In brief: ResMed delay, wheelchair overpayments, diabetes acquisition

SAN DIEGO – ResMed continues to experience delays synching data from its PAP devices into myAir and AirView, as well as systems that integrate with AirView, the company announced in a status update on Aug. 10. 

The company says it recently sent an over-the-air firmware update, significantly increasing the amount of data being sent between its devices and its AirView cloud server, resulting in backlogged and delayed data in myAir and AirView. 

“We know how important access to your patient’s data is, and we are working around the clock to resolve the delay so that patient data can be updated in AirView and systems that integrate with AirView as soon as possible,” the company stated. “Patient therapy data is safe and still being stored on patient’s devices where it can be viewed by your patients via the ‘My Sleep View’ function on the device itself. We expect the data to be restored in AirView and myAir over the next few weeks, at which time you will be able to review your patient’s therapy and adherence data, and your patients will be able to resume fully using myAir to track their nightly PAP therapy data.” 

The update introduced two new features and an improvement to the communication capabilities of the AirSense 11. 

ResMed says it will continue to provide updates on its website, and through myAir and AirView. 

“Thank you for your patience and understanding,” the company stated. 

OIG: Medicare overpaid for wheelchair repairs 

WASHINGTON – Medicare paid $30.1 million in repair costs for wheelchairs that exceeded the federally recommended limit during their reasonable useful lifetime, according to a new report from the Office of Inspector General. 

Under Medicare, if the DME MACs determine that a beneficiary-owned wheelchair (after the 13-month rental period) will not last the full 5-year reasonable useful life (RUL), the supplier is responsible for replacing the wheelchair without charging the beneficiary or Medicare. The DME MACs can make this determination by considering whether the total cost of repairs exceeds 60% of the cost of the wheelchair. 

The OIG found that 73% of the repairs it reviewed from 2016-2021 were paid below the 60% replacement cost (504,794 out of 688,948 repairs). However, it found the remaining 27% of the repairs were beyond the 60% replacement cost. 

As a result, the OIG says 660 suppliers were potentially paid $30.1 million in unallowed Medicare payments and $7.6 million in unallowed coinsurance.  

The OIG made several recommendations to CMS to strengthen repair requirements: 

Strengthen Medicare requirements to ensure that DME MACs review accumulated costs of repairs made to wheelchairs during their 5-year RUL that exceed a certain cost limit and use this cost limit as a basis for determining when wheelchairs furnished by suppliers will not remain serviceable for their entire RUL; 

Implement system edits to identify for review claims for repairs made to wheelchairs during their 5-year RUL when the accumulated costs of repairs have exceeded a certain cost limit; and 

Take appropriate action for suppliers that consistently bill for repairs made to wheelchairs during their 5-year RUL that exceed the federally recommended cost limit or the cost limit used as the basis for determining when wheelchairs furnished by suppliers will not remain serviceable for their entire RUL (e.g., by educating suppliers on proper billing and recovering improper payments).  

CMS concurred with the recommendations. 

InfuSystem sees sixth straight quarter of record revenues 

ROCHESTER HILLS, Michigan – InfuSystem Holdings reported net revenues of $31.7 million for the second quarter, an increase of 17% compared to the prior year.  

Net revenue for Patient Services (formerly Integrated Therapy Services) was $19.3 million, an increase of 12% compared to the prior year, while net revenue for Device Solutions (formerly Durable Medical Equipment Services) was $12.4 million, an increase of 27%.  

“I am extremely pleased with the results of the second quarter, which reflect the sixth consecutive quarter with record revenues," said Richard DiIorio, CEO. "We continue to demonstrate positive momentum against our plan by delivering solid revenue growth of 17% for the second quarter. The strength of our core business coupled with the execution of our long-term growth strategy in biomedical services and wound care, drove double-digit growth for both Patient Services, with revenue up 12%, and Device Solutions, with revenue up 27%. Our current progress is a direct result of our team’s hard work and commitment to providing high-level service and solutions to our patients and providers.” 

The company reported gross profit of $16.4 million for the quarter and adjusted EBITDA of $5.8 million. 

InfuSystem also adjusted its outlook for the year. 

“Given our positive momentum, we now believe our current year revenue growth to exceed the top end of our previous range of 8% to 10%, and adjusted EBITDA margin to be between 17% and 18% for the year,” said Dilorio. “Our unwavering commitment to help people live healthier and longer lives provides the foundation to deliver meaningful growth and drive shareholder value for our loyal shareholders in the years to come.” 

