KCI still without contracts
SAN ANTONIO – Acelity—formerly Kinetic Concepts—has contracted with suppliers to provide negative pressure wound therapy products, while it continues fighting for its own contract, company execs say.
In an earnings call Aug. 2, CEO Joe Woody said the company has contracted with suppliers in 116 of the 117 Round 2 re-compete bid areas to provide continued access to its products.
“In the medium and long term, we will remain in discussions with CMS regarding our reinstatement as a direct partner and will continue to provide direct support to Medicare customers throughout the rural non-bid markets,” he said.
In a May 19 letter to customers, Acelity said it was not awarded contracts based on a technical disqualification. The company is the largest provider of NPWT pumps (E2404). In 2014, it received about $77.1 million from Medicare, according to the HME Databank. Total Medicare spending on that code was about $88.5 million that year.
Also from the earnings call: Revenue for Acelity’s advanced wound therapy products was $355 million for the second quarter, according to a local news article. Total revenue was $472.4 million.
KCI was founded in 1976. In 2011, it was acquired for $6 billion by a private equity consortium led by Apax Partners. In 2014, KCI, along with LifeCell and Systegenix, which it had acquired, rebranded as Acelity. The company is privately held. hme