In brief: CareCentrix spin off, bid comment period, Rhythm expansion  

HARTFORD, Conn. – CareCentrix is now a private standalone company following its acquisition by Sycamore Partners, a New York-based private equity firm. 

The announcement coincides with Sycamore’s acquisition of Walgreens Boots Alliance, CareCentrix’s previous owner. The separation returns CareCentrix to its ownership structure prior to WBA’s acquisition of the company in 2022. 

“This is an exciting moment for CareCentrix and our team,” said Steve Horowitz, who will continue to lead CareCentrix as CEO. “Together with Sycamore, we remain committed to advancing our mission to deliver high quality whole-person care, drive better outcomes, and create a world where anyone can heal, age, and thrive at home.” 

The Pessinas, the family behind the mission 

Sycamore is acquiring the business in partnership with Stefano Pessina and his family, who have reinvested 100% of their interests in CareCentrix. The Pessinas say their investment demonstrates their ongoing support and confidence in the company’s future. 

“Our family has deep appreciation for CareCentrix and the impact they have on patients,” said Stefano Pessina. “We are proud to support CareCentrix in its mission to empower health at home by delivering coordinated, timely, and compassionate care.” 

About Sycamore Partners 

The firm, which specializes in consumer, distribution and retail-related investments, partners with management teams to improve the operating profitability and strategic value of their business. With approximately $11 billion in aggregate committed capital raised since its inception in 2011, its investors include leading endowments, financial institutions, family offices, pension plans and sovereign wealth funds. 

• Related: It’s still “early innings” in its partnership with Walgreens Boots Alliance, but CareCentrix remains focused on building out centers of excellence across both basic services and complex disease management, says Steve Wogen, chief growth officer. 
• Related: Walgreens’ investment in CareCentrix will accelerate the ongoing shift of health care to the home, says CareCentrix CEO John Driscoll.   

Next round of competitive bidding: Comment period closes      

YARMOUTH, Maine – VGM Group, the Council for Quality Respiratory Care and Cardinal Health at-Home Solutions have all shared the comments they submitted in response to CMS’s plans to resurrect the national competitive bidding program. The deadline for submitting comments was Friday, Aug. 29. 

Key recommendations in VGM’s comments include: 

• Opposing the proposed Remote Item Delivery Competitive Bid Program.  
• Urging CMS to exclude ostomy, urological and tracheostomy supplies from the bidding program.  
• Advocating against the inclusion of liquid oxygen, diabetes products, and OTS upper-extremity braces in the program. 
• Retaining the bid ceiling at the unadjusted 2015 fee schedule.  
• Preserving the current methodology for calculating the single payment amount (SPA) using the clearing price. 
• Opposing the proposed shift to determine SPAs for lead items based on the 75th percentile of winning bids. 

Key points made by Cardinal Health at-Home Solutions: 

• At-Home Solutions opposes the proposal to reclassify all CGMs and insulin infusion pumps under the FSS payment category and the proposal that CMS pay for all CGMs and insulin infusion pumps on a monthly rental basis under both the DMEPOS CBP and in non-competitive bidding areas through the fee schedule payments. 
• The proposed changes to regulations at subpart C of 42 C.F.R 414 are not necessary for the effective implementation of the DMEPOS CBP mandated by section 1847(a) of the Social Security Act. 
• CMS is soliciting comments on a proposal that would evaluate the fee schedule for CGM products and insulin infusion pumps not based on its inherent reasonableness authority, under 42 CFR 405.502, but based on payment information determined under the CBP for the rental of the equipment using the methodology established in regulations at 42 CFR 414.21(g). 
• CMS’s proposal to expand the circumstances in which the agency may revoke or deactivate a supplier’s billing privileges and apply retroactive revocation poses significant penalties on suppliers without reasonable notification or due process and are not necessary to prevent fraud and abuse. 
• CMS is correctly proposing to exempt a DMEPOS supplier’s parent company that is undergoing an internal corporate restructuring from additional enrollment and survey requirements, but CMS should expand its proposal to clarify that “parent” under this rule would include any entity that is a direct or indirect owner of the DMEPOS supplier. 

