $525 million 

• Net loss per share $(4.92) to $(4.63) 

• Adjusted EPS of $1.50 to $1.53 

• Gross capital expenditures of $228 million to $233 million 

• Capital expenditures, net of PSE regular sales proceeds, of $158 million to $163 million 

• Total debt of $1.854 billion to $1.859 billion 

• Net debt of $1.805 billion to $1.810 billion 

• Cash provided by operating activities of $160 million to $165 million 

“We are particularly excited about the full-year performance of our Patient Direct segment which posted solid mid-single digit growth, and even higher in key categories,” Pesick said. “In addition, we are pleased that in a year of meaningful reinvestment in the business we were able to reduce total debt by over $240 million.” 

F&P ‘working through complexities’ of new tariffs 

AUCKLAND, New Zealand – Fisher & Paykel Healthcare says it does not currently anticipate a material impact from the recently announced tariffs on its net profit after tax for the 2025 financial year, but it expects its costs will likely increase for the 2026 financial year. 

The company says it expects to reach its gross margin target of 65% eventually, through its long-standing continuous improvement activities across the entire business, coupled with efficient growth into existing infrastructure, but the recently announced U.S. tariffs may have added two to three years to that expectation. 

“The company takes a long-term view and will be working with global suppliers and U.S. customers to provide solutions to best mitigate the impact of the tariffs on all parties,” said Managing Director and CEO Lewis Gradon. “Fundamentally, our products and therapies are designed to improve care and outcomes for patients and to reduce the overall costs of providing healthcare. Across the business, we are continuing to make improvements that reduce costs or improve efficiencies. This proven combination is how we navigate all the various cost challenges that come our way over time.” 

A 25% tariff on products imported into the U.S. from Canada and Mexico and a 10% tariff on those imported from China is expected to go into effect Feb. 4. 

F&P currently manufactures about 45% of its volume in Mexico and about 55% in New Zealand, and for the first half of the 2025 financial year, about 43% of the company’s revenues came from the U.S. It says about 60% of U.S. volumes are supplies from its manufacturing facilities in Mexico. 

The company says it is currently “working through the complexities associated with the imposition of the tariffs.” 

 F&P will provide an update on its outlook for the 2026 financial year, as well as an updated estimate of the timeframe to return to the gross margin target, at its full-year results at the end of May. 

• Related: Trump’s tariffs: ‘The costs stack up’ 

PE firms invest in Soleo Health 

FRISCO, Texas – Court Square Capital Partners and WindRose Health Investors have announced the closing of a jointly controlled investment in Soleo Health. 

Court Square and WindRose have partnered with Drew Walk, co-founder and CEO, and Craig Vollmer, co-founder and chief commercial officer, to recapitalize the business and provide additional capital to support future growth. 

“We are thrilled to partner with WindRose and Court Square on the next phase of our growth strategy,” Walk said. “They share our commitment to excellence, and their expertise and guidance will continue to enhance our reputation as a premier health care service provider, helping shape the landscape of the industry with our exceptionally talented team of professionals. Together, we are dedicated to improving the lives of our patients.” 

Soleo Health provides high-touch specialty pharmacy and infusion services to more than 22,000 patients annually through a nationwide network of specialty home infusion pharmacies and ambulatory infusion sites. 

About the investors: 

• Court Square – Since 1979, the New York-based middle-market private equity firm has completed more than 245 platform investments, with a focus on helping founders, families and manager-owners to develop their companies into leaders into their respective markets. As of September 2024, it had $9.3 billion in assets under management. 

• WindRose – The New York-based health care-focused private equity firm manages more than $3.6 billion. 

“Soleo’s founder-led identity and commitment to providing comprehensive, personalized, and patient-centric care aligns perfectly with our investment strategy,” said David Nguyen, managing partner at Court Square. “We have been impressed by Drew, Craig and the entire Soleo team, and we look forward to working with them and WindRose to support the company’s continued growth.” 

Bill’s sponsors on Medicare cut: ‘The future of private practice is in dire straights’ 

WASHINGTON – A bipartisan group of 10 lawmakers in the House of Representatives has introduced a bill to stop the 2.83% cut in Medicare payments to stabilize physician practices and protect access to care. 

The “Medicare Patient Access and Practice Stabilization Act,” introduced by Reps. Greg Murphy, M.D., R-N.C., and Jimmy Panetta, D-Calif., along with eight other House members, would prospectively cancel the 2.83% cut that went into effect Jan. 1. 

