More cuts at The Scooter Store

Wednesday, September 19, 2012

NEW BRAUNFELS, Texas – It's going from bad to worse at The Scooter Store, which has announced plans to lay off 220 employees.

The cuts, which will occur across all divisions, represent less than 10% of the company's workforce, according to an article in the Sept. 19 San Antonio Express-News. Company spokesman Tim Zipp blamed the layoffs on reimbursement reductions and changes in claims-processing procedures.

On Sept. 1, CMS implemented a three-year demonstration project that requires durable medical equipment providers in seven states to get prior authorizations for power mobility devices.

Also causing distress: unit sales at The Scooter Store are down 30% compared to this time last year, Zipp said. The company received $59.8 million in Medicare payments in 2011 compared to $94 million in 2009.

Today's news is the most recent in a string of personnel changes for The Scooter Store. Founder and CEO Doug Harrison resigned in March, followed by the departure of several top-level employees. The company has operated with new CEO Marty Landon, formerly of Kinetic Concepts, since July. Industry watchers have speculated that many of the changes may have to do with Sun Capital Partners, which in 2011 invested $25 million into The Scooter Store. 

Michael Clark, The Scooter Store's chief administrative officer and general counsel, is scheduled to testify today about the demonstration project at a U.S. Senate Special Committee on Aging hearing.


Read more about recent Scooter Store changes:

The Scooter Store names new CEO.

Scooter Store: 'Whatever is going on is not good for our industry'.

Scooter Store CEO resigns.