In brief: CMS alert, home infusion bill, Quipt earnings

WASHINGTON – Industry stakeholders are pushing back on a CMS alert that, they say, makes it seem like patients can get CPAP devices and ventilators affected by a recent Philips recall replaced or repaired right away. 

The alert states: “If you would like to replace or repair your equipment, the supplier you bought the equipment from is responsible for replacing or repairing rental equipment at no cost to you when the equipment is less than five years old. If the equipment is more than five years old, Medicare will help pay for a replacement.” 

Stakeholders point out that Philips is still waiting for approval from the U.S. Food and Drug Administration for replacement material and major disruptions in the supply chain are making CPAP devices and vents hard to come by. 

“While the statement released by CMS is accurate in that most of the patients impacted by the recall should expect to have their existing device repaired or replaced, it fails to mention that the process and timeline associated with repairing or replacing those devices could take several months,” VGM Government Relations stated in a blog reacting to the alert. “We believe that should be clarified by CMS, as the current wording of the message they released will no doubt create unrealistic expectations for Medicare beneficiaries.” 

Stakeholders say the alert is causing further disruption for providers who are hearing from patients that are taking the alert as an indication that replacements or repairs are readily available. 

“We’re disappointed that CMS has chosen to raise the expectations of Medicare beneficiaries that a quick solution is at hand without providing any context on the constraints on product availability or approved repair protocols,” said Tom Ryan, AAHomecare president and CEO. “Respiratory suppliers understand that they will be on the front lines in addressing this problem for millions of Americans who depend on these products. We urge CMS and the FDA to collaborate with all major stakeholders in this undertaking to ensure an effective and workable approach to repair or replace this critically needed equipment.” 

VGM is preparing a letter to CMS requesting the agency issue a revised statement with additional clarification. 

Home infusion stakeholders now have bills in House, Senate 

WASHINGTON – A bill has been introduced in the House of Representatives to improve access to home infusion therapy for Medicare beneficiaries. 

Introduced by Reps. Terri Sewell, D-Ala., Debbie Dingell, D-Mich., Fred Upton, R-Mich., and Vern Buchannan, R-Fla., H.R. 5067, the Preserving Patient Access to Home Infusion Act provides technical clarifications that would remove the physical presence requirement, ensuring payment regardless of whether a health care professional is present in the patient’s home. 

“The COVID-19 pandemic has reinforced the need to treat our most vulnerable patients at home,” said Tim Affeldt, PharmD, vice president of Fairview Pharmacy Services and chair of the National Home Infusion Association’s board of directors. “This legislation will ensure that Medicare’s home infusion benefit is accessible to all patients, including individuals who have transportation or ambulatory challenges and those who live in rural or underserved communities.” 

The bill would also acknowledge the full scope of professional services provided in home infusion – including essential pharmacist services – into the reimbursement structure. 

A similar bill was recently introduced in the Senate. 

Quipt adds $5.5M in revenues 

CINCINNATI – Quipt Home Medical recently acquired a company with operations in Missouri for about $2.25 million in cash, adding three locations, 15,000 active patients, and 1,500 unique referring physicians. 

The acquired company reported unaudited trailing 12-month annual revenues of about $5.5 million and an expected adjusted EBITDA of $1.1 million. 

“We continue to focus on strategic acquisitions that help to build our footprint across the United States,” said Greg Crawford, Chairman and CEO of Quipt. “The addition of 15,000 patients and 1,500 referring physicians significantly strengthens our overall interconnected healthcare network and the fast-paced expansion in Missouri will serve as a foundation for other new states, where we can grow through economical bolt-on acquisitions that provide us important insurance contracts. As we look at the last 90 days, not only have we accomplished a major milestone of listing on NASDAQ, but we have also completed four acquisitions with combined revenue of over $11 million, expanding us into four new states.” 

Quipt began trading on the NASDAQ in May under the symbol QIPT. 

Including the recent acquisition, the company says it now has 145,000 active patients, 18,500 referring physicians and 60 locations across 15 states in the U.S. 

“As we continue to work through our acquisition pipeline, we are enthused to have the opportunity to penetrate existing and new states building scale both organically and through strategic bolt-on opportunities,” said Hardik Mehta, CFO. “While we accelerate our pace on acquisitions, I want to reiterate that we will continue our disciplined approach that has been very successful in growing shareholder value.” 

Quipt has opportunity to ‘scale aggressively,’ it says 

CINCINNATI – Quipt Home Medical has reported revenue of $26.2 million for the third quarter of 2021 compared to $18.6 million for the same period last year, a 41% increase. 

The company reported net income of $6.3 million compared to a net loss of $2.5 million. 

