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In brief: MSC buys Repair Authority, Inogen pauses some manufacturing, CPAP.com receives investment

In brief: MSC buys Repair Authority, Inogen pauses some manufacturing, CPAP.com receives investment

FORT WORTH, Texas – MSC Biomedical Services has acquired Repair Authority to form an HME repair service provider that services all 50 states. 

In the near term, MSC Biomedical and Repair Authority will continue to operate independently. 

“This deal unites two of the oldest and most well-respected HME repair companies in the U.S.,” says Jonathan Hadley, CEO of MSC Biomedical Services. “This acquisition solidifies MSC Biomedical as the definitive market leader in our space by repair volume, technician count, dealers supported, total square footage and customer satisfaction. This is the first step toward creating a true national repair network.” 

The combined company, which will continue to provide repairs of stationary and portable oxygen concentrators, CPAP and BiPAP devices, ventilators and other home respiratory equipment, holds Authorized Warranty Service Center contracts, including contracts with Philips Respironics, ResMed, Invacare, Drive DeVilbiss, Nidek Medical, O2 Concepts and CAIRE. 

The company will service HME dealers out of four locations in Fort Worth, Texas (MSC), Houston (MSC), Colorado Springs, Colo. (MSC), and Strongsville, Ohio (Repair Authority). 

“We are thrilled to have the opportunity to join forces with a company with a reputation as stellar as MSC Biomedical’s,” says Jesse Keirn, CEO of Repair Authority. “Together, we’ll have a footprint that reaches across the United States, allowing us to serve large national and regional HME dealers, as well as smaller independent providers.”  

In addition to Hadley and Keirn, the executive team for the company will include Dan Meyer as chief revenue officer and Jason Ziebro as COO, the same positions they held at Repair Authority prior to the acquisition. 

Terms of the deal are undisclosed. 

CPAP.com eyes next phase of growth 

HOUSTON and NEW YORK – CPAP.com has received a strategic investment from global investment firm Cathay Capital, the company announced today. 

CPAP.com will benefit from Cathay Capital’s support as it accelerates its development and strengthens its leadership position in the field of sleep apnea treatment.  

“We’re honored to partner with the entire Cathay Capital team to guide us in driving the next phase of our growth,” said Johnny Goodman, co-founder and CEO of CPAP.com. “In Cathay, we’ve found a diversity of ideas and networks spanning three continents, an alignment of shared values and a clear path to furthering our mission of being the place for all things sleep apnea.” 

Founded in 1999, CPAP.com is a direct-to-consumer provider of CPAP machines, supplies and accessories via its e-commerce website.  

CPAP.com points out demand for sleep apnea equipment is expected to increase at a compounded annual growth rate of more than 6% from 2021 to 2028 in the U.S. and globally, driven by an aging population, increasing rates of obesity and increasing awareness of OSA. 

“CPAP.com has been an innovator in the OSA space with an impressive and sustained growth trajectory since its founding,” said Andre Puong, partner of Cathay Capital. “We are excited to work with the team in the next phase of the company’s journey and to build on their hard work. The Cathay team looks forward to leveraging its experiences and resources in e-commerce and health care to accelerate the development of the company’s digital infrastructure and product offering to support its leadership in not only the PAP equipment market, but also in the broader market serving the increasingly important concept of sleep wellness.”  

Johnny Goodman and company CFO Carolyn Goodman will remain in their roles and sit on the board of CPAP.com’s new holding company Somnum Bene Holdings, alongside members of the Cathay Capital team. 

TM Capital served as exclusive financial advisor to CPAP.com in connection with the transaction. 

Inogen temporarily halts manufacturing at some locations 

GOLETA, Calif. – Inogen says its revenues are expected to increase for the fourth quarter of 2021, but a chip shortage has forced the company to temporarily suspend manufacturing operations at its Texas and California locations. 

Inogen doesn’t expect to furlough any employees as a result of the suspension, as the company currently anticipates restarting manufacturing at all locations around mid- to late February 2022 based on the information available to date. 