“Physicians in America are facing unprecedented financial viability challenges due to continued Medicare cuts,” Murphy said. “Access to affordable and quality health care for millions of seniors is in severe jeopardy. Doctors see Medicare patients out of compassion, not for financial gain. The cost of caring for a Medicare patient far outpaces the reimbursement that physicians receive for seeing them. On top of that, the expense of providing care continues to rise due to medical inflation. This inflation, coupled with declining reimbursement rates, creates enormous financial pressures on physicians, forcing many to retire early, stop accepting new Medicare patients, or sell out to larger, consolidated hospital systems, private equity or even insurance companies. The future of private practice medicine, the most cost-efficient and personalized care, is in dire straits. This bipartisan legislation prevents further cuts, provides a modest inflationary adjustment to help ease the cost of care, and ensures Medicare remains viable for both doctors and patients." 

A similar bill failed to get passed during the lame-duck session late last year. 

The American Medical Association supports the bill and is pushing to get it passed as part of upcoming legislation to fund the federal government beyond a March 14 statutory deadline. 

“This legislation would begin to roll back the cuts physician practices have faced over the last four years while we all have experienced high inflation,” said AMA President Bruce A. Scott, M.D. “As evidenced by this bipartisan legislation, lawmakers know the trend is unsustainable and, if left unaddressed, will ultimately harm their constituents. Patient access to care and practice sustainability are not partisan or geographical issues. It’s an urgent national issue that demands immediate attention from Congress.” 

 According to an AMA analysis of data from the Medicare Trustees Report and the Federal Register, Medicare physician payments increased by only 7% between 2001 and 2025, or just 0.3% per year. Meanwhile, the cost of running a medical practice – which includes everything from office rent and staff salaries to electronic medical records and liability insurance premiums – rose by 59%. 

“The clock is ticking,” Scott said. “The continuing resolution expires on March 14. Physicians are healers first, but we are asking them to become vocal advocates for their patients over the next 45 days by contacting their members of Congress and urging them to include this bill in the next spending package. Patients, particularly Medicare recipients and anyone with a family member on Medicare, should do likewise.” 

AdaptHealth announces Bunting’s return 

PLYMOUTH MEETING, Pa. – AdaptHealth has announced that Dan Bunting has officially rejoined the company as senior vice president, business development, to focus on opportunities with large payers and health systems, strategic mergers and acquisitions, and key partnerships. He previously served as COO and adviser to CEO Suzanne Foster. "It's no secret that Dan is one of the most knowledgeable and experienced leaders in HME," Foster said. "He also has an unrivaled network of industry relationships, which means he can quickly recognize strategic opportunities. We know these opportunities will be critical as we continue to grow the company and the number of patients whose lives we impact every day." Previously, Bunting was COO of Aerocare, which was acquired by AdaptHealth in 2021. In all, he has 40-plus years of HME experience, including in product development and manufacturing. "I've been in this industry for my entire career, and there's a breath of fresh air in the new leadership at AdaptHealth, especially Suzanne Foster," Bunting said. "The new team's vision for the future perfectly aligns with my lifelong focus of advancing the HME industry, and I'm excited to be back with the company."       

RRI’s Harrington retires 

ST. LOUIS – Responsive Respiratory Inc. (RRI) has announced that Michael Harrington retired as vice president of sales effective Jan. 31. Harrington was one of three founding partners of RRI and oversaw the sales department since the company’s inception in 2003. “We have benefited greatly from Mike’s many contributions to RRI over the years, perhaps none more important than his passion for developing strong customer relationships,” said Steve Bannon, president. “His dedication, leadership and tireless work ethic was instrumental in shaping the company’s success and his deep industry knowledge and technical know-how will be sorely missed. It’s been an honor to work with him and wish him the best in his retirement.” Harrington managed both domestic and international sales and built a successful team of dedicated sales reps that contributed to the growth of RRI, the company says. Prior to joining RRI, he served as a sales manager for Victor Medical in Denton, Texas. 