“We continue to produce exceptional results, highlighted by our robust organic growth, driven by the strong execution displayed across the organization, comprised of over 600 dedicated team members,” said Greg Crawford, CEO and chairman. “Our record third quarter financial and operation results are a direct result of our ability to leverage ongoing technology implementation and workflow processes to improve our operations. Strength in the underlying business, combined with secular tailwinds and a bullish regulatory landscape, provide us extraordinary opportunity to scale aggressively.” 

Other highlights from Quipt’s financial results: organic growth of 7% in the third quarter this year compared to the same period last year; adjusted EBITDA of $5.3 million vs. $4.4 million; a customer base of 64,578 unique patients served vs. 37,128; unique setups/deliveries of 95,192 vs. 57,551; and respiratory resupply setups and/or deliveries of 40,580 vs. 14,436. 

Quipt also highlighted its acquisition of three separate entities with combined operations in California, Missouri, Arkansas and Mississippi, unaudited trailing 12-month annual revenues of about $5.5 million and adjusted EBITDA of $550,000 prior to integration. 

The company also announced that it has added David Chester to lead its M&A and integration team. Chester has 21 years of experience, most recently as director of acquisitions for one of the largest HME companies in the industry. 

NRRTS updates board 

LUBBOCK, Texas – NRRTS has refreshed its board of directors to include members from Canada. The current roster now comprises: 

• Gerry Dickerson, ATP, CRTS, president 
• Carey Britton, ATP/SMS, CRTS, president elect 
• Tom Simon, ATP, CRTS, vice president 
• Jason Kelln, ATP, CRTS, secretary 
• Andrea Madsen, ATP, CRTS, treasurer 
• Chris Savoie, ATP/SMS, CRTS, at-large director 
• Dave Nix, ATP, CRTS, at-large director 
• Stephanie Laurance, RRTS, at-large director 
• Tim Robinson, ATP/SMS, CRTS, at-large director 
• Bernie Opp, RRTS, regional review chair, Canada 
• Darrell Mullen, RRTS, regional review chair, Canada 
• Michelle Harvey, RRTS, regional review chair, Canada 
• Brian Coltman, ATP/SMS, CRTS, regional review chair, U.S. 
• Doug Crana, ATP, CRTS, regional review chair, U.S. 
• Mike Harris, ATP, CRTS, regional review chair, U.S. 
• Mike Seidel, ATP, CRTS, regional review chair, U.S. 

“It has been a tough year for all of us and we’re happy and grateful to have this dedicated group of folks on our board, providing guidance,” said Dickerson. “The addition of Canadian board members is especially noteworthy for the diversity and growth they bring to our organization.” 

NRRTS board members serve for two years. 

NMEDA, United Spinal drive awareness 

TAMPA, Fla. – The National Mobility Equipment Dealers Association and the United Spinal Association will kick off their Automotive Mobility Awareness Tour on Aug. 26 at the Moss Rehabilitation Center in Elkins Park, Pa. At the event, the two associations will highlight accessibility solutions and showcase how hospital administrators, case managers, physical and occupational therapists, automotive mobility dealers and manufacturers are all working together to improve the lives of their clients. “By sharing the latest innovation in wheelchair accessible vehicles and equipment with centers like Moss, we are truly able to assist more people who need the specialized vehicles and adaptive equipment that our automotive mobility dealer members across North America provide,” said Danny Langfield, CEO,NMEDA. “After missing more than a year of connecting in person with our front-line healthcare workers, we are really looking forward to starting this tour again.” Other stops on the tour include Phoenix; Los Angeles; Fort Worth, Texas; and Washington, D.C. United Spinal will specifically be showcasing its efforts to assist the 17,730 Americans who experience spinal cord trauma each year. “Our organization specializes in improving the lives of individuals after a spinal cord injury,” said Vincenzo Piscopo, president and CEO. “We’re looking forward to connecting with organizations like NMEDA and the local facilities to partner with us in bringing this information to the public.” 

NSM grows in Virginia 

NASHVILLE, Tenn. – National Seating & Mobility has broadened its reach in Virginia with the acquisition of Trust Care Home Medical Equipment’s locations in Richmond and Roanoke. The acquisition positions NSM as the largest provider of complex rehab technology and services in the state, the company says. “Expanding our footprint allows us to serve more individuals in need of mobility and home accessibility services,” said Bill Mixon, CEO of NSM. Trust Care Home Medical Equipment was founded in 2006 by Mark Armstrong, who is retiring. Six assistive technology professionals (ATPs) will transition to NSM as part of the acquisition. NSM has completed eight acquisitions so far in 2021.  