For the fourth quarter 2021, Inogen expects revenue to be in the range of $75.9 million to $76.9 million, up 2.6% to 3.9% from the same period in 2020. 

For the full year, it expects revenues in the range of $357.5 million to $358.5 million, up 15.9% to 16.2% from 2020. 

“I am proud of how the organization performed in the fourth quarter of 2021, despite the challenges relating to the constrained availability of semiconductor chips," said Nabil Shabshab, Inogen’s president and CEO. "Our results for the full year demonstrate the progress we are making to build and strengthen capabilities and operating disciplines, drive focused execution behind our new strategic imperatives, and selectively invest in our business to lay the foundation for more sustainable and durable performance and growth." 

Direct-to-consumer sales are expected to be approximately $33 million for the fourth quarter of 2021, a 23.3% increase vs. the same period in 2020. The increase was primarily driven by higher average selling prices over the same period last year.  

Rental revenue is expected to be approximately $13 million in the fourth quarter of 2021 compared to $9.4 million in the fourth quarter of 2020, primarily due to increased patients on service, higher billable patients as a percent of total patients on service, and higher Medicare reimbursement rates. 

Domestic business-to-business sales are expected to be approximately $10.3 million in the fourth quarter of 2021 compared to $24.2 million in the same period in 2020, driven primarily due to the supply chain constraints that limited product availability in this channel. 

Rehab Medical expands presence in Midwest 

INDIANAPOLIS – Rehab Medical has opened a new office in Elmhurst, Ill., to serve the Chicago market. 

The new office is the company’s first in Illinois. Previously, it served customers in the state through offices in neighboring states. 

“Our growth goals for 2022 are set and they start with launching a new market in Chicago,” said President Kevin Gearheart. “Rehab Medical has a consistent growth mindset that ties into our mission to improve lives. The more we grow, the more we can impact others and we expect the Chicago market to be a great fit.” 

The new office will be led by Sales Manager Eric Talbot and Operations Manager Brian Evans. 

Rehab Medical, which says it grew 30% in 2021, most recently acquired Austin Wheelchair Company last fall. 

The company, which was founded in 2005, serves more than 15,000 customers per year across 15 states nationwide.   

EW’s Focus Conference pushed to May 

WATERLOO, Iowa – Essentially Women’s Focus Conference has been rescheduled to May 1-3, 2022, “out of an abundance of caution” due to a recent surge in COVID-19 cases, say organizers. The event was originally slated to take place Feb. 5-7 at the Sheraton Sand Key Resort in Clearwater Beach, Fla., “The safety and health of our attendees, exhibitors, speakers and staff is our key priority,” said Nikki Jensen, vice president of Essentially Women. “We have a responsibility to keep everyone safe as they learn and network with their peers. By shifting later to Spring 2022, we hope that the current surge in COVID cases will have decreased. We are looking forward to seeing each other in person in May.” More information will be sent to those who are registered for the conference. Additional details about the conference and registration may be found at focus.essentiallywomen.com

CMS updates Master List 

WASHINGTON – CMS had updated the Master List of DMEPOS Items Potentially Subject to Face-to-Face Encounter and Written Order Prior to Delivery and/or Prior Authorization Requirements. CMS has added 31 items to the Master List and deleted five. It has added 11 to the Required Prior Authorization List, and it has added seven new codes to the face-to-face and WOPD Required List. The Master List includes items that meet CMS’s criteria to be added to the Prior Authorization program and/or F2F and WOPD Required List. An item being added to the Master List does not mean it will be added to the two required lists – it just means that CMS has the option to include it in the future. Implementation will be phased in, in three stages, beginning April 3 in California, Florida, Illinois and New York. 

