Archive: January 2003

Bowman relocatesto larger location SAN CARLOS, Calif. - Bowman Medical has relocated to a 4,500-square-foot location here from a 2,000-square-foot location in Hayward, Calif. The new location will give the company much needed “breathing room,” said owner Daryl Bowman. Now it can showcase more products, especially lift chairs and wound care products, he said. The company, which specializes in bread-and-butter HME like low-air-loss mattresses and hospital beds, can also look into adding...

MT. VERNON, N.Y. - Alan Landauer's got big plans, and now it looks like he's got the cash to carry them out. The owner of one of the largest independent HMEs in the New York City area, Landauer-Metropolitan, sold a piece of his company to Canadian investors in December for $7.63 million. Landauer intends to use the money to grow his $40 million company to $70 million to $100 million over the next two years. “I can't do it myself, or only very slowly,” Landauer said. “The banks...

WASHINGTON - If the momentum to privatize the Medicare program accelerates under the leadership of incoming Senate Majority Leader Bill Frist (R-Tenn.), HME providers see advantages and disadvantages to moving off the fee schedule and into the hands of private payers. The first, most obvious benefit, say many, is a reduction in the administrative burden. “I can take less money if you can reduce my work,” said Jim Clark, president of Clark Respiratory and Medical Supply in Catskill, N.Y....

GARDEN GROVE, Calif. - Frustrated by the instability of selling scooters direct to the end-user, a seven-year old scooter manufacturer is revamping its distribution model with the development of a dealer network. The company, No Boundaries, currently sells 80% of its products through direct sales and 20% through dealer channels. In a year, company President Norman Stein expects the retail portion to drop to 60% and in two years to 40% with dealers picking up the additional business. “It's...

CLEARWATER, Fla. - Six “top-notch” mutual funds have invested $74 million in Lincare over the last few months, including Fidelity's Low-Price Stock Fund, which bought 2.3 million shares, according to Investor's Business Daily. According to IBD: Lincare has been very profitable. It has notched healthy, double-digit earnings and sales growth in at least 10 quarters. Its after-tax margin was at 19.8% the past three quarters, the highest in at least 10 quarters. Analysts see 2002's net...

Calif. looks to ‘whack' supplies reimbursement SACRAMENTO, Calif. - In order to help close a gigantic budget deficit, Gov. Gray Davis has proposed cutting $2 billion in healthcare spending, including eliminating Medicaid reimbursement for medical supplies. “We're on the firing line, and it's not friendly fire,” said Bob Achermann, executive director of the California Association of Medical Products Suppliers. California Medicaid reimburses $250 million a year for medical supplies,...

LYNBROOK, N.Y. - Early last year Ed Walsh and Seth Lane bet that if they started a company that provided only adult and pediatric respiratory services, referral sources would welcome them with open arms. They never thought that those open arms would close into an affectionate bear hug. “When we started, our original goal was to break $500,000 for the year,” said Walsh, who like Lane has 25 years in the HME industry, but never as an owner. “Breaking even would be fine. We never...

ATLANTA - Although Coloplast is shutting down its breast form manufacturing plant in Marietta, Ga., and consolidating operations in an existing plant in Raubling, Germany, the only noticeable difference for its customers, says the company, will be the name on the box. “We'll still warehouse and distribute here,”said Coloplast Marketing Manager Sara Zywicki. “But instead of shifting product from down the street, we'll be getting it from Germany.” The consolidation doesn't...

Are you ready for an audit? With Jeanie Lane Q: With the DMERCs becoming increasingly aggressive in their auditing efforts, is there anything a company can do to avoid an audit? A. At the present time, I'm not sure there is a way to avoid audits. In fact, CMS has advised the DMERCs to increase audits in full force. There are some things you can do, however, that will help deflect attention from your company, whether it be from the DMERCs, OIG or FBI. It no longer is a matter of “Will I be...

NRRTS and its members mark 10-year anniversary LARGO VISTA, Texas - The National Registry of Rehabilitation Technology Suppliers (NRRTS) marks its 10-year anniversary this year, and the organization and its members are finally “coming into their own,” says President Dave Kruse. “After years and years, we're starting to get recognized as professionals,” he said. Much of that has to do with a decision by the Georgia Medicaid program to require that providers fitting custom...