Hanger honors future O&P professionals 

AUSTIN, Texas – The Hanger Foundation has announced the 2021 recipients of the inaugural Hanger Foundation Diversity Scholarships. It has awarded six graduate students from three universities two-year scholarships to help supplement the cost of their Masters of Science in Prosthetics and Orthotics. It’s also offering a two-year mentorship, with the option of pursuing a residency at the Hanger Clinic. The recipients are: Taushima “Shima” Nixon at Alabama State University, Kayla Tillman at Alabama State University, Felicia Farrar at Northwestern University, Althea Fordyce at Northwester University, Juan Argueta at University of Hartford, and Isabella “Noelle” Medina at University of Hartford. Each recipient was selected by their respective university for displaying remarkable academic achievement, community service and a passion for diversity within the O&P profession. 

Cailor Fleming, VGM Specialty Underwriters team up 

YOUNGSTOWN, Ohio – Cailor Fleming Insurance and VGM Specialty Underwriters have formed an exclusive partnership to meet the needs of members of the American Orthotic and Prosthetic Association, and the O&P and pedorthic professions. “Creating this partnership allows us to serve O&P providers in an even greater capacity,” said Don Foley, owner/operator, Cailor Fleming Insurance. “We’ve developed tailored products and coverage options for the unique needs of O&P businesses to help them thrive now and into the future.” Cailor Fleming Insurance, which has been involved in O&P for more than 30 years, has been an AOPA-endorsed insurance program since 2009. VGM Specialty Underwriters has provided specialized insurance solutions, including specialized risk management services and custom coverages, to the O&P profession for more than 30 years. 

VGM Fulfillment to open fourth warehouse 

WATERLOO, Iowa – VGM Fulfillment, a division of VGM & Associates, will open an 180,000-square-foot warehouse in Shiremanstown, Pa., on Sept. 7 that will employ 40 people when it reaches full capacity. The company is opening the new location to expand its services to customers in the heavily populated northeastern corridor. “We are thrilled to be opening this new location in Pennsylvania to further our reach and support of our customers in this strategic location,” said Jeremy Stolz, president of VGM Fulfillment. “The addition of this fourth warehouse will provide shorter transit times and more capacity and is a testament to our commitment and a sign of (our) growth and success.” VGM Fulfillment already has three warehouses in Waterloo, Iowa; Nashville, Tenn.; and Phoenix, Az. VGM Fulfillment provides customer service, systems, sales and support services for all warehouses its headquarters in Waterloo. 

F&P names new board member 

AUCKLAND, New Zealand – Fisher & Paykel Healthcare has appointed Lisa McIntyre, PhD, as a non-executive director of the company effective Oct. 1, 2021. “Lisa has extensive knowledge in health and technology – with experience in strategy, finance, technology transformation and data analytics,” said Scott St John, chairman of the board. “She has a deep understanding of international markets and a reputation for insight, integrity and transparency.” McIntyre is an experienced company director with a broad portfolio that spans the health care, insurance, technology and e-learning sectors. She is currently a non-executive director of Insurance and Care NSW (a government public financial corporation), HCF Group (a private health insurance company in Australia), the University of Sydney, and Studiosity and Nanosonics. She also chairs LEK Consulting’s ANZ Advisory Board. 

Lifeway Mobility expands in Illinois, Indiana 

SPRINGFIELD, Ill. – Lifeway Mobility has expanded its coverage area in Illinois and Indiana. The company now provides stair lifts, ramps and other accessibility solutions to those living in central Illinois and west-central Indiana, including the cities of Springfield, Champaign and Bloomington. “Lifeway’s expansion in the states of Illinois and Indiana accelerates the company’s growth as one of the region’s top providers of accessibility solutions,” said Doug Sokulski, Midwest general manager. “We look forward to welcoming even more satisfied customers from both Illinois and Indiana.” Initially, Lifeway Springfield will be supported by nearby locations in Indianapolis and Chicago, which have more than 30 years of experiences in the accessibility industry. The company recently received an investment from Cressey & Company.  

United Spinal welcomes new board members 

KEW GARDENS, N.Y. – United Spinal Association has appointed four new members to its board of directors. They are Javier Robles, adjunct professor at Rutgers University; Dr. David Mann, senior researcher at Mathematica; Christopher Pangilinan, head of global policy, public transportation, at Uber; and Keaston White, attorney-advisor, Office of the Solicitor, at the U.S. Department of Interior. “We are excited to welcome four new board members this year, as we celebrate United Spinal’s 75th Anniversary, who exemplify our commitment to building an inclusive world and strengthening the voices of the underrepresented members of the disability community,” said Vincenzo Piscopo, president and CEO of United Spinal Association. “It is vital that our board of directors represents the diverse population we support so that we can offer the best service possible.” All of the new members will serve three-year terms. United Spinal’s board manages, supervises and controls the business, property and affairs of the organization. Go here for a full list of board members.