InfuCare Rx receives investment from One Equity Partners 

NEW YORK – InfuCare Rx, a national provider of specialty infusion therapies and comprehensive clinical therapy management services to patients with complex conditions, has received a strategic investment from One Equity Partners, a middle market private equity firm. "OEP's investment in InfuCare Rx aligns squarely with our thesis that care will continue to shift towards the lower-cost home setting and our focus on the importance of home-based management of complex chronic conditions," said Greg Belinfanti, senior managing director at OEP. "COVID has only accelerated the preference for home-and community-based care delivery; InfuCare Rx is well-positioned to meet this growing demand." Terms of the deal were not disclosed. The Fairfield, N.J.-based InfuCare Rx has locations in New Jersey, Pennsylvania, Maryland, Louisiana, California and Texas, and services more than 4,000 patients across 43 states using its InfuCare Rx digital care management platform 

Breast Pump Coalition to push for Illinois sales tax repeal 

WASHINGTON - A subgroup of AAHomecare’s Breast Pump Policy Coalition has engaged lobbyists in Illinois to assist with repealing the sales tax for breast pumps. State Rep. Barbara Hernandez in November introduced H.B. 4234, which would allow breast pumps, breast pump collection and storage supplies, and breast pump kits to be exempt from the taxes beginning July 1, 2022. The bill now has 14 co-sponsors and was referred to the Rules Committee on the opening day of the legislative session on Jan. 5. Currently, only eight states in the U.S. exempt sales tax for breastfeeding equipment, while infant formula is generally tax-free. A handful of states have limited exemptions, where pumps are exempt subject to certain stipulations. A companion bill is expected in the Senate. If you would like further information about this initiative, please visit parityforpumps.com/illinois

NEMEP calls for volunteers 

ALBANY, N.Y. – The Northeast Medical Equipment Suppliers Association is looking for committee volunteers for 2022. NEMEP has several working committees that strengthen the value of its membership, the association says. Committees with openings include Membership, Payer Relations, Legislative and Education. Most committees hold monthly conference calls, depending on need. For more information or to volunteer, email Beth Bowen, executive director, at [email protected] 

Study: RT home visits can reduce COPD readmissions 

YARMOUTH, Maine - At-home interventions by a respiratory therapist can reduce hospital readmission rates among patients with COPD, according to a new study published in Respiratory Care. Study authors looked at outcomes in patients enrolled in a respiratory therapist-led COPD Disease Management Program, comparing outcomes of 658 patients who were discharged from five hospitals in the Atlantic Health System with outcomes of 435 patients who were discharged and then enrolled in the management program. Those in the intervention group received a follow-up phone call from a respiratory therapist within two days of discharge. The therapist then visited the patient’s home three times over a four-week period. At 30 days, 22.3% of patients who were hospitalized before the launch of the management program had been readmitted to the hospital, compared with 12.2% of patients who underwent the post-hospital intervention program. At 60 days, readmission rates were 33.9% and 12%, respectively. By 90 days, all-cause readmissions were 43.5% in the pre-intervention group and 13.1% in the group that received the home visits. 

Medically Home ‘powerfully strengthens’ model 

BOSTON – Medically Home has announced a new $110 million round of funding from strategic investors, including Baxter International, Global Medical Response and Cardinal Health. Cardinal Health, Mayo Clinic and Kaiser Permanente are providing additional capital on top of their previous investments, demonstrating confidence in the growing expansion of the model nationwide, Medically Home says. "The addition of these strategic national partners powerfully strengthens our logistics capability which our health system providers need to safely and reliably care for patients in their homes,” said CEO Rami Karjian. “The accelerating decentralization of high acuity care from hospitals and other institutional sites to an ever-increasing number of patient's homes enabled by Medically Home validates the importance of an ecosystem of health care partners working together on behalf of patients and the clinicians that care for them across the country." Medically Home says its model allows patients to receive high and lower acuity care across the care continuum in the comfort and convenience of their homes. This capability is designed to increase health system capacity and resiliency, while meeting the needs and wants of patients, who often prefer to be cared for at home or in a homelike setting. The company says more than 7,000 patients have been treated using its platform and ecosystem, as delivered by health systems across the country, and utilization is expanding rapidly. 

