Archive: January 2002

KING OF PRUSSIA, Pa. - Home Health Corporation of America (HHCA) emerged from bankruptcy last month a leaner, more focused company that no longer supplies home medical equipment. "We're no longer a one-stop-shop," CEO David Geller told HME News. "We either sold, closed or divested ourselves of everything that was not home nursing. Like many out there in the industry, we had issues making the one-stop-shop work, and in order to survive, we went back to nursing only." HHCA exited Chapter 11 as a...

NORFOLK, Vir. - The family of a 10-year-old boy struck and killed when a Lincare delivery van ran a stop sign two years ago tentatively settled with the company for $2 million last month. David Stevenson's family accepted the settlement - on the condition that Lincare doesn't appeal - just prior to a jury recommending that the company pay the family $4 million. The Stevenson's attorney said the family chose to settle rather than prolong the legal battle. Lincare, which claimed the boy had been...

EUGENE, Wa. - Washington providers have their fingers crossed that state legislators will vote to repeal the sales tax on durable medical equipment this month. "We're optimistic that this baby is going to fly," said Tom Coogan, a member of the Pacific Association of Medical Equipment Suppliers (PAMES) Sales Tax Exemption Committee. "This bill has a good feel about it." While eliminating the sales tax on home medical equipment would benefit providers, it would also help beneficiaries and others...

PITTSBURGH, Pa. - Respironics is pushing the $500 million sales envelope now that it has announced plans to acquire Nova-metrix, a cardiorespiratory company whose primary business is centered in the hospital. The $90 million stock swap would provide ancillary opportunities to the company's HME customer, as it creates increased utilization of the companies non-invasive ventilation technology. Novametrix products include electronic medical sensors and monitors that noninvasively provide continuous...

INDIANAPOLIS, Ind. - Associated Medical Products, a distributor that caters to the home care and long-term care market, sat poised last month to pay $14 million to acquire bankrupt Perigon Medical Distribution. Perigon filed for Chapter 11 bankruptcy protection in November. Officials from Associated Medical Products (AMP) did not return phone calls. But according to bankruptcy documents: "The price offered by the Purchaser represents the most favorable option. In light of the fact that the offer...

YARMOUTH, Maine - The role the Midwest Association for Medical Equipment Services (MAMES) played in forming Arizona's state association has shined a bright light on the growing popularity and efficiencies of regional associations. The Arizona Medical Equipment Suppliers Association (AZMESA) formed late last year under the guidance of Rose Schafhauser, executive director of MAMES. Schafhauser, who's logged 20-plus years in the HME industry, has also been named executive director of AZMESA. "They...

ATLANTA - Graham-Field has got a new CEO and some new notable additions to its board. Michael Joffred will succeed Tom Opladen as CEO and chairman of the board. Joffred had served as GF's CFO through the restructuring process. At the time of his appointment, Opladen expected that his time at the helm would be short. Three other members of Graham-Field's executive team have also joined the board: Michael Crouch, Vicki Ray and Cherie Antoniazzi. GF says the decision to place them on the board "unequivocally...

CENTERLINE, MICH. - Northwood went live with its redesigned Web site last month, offering members access to contract-buying information and other news intended to make their work lives easier. "We're trying to keep people up to date with the health plans and (manufacturer) contracts we have now and for those we obtain in the future," said Penni LaBute, program director for Northwood Plus, the provider network's buying group. Through the site, member can now scan pricing, terms, delivery and other...

WASHINGTON - CMS has discontinued the HCPCS code for multiple-density inserts for diabetic shoes (A5502) and replaced it with three new codes. Industry sources say the impact of the change won't be clear until CMS establishes allowables. CMS defines the new codes by how they're formed: with external heat source (A5509), without external heat source (A5510), from model of patient's foot (A5511). Already, in its December 2001 bulletin, the Region B DMERC states that A5510 doesn't meet Medicare guidelines...

YARMOUTH, Maine - Apria Healthcare and Lincare's stocks have gathered kudos from investment professionals over the past year. With Lincare as one of its favorite holdings, the Wasatch Core Growth Fund appreciated 24% in 2001, despite holding lots of growth stocks in what was a value-stock environment. Core Growth has returned an average of 26% annually over the past three years by focusing on companies like Lincare that produce steady 15% to 25% earnings growth and whose stocks still seem modestly...