Viemed comments on Philips, OIG report

LAFAYETTE, La. – The recent Philips recall on certain CPAP devices and ventilators hasn’t created a disruption for Viemed Healthcare and may even provide an opportunity for growth, said CEO Casey Hoyt during a call to discuss the company’s second quarter earnings. 

“Viemed has been proactively acquiring replacement inventory from alternative manufacturers,” he said. “We have always been a device-agnostic company, focused on service rather than equipment, and there couldn't be a more pertinent time to be positioned to capitalize on opportunities presented by the recall.” 

Viemed reported net revenue of $27.4 for the quarter ended June 30, 2021, an increase of 13% over the same quarter in 2020. In continued signs of a rebound that began last quarter, the company saw its vent patient count increase by 5% since March 31. 

The company also doesn’t expect to see a negative impact on its financials from the recall, said Hoyt. 

“Our dialogue thus far with Philips is that the entire cost structure will be pushed onto them,” he said. “All of the PAP trade-outs will be handled by Philips. We have delivered a list of active patients, and they will be handling that.” 

Executives also provided an update on a recent Office of Inspector General report, issued in May, that says most of the Medicare claims submitted for non-invasive ventilation by Viemed, under its original name Sleep Management, did not comply with Medicare requirements, something that the company has pushed back on. Todd Zehnder, COO, reiterated on the call that of 39 patients CMS failed, 15 had been reviewed by CMS in prior audits and passed. 

“The company has not accrued any liability related to this ongoing matter as we continue to believe these patients qualified for the CMS rules, and eventually will be overturned through the appeals process, which includes redetermination, reconsideration and ALJ, and will, ultimately, take some time to work to a final resolution,” he said. “Our hope is that this situation will provide an opportunity to establish formulary rules related to NIV, and we are working diligently to provide input on that front.”