In brief: Rotech’s possible sale, Lincare’s TRO, Medicare’s $736K wheelchair

ORLANDO, Fla. – Rotech Healthcare is said to be exploring a possible sale, according to online news reports. 

Rotech is said to have tapped investment bank Jefferies Financial Group to advise on its sale process, which could value the company at $1.5B.  

In July 2021, the company filed for an initial public offering of up to $100 million in July 2021, with plans to list on the Nasdaq under the symbol ROTK, but paused those plans in 2022, to await more favorable market conditions, President and CEO Tim Pigg told HME News at the time.  

“(We’re) just timed out for now,” said President and CEO Tim Pigg in an email to HME News. “We have not updated but do plan to continue to update once the market changes.”  

More recently, Rotech was awarded contracts to provide home medical equipment services to Humana’s Medicare Advantage HMO members.  

Investment firms Capital Group, Silver Point Capital and Venor Capital Management control the company after helping it emerge out of bankruptcy in 2013. 

Court grants TRO, delaying Teufel’s start date  

PLYMOUTH MEETING, Pa. – Crispin Teufel won't take the reins as AdaptHealth’s new CEO until at least October amid efforts by his former employer to block the move, according to online news reports.  

In a filing with the U.S. Securities and Exchange Commission, AdaptHealth said a U.S. District Court issued a temporary restraining order preventing Teufel from starting his employment with AdaptHealth until Oct. 15.  

Lincare filed a lawsuit in Connecticut district court against Teufel, who was slated to begin his new role Sept. 1, for breach of contract, breach of duty of loyalty and misappropriation of trade secrets.  

Richard Barasch, who stepped in as interim CEO on July 1 after the departure of Stephen Griggs, has agreed to remain in the role until Oct. 31. 

AdaptHealth is not named in the lawsuit. 

Administration rolls out Medicare drug negotiations 

Selected drugs account for $50.5B in costs 

WASHINGTON – The Department of Health and Human services has announced the first 10 medicines under Medicare Part D that have been selected under the Medicare Drug Price Negotiation Program.  

They are: Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp and Novolog insulin products. 

These drugs accounted for $50.5 billion in total Part D gross covered prescription drug costs, or about 20%, of total Part D gross covered prescription drug costs between June 1, 2022, and May 31, 2023, which is the time period used to determine which drugs were eligible for negotiation. 

“Today marks a significant and historic moment for the Medicare program with the announcement of the first drugs selected for Medicare drug price negotiation,” said CMS Administrator Chiquita Brooks-LaSure. “Our goal with these negotiations is to improve access to some of the costliest drugs for millions of people with Medicare while driving competition and innovation.”  

The negotiations will occur in 2023 and 2024 with the negotiated prices effective beginning in 2026. In addition, CMS is announcing more information about patient-focused listening sessions on the selected drugs with interested parties that will occur in Fall 2023. 

“Promoting transparency and engagement continue to be at the core of how we are implementing the new drug law and the Medicare Drug Price Negotiation Program, and that is why we set out a process for the first round of negotiation that engages the public throughout,” said Meena Seshamani, MD, PhD, CMS Deputy Administrator and Director of the Center for Medicare. “Along with the announcement of the selected drugs, we announced CMS’ plans to host a patient-focused listening session for each selected drug to hear directly from patients and others.” 

View the HHS press release. 

View a fact sheet on the drugs selected for the Medicare Drug Price Negotiation Program, as well as more information about the patient-focused listening sessions. 

More information on the patient-focused listening sessions is available at https://www.cms.gov/inflation-reduction-act-and-medicare/medicare-drug-price-negotiation-program-patient-focused-listening-sessions. 

More information on the Medicare Drug Price Negotiation Program is available at https://www.cms.gov/inflation-reduction-act-and-medicare/medicare-drug-price-negotiation. 

Aeroflow Breastpumps survey: More education, resources needed 

ASHEVILLE, N.C. – Sixty-three percent of respondents to a recent survey by Aeroflow Breastpumps felt they needed assistance to properly breastfeed, pointing to a need for more resources and support. 

To understand how breastfeeding impacts postpartum mental health and where resources are needed, Aeroflow Breastpumps surveyed 508 mothers who have had children within the past year, with 409 completed responses. 

According to the survey: 

• 67% of respondents said they have skipped out on activities due to not having the tools or resources necessary to breastfeed in public. 
• About 90% of respondents said they experienced feelings of anxiety, sadness, stress or a low mood after giving birth, with 67% saying that breastfeeding or making sure their baby was fed contributes to their stress and anxiety. 
• More than half (53%) of new mothers experienced anxiety after weaning. 
• 80% of mothers expressed interest in receiving education around the resources and tools available to help their mental health after giving birth. 
• More than 90% feel that education around what mothers should expect with their postpartum mental health needs to be improved. 

