Archive: June 2007

WASHINGTON - Competitive bidding, as spelled out in pronouncements by CMS to date, is as intimidating as HME suppliers thought it would be. Some see a silver lining in an otherwise thunderous cloud, but by and large, providers expect meager (if any) profits, bankruptcies and a bureaucratic nightmare. In a recent HME NewsPoll, half of 137 suppliers who responded to the poll say they've started to crunch the numbers that will enable a bid; the other half have not. About two-thirds of all providers...

A rehab provider's increasingly diverse product mix prompted it to spread out into a new 18,000-square-foot corporate headquarters in May. Irvine, Calif.-based Source One Medical still relies on power mobility devices for up to 50% of its business, but due to national competitive bidding and other reimbursement challenges, it has expanded into other products, including respiratory (See HME News, January 2007). The new headquarters centralizes operations for all products. "We were busting at the seams...

CHICAGO - KCI may be Goliath in the market for negative pressure wound therapy, but that doesn't scare Medela officials. In April, a judge affirmed a jury's verdict that Medela did not infringe on KCI's patent. Medela, best known in the United States for its breast-feeding products, then launched the Invia Healing System, a negative pressure wound therapy product intended to go head-to-head with KCI. In May, KCI appealed the judge's decision, but Medela has no plans to back off. "KCI is obviously...

BUFFALO GROVE, Ill. - First quarter 2007 revenues climbed 37% for infusion provider OptionCare, the company reported May 8. Revenue hit $213 million compared to $155 million during the same period in 2006. Net income increased 41% to $6.8 million, compared to $4.8 million during the same period last year. Also, effective during the first quarter, OptionCare has divided the reporting of specialty pharmacy services in specialty infusion and specialty distribution pharmacy services.

HAMPTON, Va. - Pivoting off the success of its delivery business, Hymark-Cylinders has devised a new exchange program that switches out used cylinders for new ones, bypassing the refurbishment process that has long been common in the oxygen market. Thus far, providers have given the program two thumbs up, say company officials. "It is routine for aluminum cylinders to be hydrostatically tested every five years to make sure they meet the standards before they can be refilled," said Jason Franklin,...

ROME, N.Y. - Nunn's Home Medical Equipment held a ribbon-cutting ceremony June 1 for its new 9,000-square-foot location. The mayor of Rome, a state assemblywoman and a state senator attended the ceremony. The new location includes a 2,500-square-foot interactive showroom. The provider spent 22 years in its previous location, which was torn down. Nunn's carries a full line of hospital and homecare products and equipment.

MIAMI - A Miami provider has orchestrated an effort to deflate national competitive bidding. At "emergency" meetings May 10 in Miami and May 23 in Orlando, Fla., City Medical Services urged providers to file complaints with the Small Business Administration, arguing the program fails to meet a Congressional mandate to protect small providers. Their hope: The SBA will intervene and stop or delay the program. "We're trying to get as many complaints filed with the ombudsman as possible," said Rob Brant,...

NEW BERLIN, Wis. - Realizing that it will be "a different world out there in the next few years," Home Care Medical recently expanded and remodeled its retail location to woo baby boomers who buy home medical equipment for their elderly parents. Home Care Medical made $300,000 worth of improvements to the Greenfield, Wis., location. The provider expanded its footprint from about 3,000 to 9,000 square feet, and created a welcome center and several room-like areas to highlight retail products. At an...

CHATSWORTH, Calif. - The FDA has granted 510(k) clearance to CHAD Therapeutics Bonsai OXYPneumatic conserver, which offers up to a 6:1 savings ratio, the company announced in May. The 9.9-ounce device has eight flow settings, an adjustable continuous-flow feature and uses a single-lumen cannula.

NEW YORK - Distribution giant Cardinal Health bolstered its respiratory and sleep offerings in mid-May when it acquired Viasys Healthcare for $1.45 billion. Viasys recorded $610 million in revenue last year. Cardinal began talks with the company in April and then learned that another company was also interested in Viasys. That forced Cardinal to accelerate its bid, according to a news report. Viasys' respiratory diagnostic systems diagnose and treat pulmonary diseases and sleep disorders; provide...