In brief: AdaptHealth ‘stays the course,’ Philips sees ‘encouraging start,’ DOJ sues insurers 

CONSHOHOCKEN, Pa. – AdaptHealth reported revenue of $777.9 million for the first quarter of 2025, a decrease of 1.8% compared to the same period last year. 

Net loss attributable to AdaptHealth Corp. was $7.2 million compared to net loss of $2.1 million and adjusted EBITDA was $127.9 million compared to $158.5 million. 

“Amid elevated uncertainty in the external environment, we at AdaptHealth have stayed the course, with a relentless focus on improving our business and providing exceptional service to the 4.2 million patients that depend on us,” said Suzanne Foster, CEO. “Reflecting that focus, we delivered another quarter of solid results, we continued to make progress on our financial position with additional debt reduction, and for a second consecutive quarter, our Diabetes Health segment continued to show signs of improvement. I am excited by the tremendous opportunity ahead, as we continue to leverage our geographic reach, operational scale and patient service excellence to capture market share and drive consistent and sustainable organic growth in each of our four segments.” 

During the quarter, AdaptHealth closed on its previously disclosed agreement to sell certain incontinence assets in its Wellness at Home segment to a third party, and also signed a definitive agreement to sell certain infusion assets in its Wellness at Home segment to a third party, which is expected to close in the second quarter of 2025. 

AdaptHealth is updating previous financial guidance for fiscal year 2025 to account for the disposition of certain incontinence assets, as follows: 

• Net revenue of $3.18 billion to $3.32 billion, from $3.22 billion to $3.36 billion. 
• Adjusted EBITDA of $665 million to $705 million, from $670 million to $710 million. 
• Free cash flow of $180 million to $220 million, unchanged. 

Philips sees ‘encouraging start’ to year 

AMSTERDAM – Philips has reported group sales of EUR 4.1 billion for the first quarter of 2025, a 2% decline, mainly due to China. 

The company reported comparable order intake increased 2%, primarily driven by strong performance in North America, offsetting a decline in China, and income from operations increased to EUR 154 million. Adjusted EBITDA margin declined to 80 bps to 8.6% of sales. 

“We remain dedicated to serving our customers, driving profitable growth and delivering better care for more people,” said Roy Jakobs, CEO of Royal Philips. “Our order intake growth continued with strong momentum particularly in the U.S., coupled with positive growth in personal health, providing an encouraging start to the year.” 

For Connected Care, which includes the Sleep & Respiratory Care business, comparable sales were broadly flat across businesses and adjusted EBITDA margin was 3.5%, mainly due to an unfavorable mix and cost phasing, partly offset by productivity measures and innovation. 

Philips updated its outlook for full year 2025 to reflect an uncertain macro environment, including the U.S.-China and rest of world tariffs. It now expects: 

• Comparable sales growth to remain unchanged at 1%-3%. 
• Adjusted EBITA margin range to be 10.8%-11.3%, including an estimated net tariff impact of EUR 250-300 million after substantial tariff mitigations, a 100 bps reduction versus previous outlook, based on the above-referenced assumptions. 
• Free cash flow to be slightly positive for the full year, after the payout of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the U.S. 

“In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control,” Jakobs said. “We are improving our supply chain agility, taking decisive cost actions to mitigate financial impact where possible, and ensuring we can continue to serve our customers and consumers.” 

Philips' outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the U.S. Department of Justice. 

• Related: Philips now has clarity to ‘rebuild.’ 

Senators seek to fast-track payments for AI-enabled medical devices 

WASHINGTON – U.S. Sens. Mike Rounds, R-S.D., and Martin Heinrich, D-N.M., have introduced legislation aimed at improving health outcomes for Medicare patients by encouraging the use of cutting-edge, artificial intelligence-enabled medical devices. 

The Health Tech Investment Act would establish a consistent and predictable Medicare payment pathway for these technologies, providing patients with earlier and more accurate diagnoses, the senators say. 

“Medicare patients deserve access to the life-changing care that artificial intelligence-enabled devices can offer,” said Rounds. “There is currently no clear Medicare payment system for these devices, meaning that it can take years to be approved and paid out by Medicare accurately. This legislation would create that system, improving diagnoses and encouraging the adoption of AI devices in clinical settings.” 

Rounds and Heinrich are co-chairs of the Senate Artificial Intelligence Caucus. 