Parachute Health joins Diamond level 

WASHINGTON – Parachute Health is AAHomecare’s newest Diamond-level corporate partner. “We’re gratified to see another highly regarded company step up their support for high-impact DME public policy efforts at a critical time for this industry,” said Tom Ryan, president and CEO of the association. “Forward-thinking DME stakeholders like Parachute Health see the opportunity to improve the reimbursement and regulatory environment for our industry and are demonstrating their commitment to making that a reality.” AAHomecare created the Diamond-level corporate partner level last year. It represents a 25% increase in dues for the association’s public policy initiatives over the previous top level. In addition to increasing its financial support of AAHomecare, Parachute Health plans to work closely with the association’s Payer Relations Council to further demonstrate the value of DME to payers. The inaugural Diamond class comprises AdaptHealth, Apria, Byram Healthcare, Cardinal Health, Lincare, McKesson, Medline, Medtrade, Philips, ResMed and Rotech.   

RRI releases new catalog 

ST. LOUIS – Responsive Respiratory, Inc. has released its latest product solutions catalog, this year highlighting its newest entry into the sleep market, the Purify O3 Elite Sanitizer. “We’ve expanded our offering with the Purify O3 Elite – a small, easy to use sanitizing device for PAP accessories,” said Tom Bannon, president. “This addition complements the first-generation Purify O3 sanitizer, now a staple accessory for sleep patients.” The catalog is a complete respiratory resource guide for the home health care, hospital and EMS markets, the company says. It also features a new format for oxygen cylinder cases, including a color-coded selection guide to help providers identify the right case to fit patient needs. 

HR buys catheter manufacturer 

YORK, Pa. – HR Pharmaceuticals has acquired Medical Technologies of Georgia, a manufacturer specializing in catheter products for paraplegics and those with limited dexterity. “The acquisition will enable HR to offer a wide range of urology products and increase patient access to MTG’s innovative brand of adult and pediatric catheters,” said Colby Wiesman, president and CEO of HR. Once integraed, HR says it will be the only independent catheter manufacturer remaining in the United States. Randy Golden, whose family founded MTG in 1997, will transition to HR’s team. HR has amassed a portfolio of branded products, including its namesake HR Lubricating Jelly, Surgilube Surgical Lubricant, EcoVue Ultrasound Gel and TruCath urological products. "MTG's product line complements our current product portfolio and will accelerate our strategy to become a market leader in urological products that service patients across the continuum of care," Wiesman said. "We look forward to investing in and growing the business for our customers, employees, and community." 

The Wound Pros announces two new hires 

LOS ANGELES – The Wound Pros is growing its team with Yen Le as the head of the clinical department and Anastassia Johnson as a senior manager. Le has worked as a registered nurse since 2012 and nurse practitioner since 2016. She is a board-certified family nurse practitioner. Johnson brings more than a decade of experience in project management, administration, customer support, quality assurance, training and analytical decision-making. The Wound Pros specializes in the treatment and management of chronic non-healing wounds at long-term care facilities. It also partners with facilities to provide advanced wound care dressings for acute and chronic wounds, as well as education for staff. 

Foundation studies digital health’s impact on outcomes for COPD patients 

NEW HAVEN, Conn. – The COPD Foundation, a patient advocacy and research organization, and Wellinks, a digital health care company that offers an integrated, virtual COPD disease management solution, have partnered to recruit eligible patients for a new study through the foundation’s COPD Patient-Powered Research Network. Researchers plan to enroll between 100 and 150 adults with COPD for a 24-week prospective research study of the Wellinks solution. “We are passionate about ensuring that people with COPD have access to the best treatment options available,” said Ruth Tal-Singer, PhD, president and chief scientific officer of the COPD Foundation. “We are excited to use our COPD PPRN to recruit individuals to assess this novel COPD management program. Especially after COVID-19, the Wellinks platform could be impactful in helping patients manage their health, and we look forward to learning more through this study.” Wellinks combines virtual pulmonary rehabilitation, personalized health coaching and a patient-friendly app to access monitoring through connected devices. The study aims to determine whether Wellinks can improve outcomes for patients with COPD by measuring the impact on health-related quality of life, health care resource utilization and patient satisfaction. Researchers will assess impact alongside additional measures, such as pulmonary function and symptoms. 

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