In brief: RAC reviews, Sunrise acquires, Protech gains

WASHINGTON – Performant, Medicare’s RAC, has notified providers by letter that, per authorization from CMS, it will resume certain medical review activities, according to the van Halem Group.  

The notification says providers have an additional 30 days to submit discussion requests for review for result and initial findings letters dated Feb. 27, 2020, to March 27, 2020. It also advises providers to access the Provider Portal to review any claims pertaining to those dates. 

Performant most recently posted CMS-approved complex reviews for hospital beds and manual wheelchairs to its website on March 1, 2020. 

The van Halem Group noted that these reviews specifically include dates of service details: “Claims with dates of service on or after Jan. 1, 2020, will be excluded,” Performant states. 

“This falls in line with announcements by the DME MACs that post-payment reviews for items/services provided before March 1, 2020, would start on Aug. 17, 2020,” the van Halem Group stated. 

CMS announced in July that it would resume audit activities in August. 

Sunrise buys James Leckey Design 

FRESNO, Calif. – Sunrise Medical has acquired two pediatric mobility brands, Leckey and Firefly. 

Sunrise Medical’s acquisition of James Leckey Design, along with its subsidiaries Firefly Friends and Vidal Global, extends the company’s pediatric product offering and provides a complementary fit with its existing offering in that market, it says. 

“The pediatric sector is strategically important for us as we continue to improve people’s lives,” said Thomas Babacan, president and CEO. “Children and families are part of the core focus of our services.” 

Sunrise Medical has been a distribution partner for Leckey for many years in multiple countries and as a result of the acquisition it will take over exclusive distribution for the company’s products in the North American market. 

Sunrise Medical also plans to leverage synergies between the companies in key markets like the U.K. and Germany, furthering strengthening its footprint in those countries. 

“We are also looking forward to leveraging Firefly’s advanced e-commerce business model, digital marketing and customer services to improve our ways of doing business and serving our global customers better,” Babacan said. 

For Leckey, the acquisition gives the company the resources to expand its reach. 

“Our products are highly complementary; Sunrise’s global sales networks, business resources and infrastructure will significantly accelerate Leckey’s global reach and growth; and its broad offering and expertise will provide a solution foundation for further product innovation and wide customer proposition,” said Ben Stocks, CEO of Leckey. 

Protech reports double-digit increases in its customer base 

CINCINNATI – Protech Home Medical reported revenue of $25.9 million for the third quarter of 2020, a 28% increase compared to the same period last year and a 7% increase from the previous quarter. 

Adjusted EBITDA was $5.5 million vs. $3.8 million, a 47% increase year over year. 

The company’s operational highlights for the quarter included: 

• Its customer base hit 37,128 in the third quarter, a 19% increase year over year. 
• Respiratory resupply setups and/or deliveries hit 14,436, a 31% increase. 
• Equipment setups hit 57,551, an 11% increase. 

“The third quarter of 2020 was full of milestones for Protech,” including run-rate revenues of $100 million, said Greg Crawford, CEO and chairman. “The acceleration of the need for in-home health care solutions is being felt across the industry, and powerful tailwinds continue to be felt at our front door. With the strongest balance sheet in our history, we are poised to take advantage of opportunities to significantly scale our business.” 

Protech also restated its plans to acquire a respiratory company in the Midwest.  

Awareness week spotlights complex rehab, accessories  

WASHINGTON – More than 65 organizations and thousands of individuals participated in National CRT Awareness Week Aug. 10-14. 

Their top goal for the week: To get their members of the House of Representatives to sign a letter asking CMS to permanently exempt accessories for complex rehab manual wheelchairs from competitive bidding pricing. 

“Getting as many House members to as we can to sign on to this congressional letter is especially important,” said Don Clayback, executive director of NCART. “The more signatures, the stronger the message to CMS that they need to take action, just like they did for CRT power wheelchairs in 2017.” 

Reps. John Larson, D-Conn., and Lee Zeldin, R-N.Y., who are spearheading the letter, are collecting signatures through Aug. 31. 

Participants during the week represented all sectors of the complex rehab community, including providers, manufacturers, consumers and consumer organizations, clinicians and clinical organizations, and families and caregivers. 

“Each year, CRT Awareness Week gives our industry a chance to spotlight numerous professions in the CRT industry,” said Doug Westerdahl, president of NCART. “This week provided a great opportunity for spreading that message nationally and continuing to build on everyone’s past advocacy work.” 

F&P updates guidance 

IRVINE, Calif. – Fisher & Paykel Healthcare saw lower diagnosis rates of obstructive sleep apnea globally for the first four months of its fiscal year 2021 but mildly elevated rates of mask resupply, the company stated in a recent update. 