The Health Tech Investment Act would assign all U.S. Food and Drug Administration approved AI-enabled medical devices to a New Technology Ambulatory Payment Classification (APC) in the Hospital Outpatient Prospective Payment System (OPPS) for a minimum of five years so that adequate data regarding delivery and service costs is acquired before assignment of a permanent payment code. 

Specifically, the act would: 

• Develop a formalized payment pathway for ABHS FDA-cleared medical devices. 
• Provide patients with access to innovative, AI-enabled clinical technology. 
• Provide manufacturers and providers with the certainty they need to invest in developing next-generation health care technologies and bringing them to market. 
• Improve patient outcomes, providing resources for providers to meet ABHS standards of care. 

The legislation is endorsed by AdvaMed, Alliance for Aging Research, Brem Foundation to Defeat Breast Cancer, Focused Ultrasound Foundation, National Health Council, National Psoriasis Foundation, Patients Rising and Right Scan Right Time. 

Click here to read full bill text. 

DOJ sues insurers, brokers for patient steering toward MA plans 

WASHINGTON – The U.S. Department of Justice has filed a complaint against three of the nation’s largest health insurance companies for allegedly paying hundreds of millions of dollars in illegal kickbacks to broker organizations in exchange for enrollment in their Medicare Advantage plans. 

The complaint, filed under the whistleblower provisions of the False Claims Act, names Aetna and affiliates, Elevance Health (formerly known as Anthem) and Humana, as well as brokers eHealth and affiliate, GoHealth and SelectQuote. 

“Health care companies that attempt to profit from kickbacks will be held accountable,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We are committed to rooting out illegal practices by Medicare Advantage insurers and insurance brokers that undermine the interests of federal health care programs and the patients they serve.” 

The DOJ filed the complaint on May 1 in U.S. District Court in Massachusetts. 

According to the complaint: 

• The brokers allegedly directed Medicare beneficiaries to MA plans offered by insurers that paid brokers the most in kickbacks, regardless of the suitability of the MA plans for the beneficiaries. The brokers allegedly incentivized their employees and agents to sell plans based on the insurers’ kickbacks, set up teams of insurance agents who could sell only those plans, and at times refused to sell MA plans of insurers who did not pay sufficient kickbacks. 
• Aetna and Humana each allegedly conspired with the brokers to discriminate against Medicare beneficiaries with disabilities whom they perceived to be less profitable. They did so by allegedly threatening to withhold kickbacks to pressure brokers to enroll fewer disabled Medicare beneficiaries in their plans. In response to these financial incentives, the brokers allegedly rejected referrals of disabled beneficiaries and strategically directed disabled beneficiaries away from Aetna and Humana plans. 

“It is concerning, to say the least, that Medicare beneficiaries were allegedly steered towards plans that were not necessarily in their best interest – but rather in the best interest of the health insurance companies,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “The alleged efforts to drive beneficiaries away specifically because their disabilities might make them less profitable to health insurance companies are even more unconscionable. Profit and greed over beneficiary interest is something we will continue to investigate and prosecute aggressively. This office will continue to take decisive action to protect the rights of Medicare beneficiaries and vulnerable Americans.” 

The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Massachusetts are handling the matter, with assistance from the Department of Health and Human Services (HHS) Office of Inspector General and the FBI.  

EnsoData releases AI-driven RPM 

MADISON, Wis. – EnsoData has added a new remote physiological monitoring (RPM) offering to the EnsoSleep PPG ecosystem of AI tools. The RPM solution allows clinicians to seamlessly monitor patients over time and proactively intervene when patients need support with their therapy the most. “The natural evolution for sleep care is in remote physiological monitoring from the home,” said Sam Rush, co-founder and chief AI officer for the company. “Until now, sleep medicine lacked an RPM solution that combined comfortable, wireless devices and an easily accessible physician web portal. Turning AHI into a daily vital sign empowers clinicians to manage therapy proactively to improve patient outcomes.” Patients using EnsoData’s RPM solution are monitored at home using comfortable ring, watch, or patch-based devices. Using only a PPG-based device, EnsoSleep PPG Study Management and the Celeste+ mobile application, the solution provides uniform AHI monitoring across all treatment modalities, including CPAP, implantable devices, oral appliances, and GLP-1s, the company says. "EnsoData’s RPM solution uses the same device for monitoring therapy as for testing, making it very user friendly for both patients and our team,” said Dr. Ernesto Eusebio, Sleep & Apnea Institute of Florida. “Our patients already understand the devices and the app from testing, so there’s no learning curve. Plus, our sleep staff can more easily track therapy progress, spot issues early, and provide timely support, all while accessing new billing codes to generate additional revenue beyond the testing phase.” 

