In brief: Lincare earnings, ATG acquisition, VGM roadshow
CLEARWATER, Fla. – Lincare Holdings came out on top in net revenues and net income for the second quarter and first half of 2012, it announced last week. The provider reported net revenues of $496.2 million for the second quarter compared to $449 million for the same period last year, a 10.5% increase. It reported net income of $47.9 million vs. $42.8 million. Lincare reported net revenues of $997 million for the first half of this year compared to $880.6 million for the same period last year, a 13.2% increase. It reported net income of $94.3 million vs. $89.1 million. The provider says increases in net revenues were due to 11% and 13.7% internal and acquisition growth in the second quarter and the first half of this year, respectively. That growth was offset by 0.5% negative impact from Medicare payment reductions for both the second quarter and first half of this year. Lincare also gave an update on its progress diversifying into anti-coagulation monitoring and other business lines. The provider now has more than 23,000 patients on anti-coagulation monitoring compared to about 10,000 a year ago, a 130% increase. Additionally, “We now have five pulmonary rehabilitation centers open and operating, with aggressive plans to expand our footprint within and beyond the two states in which we are currently operating,” stated CEO John Byrnes in a press release. One of the big reasons Lincare has agreed to be acquired by The Linde Group for $4.6 billion: to speed up growth in these business lines. Lincare also gave an update on its cost-saving measures: It has consolidated 50 of its operating centers in the first half of this year.
ATG Rehab takes over Associated’s rehab biz
ROCKY HILL, Conn. – ATG Rehab has acquired the complex rehab business of Philadelphia-based Associated Medical Specialties, it announced yesterday. ATG rehab will service Associated's patients through its office in Hatfield, Penn. “ATG Rehab will work diligently to transition all current orders as efficiently as possible,” stated Neill Rowland, ATG Rehab Mid-Atlantic director of sales & marketing, in a press release. “ATG works with the same suppliers as Associated so order placements and shipments will be seamless for our customers.” Associated will focus on durable medical equipment and other non-rehab services, and the two providers will co-market their services, according to the release. ATG Rehab has acquired several companies in the past 18 months, most recently in April, when it bought Louisiana-based Custom Holdings and its subsidiaries, Custom Healthcare and Gulf Coast Rehab Equipment.
VGM announces dates for Round 1 re-compete seminar
WATERLOO, Iowa – The VGM Group has announced the dates and locations for its day-long seminar on the Round 1 re-compete. VGM competitive bidding expert Mark Higley will present to HME owners, GMs and other staff on the following dates in the following bid areas: Aug. 22, Irvine, Calif.; Sept. 5, Independence, Ohio; Sept. 6, Moon Township, Pa.; Sept. 12, Florence, Ky.; Sept. 25, Fort Lauderdale, Fla.; Oct. 2, Dallas; Oct. 4, Orlando, Fla.; Oct. 10, Charlotte, N.C.; and Oct. 11, Kansas City. FMI: www.vgm.com/recompete.
GMEA makes second buy in July
PHOENIX – Global Medical Equipment of America (GMEA) has acquired Niles, Ill.-based J Care Home Medical Supplies it announced this week. The deal will allow GMEA to expand into the Midwest, the provider stated in a press release. The 14-year-old J Care serves the Chicago and northern Illinois areas. "(J Care) brings with them a long standing, loyal customer base accustomed to receiving quality service from their experienced staff," stated Harold Halman, CEO of GMEA, in a release. Earlier this month, GMEA announced that it had acquired A&A Medical, which serves the Baltimore-Washington, D.C., market.
MK Battery amps up Power for Funding
ATLANTA – MK Battery will bring something new to Medtrade this fall: consumer organizations. The company announced last week that, as part of its annual Power of Funding initiative with Medtrade, it will create a consumer advocacy pavilion exhibit area where consumer organizations and nonprofits will be able to network with providers and manufacturers. “We are taking the third year of our successful ‘Power for Funding’ campaign to the next level,” stated Wayne Merdinger, vice president of business development and international sales for MK Battery, in a press release. MK Battery contributed $50,000 to kick-start fundraising for this year’s initiative, most of which will be donated equally to the participating consumer organizations.
Several consumer organizations have already committed to participate in the event, according to the release.
Complex rehab stakeholders circulate flyer
WASHINGTON – Stakeholders working to promote H.R. 4378, a bill that would create a separate benefit for complex rehab, have created a "Call to Action" flyer. The flyer encourages consumers, clinicians, suppliers and manufacturers to ask representatives to endorse the bill. Twenty representatives have signed onto the bill so far. The flyer is available at www.access2crt.org.
Short takes: CPI-U, interest rate
AAHomecare estimates a Consumer Price Index for Urban Consumers (CPI-U) of 1.7% will result in a 0.5% increase for the DMEPOS schedule. The fee schedule is subject to an annual update tied to the CPI-U, minus a productivity adjustment from CMS…The U.S. Department of the Treasury has notified the Department of Health and Human Services that the private consumer rate has been changed to 11% effective July 18 for Medicare overpayments and underpayments.