"Postpartum already brings so many changes to a woman's body that can impact their mental health, and breastfeeding is just another aspect that can cause new moms to feel stress and anxiety,” said Dr. Jessica Madden, medical director of Aeroflow Breastpumps. “We need to provide mothers with more education and resources to ease their breastfeeding journey, which will ultimately result in better mental health outcomes," "Health insurance and care providers play a huge role in increasing access to critical breastfeeding resources that will help moms reach their breastfeeding goals and ensure their mental health is intact." 

See full survey results here.

Belluscura inks exclusive agreement with InnoMax 

LONDON and PLANO, Texas – Belluscura has entered into an exclusive licensing, marketing and distribution agreement with China-based InnoMax Medical Technology to manufacture and distribute Belluscura's X-PLOR portable oxygen concentrator in China, Hong Kong, Macau and Singapore (the Territories). The agreement will also include the DISCOV-R, the Belluscura's next generation, ambulatory dual flow portable oxygen concentrator, when registration is received in the Territories for both devices. Under the terms of the ten-year Agreement, effective Oct. 1, 2023, Belluscura is to receive annually increasing minimum cumulative royalties over the term of the Agreement. In addition to receiving royalties on licensed products (subject to annually increasing minimum amounts), Belluscura will receive a share of the net profits on sales of accessories. The agreement will be exclusive for a minimum of five years, though if minimum sales quantities are not achieved, Belluscura and InnoMax can mutually agree to grant InnoMax a non-exclusive license for the remainder of the term.  

WellDoc receives FDA clearance for BlueStar insulin calculator 

COLUMBIA, Md. – WellDoc, a provider of digital health chronic care solutions, has received 510(k) clearance from the Food and Drug Administration for its BlueStar diabetes solution. BlueStar provides bolus insulin dose recommendations based on the most recent glucose reading and rate of change from a compatible continuous glucose monitoring (CGM) device. This feature enhances BlueStar’s existing digital coaching capabilities, which guide dietary and lifestyle decisions and assist individuals in self-managing their diabetes. Welldoc is the first company to receive clearance for a CGM-informed bolus calculator specifically designed for adults who manage their diabetes with multiple daily injections of insulin. “This 510(k) clearance is a remarkable achievement for Welldoc and demonstrates our steadfast commitment to transforming chronic care,” said Kevin mcRaith, president and CEO. “We are dedicated to creating new digital health capabilities which leverage the latest innovations like CGM to develop more connected and personalized solutions for individuals with complex health needs.” 

Two charged in Medicare scam for power mobility 

BROWNSVILLE, Texas – Maria Luisa Yzaguirre and Jeremiah Yzaguirre, both of Harlingen, Texas, have been charged with conspiracy to commit health care fraud, aggravated identity theft and money laundering. The charges allege that between 2019 and 2023, the Yzaguires submitted more than $14 million in claims to Medicare for power wheelchairs, power scooters, parts and repairs for 37 individuals. In multiple instances, they allegedly billed Medicare more than $600,000 for parts and repairs for one Medicare beneficiary and falsely claimed to have replaced expensive parts on numerous occasions. According to the indictment, in one instance they billed Medicare approximately $736,072 in parts and repairs for one patient - submitting repair claims 132 times for the expandable controller, 107 times for the motor-gearbox and 84 times for the battery. The patient was bed bound and did not have access to the power wheelchair when the repairs were allegedly conducted. The indictment alleges they used proceeds of the fraud scheme to purchase millions of dollars in real estate, cryptocurrency, stock, a luxury sports car and expensive movie memorabilia. If convicted, they each face up to 10 years in prison for health care fraud and money laundering and a mandatory two years for each count of aggravated identity theft which must be served consecutively to any other prison term imposed. 

Axxess earns HITRUST certification 

DALLAS – Axxess, a provider of home health, home care and hospice software solutions, has become the first care at home technology company providing comprehensive solutions that address the entire continuum of care to earn HITRUST certification. "Axxess has always had a culture of compliance and commitment to the highest security standards," said Andrew Olowu, chief technology officer at Axxess. "It is gratifying to have a third-party organization such as HITRUST attest to our world class processes that ensure our clients' data is protected and managed appropriately. This certification validates our clients’ trust in Axxess.” HITRUST independently reviews and verifies secure data management by healthcare organizations. Through a year-long process, HITRUST has verified that Axxess is meeting necessary data privacy and security requirements.