NCPA presses Congress on PBM reform during fly-in 

ALEXANDRIA, Va. – Hundreds of independent community pharmacy advocates from 39 states and the District of Columbia went to Capitol Hill April 30-May 1 as part of the National Community Pharmacists Association’s Congressional Pharmacy Fly-In. Attendees visited more than 280 congressional offices to discuss why Congress must act swiftly to finalize and pass pharmacy benefit manager reform legislation and push the CMS to correct course on Medicare Drug Price Negotiation Program implementation. “Egregious PBM practices have led to the closure of thousands of community pharmacies just over the past few years, creating pharmacy deserts and pharmacy abandonment throughout the country and greatly limiting patient access to care,” said Jeff Harrell, PharmD, the 2024-2025 NCPA president. “In my home state of Washington, we lost 83 pharmacies in the second half of 2023 alone. Patients and pharmacies cannot keep waiting for these commonsense reforms, which are supported by the vast majority of members of Congress across the political spectrum. Add to that these policies save taxpayers billions of dollars, and passage should be a no-brainer. We need them to put the politics aside and get this done ASAP.” Rep. Buddy Carter, R-Ga., kicked off the fly-in on April 30, giving attendees his insights into what’s happening with PBM reform and budget reconciliation and sharing how they could most effectively reach out to their policymakers for progress. Later that day and on May 1, after being briefed by NCPA staff and other health policy experts, attendees headed to the Capitol to make their voices heard. What they discussed:   

• With patient access to pharmacy care in jeopardy, community pharmacists urged Congress to act swiftly to finalize and pass PBM reform legislation that prohibits the use of spread pricing in Medicaid managed care programs and would move to a fair and transparent pharmacy reimbursement system; requires CMS to define and enforce “reasonable and relevant” Medicare Part D contract terms, including those related to reimbursements; and ensures adequate Medicare payment for pharmacist services. 
• They also urged members of the House of Representatives to sign onto a letter to Health and Human Services Secretary Robert F. Kennedy, Jr., and CMS Administrator Mehmet Oz, led by Carter and Rep. Jake Auchincloss, D-Mass., urging CMS to use its authority to ensure implementation of the Medicare Drug Price Negotiation Program does not rely on pharmacies to pre-fund the program. 

The next Congressional Pharmacy Fly-In is scheduled for April 15-16, 2026. 

• Related: NCPA urges DOGE to investigate PBMs. 

Mölnlycke Health Care gets behind wound dressing standards 

NORCROSS, Ga. – Mölnlycke Health Care is supporting the Wound Care Collaborative Community (WCCC) as it develops a standardized pre-clinical testing framework for wound dressings. The collaborative involves clinicians, materials management and procurement teams, regulators and industry experts, with the goal of enhancing patient care through clinically relevant and consistent evaluations. “During development, reliable, clinically relevant test methods are a prerequisite to achieve wound dressings with the right properties, which will meet true needs of clinicians and patients,” said Erik Nygren, PhD, senior scientist at Mölnlycke Health Care. “By sharing knowledge and capabilities within the WCCC Gaps Work Group, we can accelerate progress and foster a unified community that benefits all stakeholders.” In a recent publication in the Wounds journal, the WCCC calls for a new era of wound dressing standards rooted in clinical relevance, biological validity and consistency across product development and evaluation. A clear, testing framework that is shared by all stakeholders: 

• Helps clinicians make better-informed decisions based on consistent, evidence-based product evaluations, recognized by various stakeholders. 
• Progresses industry design and drives refinement of products with real-world performance in mind. 
• Helps researchers and regulators agree on functional dressing properties that align with clinical needs and ensure that pre-clinical testing appropriately reflects these needs. 

The WCCC urges the wound care community to get involved, as they need feedback from a wide range of stakeholders. Stakeholders can help by taking a survey here: https://bit.ly/4cN7sIZ. 

Read more about the WCCC’s initiative to improve wound care standards here: https://www.hmpgloballearningnetwork.com/site/wounds/enhancing-patient-care-through-advanced-wound-dressing-standards-wound-care.  