VGM’s Greatorex to retire 

WATERLOO, Iowa – Jim Greatorex, vice president of VGM Live at Home, a division of VGM & Associates, has announced his plans to retire in early 2025. He began his career with VGM in 2015, bringing more than 30 years of experience in the HME and home accessibility industry to the company. As vice president of VGM Live at Home, he spearheaded many projects, services and tools to address the various needs of home access providers, the company says. “Jim’s many years of dedicated service to the HME, complex rehab technology (CRT), and home access communities have been truly remarkable,” said Tyler Mahncke, senior vice president, Clinical Mobility and Accessibility, at VGM. “From his successful years running his own business in Maine to the impactful years at VGM growing our home access division, we deeply appreciate the dedication and passion he has brought to the industry and look forward to continuing to work with him into 2025. Our goal is to ensure a smooth transition so Jim can enjoy more time with his family.” As a result of Greatorex’s retirement, Cindi Petito, who was recently named director of clinical network, will transition to director of VGM Live at Home. Supporting her will be Drew Aalderks, member account manager; Jeff Kessler, partner account manager; and Mahncke. Throughout 2025, Greatorex will maintain his relationship with VGM Live at Home and will be involved in planning this year’s VGM Live at Home Building Opportunities Summit. “It’s been an honor to work for VGM the last nine-and-a-half years and participate in the home access industry,” he said. “Working with our passionate Live at Home members and vendor partners has been a blast, and lifelong friendships have been made. I will work with Cindi Petito and the Live at Home team as long as it takes to make sure a smooth, successful transition happens. The home access industry has a very bright future with a decade or more of steady growth, and Cindi and the VGM Live at Home team is ready to continue to help the industry evolve, grow, and professionalize to meet its great potential.” 

Hoveround offers flexibility to ATPs 

BRADENTON, Fla. – Hoveround Mobility Solutions has rolled out a range of flexible job benefits for assistive technology professionals (ATPs) who join the company’s team. Hoveround is offering its ATPs the opportunity to mentor the next generation of professionals and the ability to set their own hours or even work part-time, the company says in a press release. “Hoveround’s growth and success are rooted in the expertise and passion of our team,” said Adam Frerichs, CEO of Hoveround Mobility Solutions. “Our ATPs play an essential role in the ongoing innovation of the industry. By offering flexibility, mentoring opportunities, and a collaborative environment, we’re providing professionals the platform to thrive while making a real difference in the lives of our clients.” Hoveround launched Hoveround Mobility Solutions in 2024, allowing the well-known name in standard mobility devices to expand into complex rehab technology, and positioning it to become a major player in that largely consolidated market. The company says its ATPs work closely with marketing, customer service teams and fellow professionals to develop personalized mobility solutions that have a direct and meaningful impact. “The heart of mobility solutions is not just in technology, but in the people behind it,” says Grant Klinedinst, director of CRT operations. “ATPs are integral to every step of the process, and we value the deep connections we form with our clients. ATPs play a pivotal role in helping individuals regain independence and enhance their quality of life.” 

United Spinal, Airbnb match wheelchair users in LA area with lodging 

NEW YORK – United Spinal Association and Airbnb.org are joining forces to help wheelchair users impacted by the Los Angeles-area wildfires. Airbnb.org is offering wheelchair users who are displaced by the LA wildfires and eligible for its program up to 30 days of lodging in accessible stays in the region. United Spinal Association will facilitate Airbnb.org bookings through its disaster relief program, Ready to Roll. "Overcoming the challenges presented to people with disabilities by natural disasters requires the formation of a united front by non-profits, the government and leading enterprises,” said Vincenzo Piscopo, United Spinal president and CEO. “We cannot tackle these crises alone. I am deeply honored to partner with Airbnb.org to support wheelchair users impacted by the California fires. This collaboration exemplifies the critical role of collective action in relief and recovery.” As part of Ready to Roll and with generous support of the Neilsen Foundation, United Spinal has distributed life-saving grants to survivors of natural disasters for the better part of a decade. These grants have enabled wheelchair users to rebuild their accessible homes, replace costly durable medical equipment and accessible vehicles, and endure evacuations and other disruptions to everyday life. Wheelchair users affected by the wildfires can find out more information and apply here.    

BOC seeks next Certificant of the Year 

OWINGS MILLS, Md. - The Board of Certification/Accreditation (BOC) is calling for nominations for its Certificant of the Year Award. The award recognizes one BOC-certified individual for outstanding achievements in service, research and outreach. "Our Certificant of the Year Award program remains a distinguished opportunity to honor the exceptional skills and contributions of BOC-certified professionals," says BOC President and CEO Judi Knott. "We look forward to celebrating the remarkable work of our next honoree and the positive impact they make in their communities." The BOC Certificant of the Year Award distinguishes a professional in good standing in any of BOC’s six certification areas (DME Specialist, Mastectomy Fitter, Orthotic Fitter, Orthotist, Pedorthist or Prosthetist). Nominees should demonstrate exceptional service to patients, notable achievements in research, commitment to giving back to the community and/or outreach to developing countries or other underserved areas. BOC will accept nominations online at www.bocusa.org/certificant-of-the-year through Friday, Feb. 28, 2025. Nominations can be submitted for a colleague, coworker or industry professional; family member and self-nominations are not permitted.