VGM welcomes Fisher & Paykel as vendor partner 

WATERLOO, Iowa – VGM & Associates has announced a new partnership with Fisher & Paykel Healthcare. With the addition of Fisher & Paykel Healthcare to the VGM & Associates portfolio of vendor partners, members now have access to F&P’s myAirvo line of products. "By adding myAirvo to our COPD portfolio, we embrace the power of innovation and elevate our commitment to improving respiratory care,” said Boone Lockard, director of VGM Respiratory. “With myAirvo's advanced technology and patient-centric design, our members empower individuals living with COPD to breathe easier and live their lives to the fullest.” VGM members will also have access to F&P’s CPAP masks. “We are excited to be partnering with VGM to expand member access to F&P’s world-leading CPAP masks and humidified high flow therapy devices,” said Steve Polgar, vice president of sales & marketing for Fisher & Paykel Healthcare. “F&P has been a technology leader in CPAP masks for more than 20 years. Now, with the addition of the myAirvo device to the offering, VGM members can access unique technology to support patients in the treatment of various respiratory conditions, including COPD.” 

ADDvise Group to acquire Diabetic Supplies 

STOCKHOLM - ADDvise Group, a supplier of equipment to health care and research facilities, has entered into a share purchase agreement with the owners of Diabetic Supplies Inc. to acquire all shares of the company. ADDvise Group will acquire Diabetes Supplies for an initial cash purchase price of $9.5 million, with two potential earn-outs of a total of $5.1 million, providing that Diabetic Supplies achieves certain determined financial targets. Diabetic Supplies’ revenue for the 12 months ended June 30, 2023, was $8.1 million, with an EBITDA of $3.3 million, corresponding to an EBITDA margin of 40.4%. ADDvise will fund the acquisition through its own funds and existing credit facilities. It believes the acquisition will have a positive impact on its earnings per share during the financial year 2023. ADDvise Group expects to close the acquisition at the beginning of September 2023.  

Reliable Medical re-aligns roles, rebrands Orbit 

MINNEAPOLIS – Reliable Medical is re-aligning its leadership and moving Brandon Bliss, former CEO of Orbit Medical, which it acquired in December 2022, into an executive vice president role, where he will oversee growth and operations for all divisions. The company also plans to fully integrate and rebrand Orbit as Reliable. “Under Brandon’s direction, we expect continued thoughtful and intentional growth, while maintaining a focus on our core customer and best in class service,” said Katie Stevens, CEO. “I couldn’t be more excited about the caliber of team that we have built as the company has grown and evolved rapidly. Putting culture first and being thoughtful about the type of leadership we support here has resulted in a team of over 500 people that is motivated, connected and loyal. We are incredible thankful for that and are excited about all that still lies ahead.” Other members of the Orbit team, as well as leaders from Reliable’s acquisition of Capstone Medical Partners, will also be shifting into roles with a national focus using their key talents. 

Inogen’s FreshAir@Inogen campaign earns DEI nomination 

GOLETA, Calif. – Inogen has been named a finalist in the Diversity, Equity & Inclusion Commitment category of Ragan’s CSR & Diversity Awards Program for its FreshAir@Inogen campaign. The campaign, which was launched in June, is led by the company’s internal Diversity, Equity, Inclusion, Belonging & Accessibility Taskforce. The taskforce established a vision and principles to guide their work as they tackled modernizing benefit plans, improving selection processes, ensuring equitable compensation, developing a monthly roadmap of internal communications and stories by associates about their experiences and achievements, compiling engagement surveys, mentoring, and offering both psychological safety and inclusive leader training. “The ways that our associates have embraced this work provide endless proof points celebrating the strength of our culture and desire of our team members to make a difference every single day,” said Jen Yi Boyer, executive vice president and chief human resources officer. “Our focus on initiating collaborative dialogue through shared storytelling at all levels of the organization from the board of directors to our front-line teams created a sense of community and belonging leading to measurable improvements in engagement.” The winners will be announced at a special awards luncheon in New York on Sept. 28, 2023. 

ACHCU adds three new tracks 

CARY, N.C. – ACHCU, the educational and training division of the Accreditation Commission for Health Care, has added three new program tracks for its flagship ACHCU Academy event set to take place Jan. 24-26 in Orlando, Fla. With a theme of achieving excellence in a health care setting, home health, hospice and compounding pharmacy leaders will join hospital clinical, administrative and facilities management specialists for the three-day, in-person, educational and networking event. "With the latest additions to ACHCU Academy, we aim to empower our valued attendees to not only achieve accreditation success but also participate in a highly engaged community of practice," said Greg Stowell, associate director for ACHCU education and training. "Our unwavering goal for Academy is to bring ACHCU to a broader audience, focusing on vital health care topics through expert-led sessions that cater directly to our customers' most pressing needs." ACHCU Academy offers real time interaction with peers and ACHC experts for problem solving and practice sharing, plus education on compliance with CMS regulations, U.S. Pharmacopeia (USP) standards and ACHC requirements.  With more than 70 sessions planned, attendees may choose to focus on the topics most important to them, while having the opportunity to network with industry leaders and their peers. To register, visit https://achcu.com/academy/. For more information about ACHCU events and resources email customerservice@achcu.com or visit https://achcu.com/.