The company saw 4% revenue growth for masks for the first four months of FY21 compared to the prior comparable period. 

Still, “we have maintained our assumption that OSA diagnosis rates are reduced for the year,” F&P stated in the update. 

Overall, thanks in large part to growth in home respiratory support, F&P’s home care product group saw 5% revenue growth for the first four months of FY21. 

The hospital group saw 91% revenue growth in the first four months of FY21. 

“Hospital hardware sales have continued to steadily increase over the first four months of FY21 with a more than 390% constant currency revenue growth to the end of July compared to the prior comparable period,” F&P stated. “Our manufactured output of the related consumables has steadily increased over the four months, allowing us to begin some rebuilding of inventory levels after a peak in shipments in April.” 

F&P also provided updated guidance: It now expects full year operating revenue for FY21 to be about $1.61 billion and net profit after tax to about $365 million to $385 million.  

“The updated guide now assumes that global hospitalizations requiring respiratory support steadily return to normal by the end of this calendar year,” the company stated. “It also assumes that countries around the world continue to build respiratory care infrastructure, including inventory of established ICU vents requiring our humidifiers, and that the trend toward nasal high flow as a preferred frontline therapy continues for both COVID and non-COVID patients.” 

Study backs up safety, effectiveness of home infusion, NHIA says 

ALEXANDRIA, Va. – Patients are overwhelmingly satisfied with their home infusion experience, according to the results of the National Home Infusion Foundation’s annual study. When asked if they were satisfied with the overall quality of services on a five-point scale, respondents reported a mean score of 4.7 out of 5. “These study results reinforce that patients are able to receive infusion treatments safely and effectively in their homes and that the home setting remains a preferred site of care,” said Connie Sullivan, president of the NHIA. To conduct the study, the NHIA collected data from more than 32,000 home infusion patients and more than 6,000 completed surveys. The association also found patients felt home infusion clinicians provide clear instructions on how to receive infused medication properly. Nearly 99% of respondents reported they have received adequate instructions for washing hands, self-administering medications and caring for the IV catheters, according to the study.  

F&P plans for 3rd manufacturing facility in Mexico 

IRVINE, Calif. – Fisher & Paykel Healthcare has started planning for its third manufacturing facility in Mexico. “We are continuing to grow our manufacturing capacity to ensure a further increase in supply of our respiratory products is available if required,” said Lewis Gradon, director and CEO. “To expedite availability, the company is utilizing its existing infrastructure and property in Tijuana, Mexico.” The company says the facility will be commissioned within the next two years. F&P completed its second facility in Mexico last year and its fourth facility in New Zealand earlier this year. All together, the three facilities add 17,000 square meters of manufacturing space to a base of 28,400 square meters available prior to construction. 

UPitt wins grant to research accessible autonomous vehicles 

PITTSBURGH – The University of Pittsburgh’s Human Engineering Research Laboratories has received $1 million in grant funding to research the effects of accessible autonomous vehicles and other mobility services. HERL, in consortium with the Uniformed Services University of the Health Sciences and the Catholic University of America, is one of four recipients of the new Tier 1 University Transportation Center grants from the U.S. Department of Transportation. “These investments in four new transportation research centers will help advance innovation and create new solutions to increase accessibility,” said Elaine Chao, U.S. Transportation Secretary. Each center will conduct its research over the next 18 to 24 months. The other three universities receiving grants: Ohio State University, Northwestern University and Georgia Institute of Technology. 

RRI launches online ordering tool 

ST. LOUIS – Responsive Respiratory has expanded its website to include online ordering. RRI’s website, www.respondo2.com, now features a personalized account portal that allows registered providers to access pricing and to order online. “We recognize that a high percentage of the population utilizes the Internet to place orders, especially during this time of remote work arrangements,” said Thomas Bannon, president. The portal allows providers to: mark products as a frequently ordered item, add custom logos to increase referral source awareness, and select a multiple ship-to function. Providers can request access to the portal by contacting their account specialist or by completing the “register for an account” form on the website. 

NorthShore ups e-commerce game 

GREEN OAKS, Ill. – NorthShore Care Supply has named Dhiraj Rustagi to the newly created position of vice president, e-commerce and marketing. Rustagi will lead the effort to expand the reach for NorthShore’s direct-to-consumer diaper brand. His responsibilities will include implementing e-commerce strategies, managing customer acquisition and retention, and increasing market share across the incontinence product lines and consumer segments. He will also identify new growth vehicles and strategies to meet sales and profit goals. Previously, Rustagi served as director of global digital strategy and CX for Omron Global, where he oversaw global digital strategy, digital/e-commerce implementation and digital customer experience enhancements.