Key recommendations in the CQRC’s comments include: 

• Given concerns with the untested proposed 75th percentile methodology and changes to financial documentation requirements for the Medicare CBP, the CQRC would like to work with the Trump Administration to ensure that future CBP rounds address problems with the Round 2021 lead-item methodology and protect patient access to prescribed DMEPOS equipment, supplies and services. 
• The 75th percentile methodology does not reflect market-based pricing, jeopardizes patient access to physician-prescribed devices, and makes it easier for fraudulent entities, especially foreign actors, to conduct DMEPOS scams. We offer to work with CMS to consider and test other policy options in a smaller pilot program before implementing a new CBP round. 
• If CMS were to move forward with a new round of CBP in the near future, CMS should remove supplemental oxygen from future rounds to lock in savings already achieved and support legislative reforms to restore access to liquid oxygen and respiratory therapy services. 
• CQRC supports reducing fraud and abuse and urges CMS to adopt more effective policies than the proposed annual accreditation surveys. 

AAHomecare also submitted and shared its comments. 

VGM builds Professional Services team with three new consultants 

WATERLOO, Iowa – VGM & Associates has expanded its VGM Professional Services team with three consultants: Steve Baker, Brian Bersano and Tonya Williams. 

Empowering VGM members 

The company says that each consultant brings decades of experience and specialized expertise that will further its ability to deliver strategic, operational and compliance support to its members. 

“We are proud to welcome Brian, Tonya and Steve to VGM,” said Jamie Downing, SVP of education and professional services. “Their combined experience and strategic insight will empower our members to navigate challenges, optimize operations and unlock new growth opportunities.” 

Getting to know the three consultants 

• Baker is president of Healthcare Efficiency Associates (HCEA). With a career that includes leadership roles at Lincare, Respiratory Health Services and multiple DME startups, he has a proven track record of success with both large and small health systems across the country. His services include interim leadership, EMR selection, accreditation prep, insurance contract negotiations and performance turnaround. 
• Bersano brings more than 30 years of experience in health care, with a career that spans physical therapy, DME ownership and executive leadership. Most recently, he led a nationwide $85 million capitated payer contract for DME across 32 states. His expertise includes regional operations, custom mobility, payer contracting and post-acquisition integration.  
• Williams boasts three decades of experience in the DME sector. She previously worked as the national hospice director for a national provider, overseeing more than 250 branches under the COO’s leadership. Her expertise encompasses revenue cycle management and optimization, and process improvements and best practices. 

Joining the rest of the team 

The consultants join a team of seasoned experts that includes Ronda Buhrmester, senior director of payer relations, VGM & Associates; Wayne van Halem, president, The van Halem Group; Kelly Grahovac, general manager, The van Halem Group; and Sara Lewis, director of transportation, VGM Fulfillment. 

OIG report urges monitoring of remote patient monitoring 

WASHINGTON – The use of remote patient monitoring continued to grow in 2024, with Medicare payments exceeding $500 million, according to a new report from the HHS Office of Inspector General. 

Other key takeaways from the report: 

• Monitoring billing can help safeguard the Medicare program and prevent fraud, waste and abuse. 
• Billing that may warrant further scrutiny includes billing for a high proportion of enrollees who have no prior history with the medical practice and billing for multiple monitoring devices a month for an enrollee. 
• Analyzing billing can help CMS, Medicare Advantage organizations and other entities ensure enrollees receive the benefit of RPM while minimizing program integrity risks. 

The OIG put together the report because it previously found that the use of RPM in Medicare has the potential to greatly expand in the future and that additional oversight of RPM is needed. 

Nearly 1 million Medicare enrollees received RPM in 2024, according to the agency. 

Rhythm Healthcare launches in Europe, Canada 

NEW YORK – Rhythm Healthcare has launched Rhythm Healthcare France, a new subsidiary that will lead operations across Europe, the Middle East and Africa (EMEA). Flavien Dubiel, managing director, will guide strategy, strengthen provider partnerships and drive market growth in the area. “We’re not just entering new markets; we’re building trust in new communities,” he said. “Our goal is to bring Rhythm’s proven solutions closer to the providers who need them and do it in a way that reflects local needs and global standards.” As part of a global expansion, Rhythm has also partnered exclusively with KEGO Corp., a distributor based in London, Ontario, with deep roots in the HME industry. Through this partnership, Rhythm will open access to its P2-E Portable Oxygen Concentrators to providers in Canada. The company plans to expand its offering to providers in Canada beyond the P2-E. 

• Related: VGM & Associates signs Rhythm Healthcare.