Henry Schein advances BOLD plan 

MELVILLE, N.Y. - Henry Schein has reported total net sales of $3.2 billion for the first quarter 2025, with constant currency total net sales increasing 1.4% compared with the same period last year, and as-reported total net sales decreasing 0.1% due to a stronger U.S. dollar. Global Distribution and Value-Added Services sales increased 0.8% in constant currencies. Of that, Global Medical Distribution sales increased 3%, reflecting increased patient traffic to physician offices, strong growth in home solutions business and growth from acquisitions. “We are advancing our BOLD+1 Strategic Plan, which has been refreshed for 2025 to 2027, with our team focused on growing the distribution business through increasing operational efficiency and enhancing customer experience, growing our dental and medical specialty businesses and corporate brand products, and further developing our digital footprint and digital solutions,” said Stanley M. Bergman, chairman of the board and CEO. “We remain committed to our long-term financial goal of high-single-digit to low-double-digit earnings growth by continuing to successfully execute against this strategy.” Henry Schein reported GAAP net income of $110 million for the first quarter 2025 vs. $93 million and non-GAAP net income of $143 million, the same as last year. It reported adjusted EBITDA of $259 million vs. $255 million. The company maintained its financial guidance for 2025, including a 2% to 4% increase in total sales growth over 2024 and a mid-single digit increase in adjusted EBITDA growth. 

Mobility Indy gains independence  

INDIANAPOLIS – Mobility Plus Indianapolis West, a provider of stair lifts, scooters and lift chairs serving central Indiana, is rebranding as Mobility Indy. As part of the rebrand, the company is exiting the Mobility Plus franchise and becoming an independent company under Team W Mobility LLC. “We're the same people, at the same place, with the same phone number, and the same mission," said Stoddard Worman, owner of Mobility Indy. "This rebrand gives us the freedom to improve every part of the experience for our customers-from product selection to service transparency." Its new independence will allow Mobility Indy to have direct relationships with manufacturers like Golden Technologies, Harmar, Pride Mobility, EZ-Access and others. It will also allow the company to invest in improved digital tools, faster product fulfillment and expanded local partnerships. "Mobility Indy is who we've always been at our core," said Worman. "We're proud to now have a name that reflects our home, our independence, and our future." 

Pride’s Meuser honored as Titan 

PITTSTON, Pa. - The Greater Pittston Chamber of Commerce has selected Scott Meuser, chairman and CEO of Pride Mobility Products, as 2025 Titan of Industry. He will be honored at the Second Annual Titan of Industry Award Celebration on May 8. “I’m honored,” Meuser told the Times Leader. “When they called and told me they wanted to give me this award, I was just very honored that an organization that had been supportive of me when I was starting out wanted to recognize that my career journey has been successful.” Pride Mobility was formed in 1986 when the Meuser and the Kretchik families began manufacturing lift chairs on Main Street in Pittston. The company, which is now based in Duryea, went on to develop the Jazzy Power Chair in 1996, found Quantum Rehab in 2000, acquire Stealth Products in 2014 and launch iLevel technology in 2015, among other milestones. Meuser became president of the company in 1988 and at 62 has no plan to retire, the told the Times Leader. “I have no plans to move on, and I have an unbelievable team and in all the years I’ve run Pride, I’ve never had as strong a team as we do now,” Meuser told the newspaper. “They make me look good and I get to focus on big picture issues, the strategy, and trying to look around corners to see what’s going to happen next and this world. I got good balance in my life. I think I got good health and hopefully I got another 10-years in me.” Read the Times Leader’s full profile of Meuser here. 

Cardinal Health sees ‘broad-based performance’ 

DUBLIN, Ohio – Cardinal Health has reported revenues of $54.9 billion for the third quarter fiscal year 2025, flat to the same period last year. The company reported GAAP operating earnings of $730 million and non-GAAP operating earnings of $807 million, a 21% increase, driven by across-the-board segment profit growth. "Our strong momentum continued into our third quarter as our team's ongoing focus on operational execution and value creation led to excellent financial results," said Jason Hollar, CEO of Cardinal Health. "I am delighted to see the broad-based performance, with all five of our operating segments contributing to our strong growth. We are pleased to raise our fiscal 2025 guidance demonstrating the strength and resilience of Cardinal Health." The company’s Other segment, which comprises at-Home Solutions, Nuclear and Precision Health Solutions, and OptiFreight Logistics, reported revenue of $1.3 billion, a 13% increase, and a profit of $134 million, a 22% increase. Cardinal has increased its outlook for Other segment profit to 16% to 18% growth from about 10% growth, driven by stronger organic performance and the completed acquisition of Advanced Diabetes Supply Group. 

• Related: Cardinal Health finalizes ADSG acquisition.