Home Article In brief: Final rule delay, Medline IPO, HME Appreciation Week, Philips earnings 

In brief: Final rule delay, Medline IPO, HME Appreciation Week, Philips earnings 

In brief: Final rule delay, Medline IPO, HME Appreciation Week, Philips earnings 

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By HME News Staff

Updated 9:15 AM CST, Wed November 5, 2025

WASHINGTON – A final rule with further details about CMS’s next round of the competitive bidding program (CBP) was not released last week, giving industry stakeholders more time to continue advocacy efforts, AAHomecare says. 

The 2026 DMEPOS/Home Health Final Rule final rule was expected to be released on Oct. 31. 

“Whether that delay is tied to the HME community’s all-out advocacy efforts on CBP provisions in the rule is not clear – and a timeline for releasing the final rule is also not apparent,” the association stated. “What is clear is that all stakeholders have an extended opportunity to reach out to Capitol Hill and ask them to weight with CMS and the administration on the CBP.” 

AAHomecare is asking stakeholders to reach out to health care staffers for their representatives and senators with this basic message: 

“I am asking your office to reach out to your contacts at CMS and/or the administration to request that CMS withdraw or delay the DME Medicare Competitive Bidding Program provisions in the DMEPOS/Home Health Proposed Rule and re-engage with industry, patient and clinical stakeholders to develop a better framework for the program. CMS has not yet shared a final rule, and we believe that strong and timely congressional outreach can convince the agency to pause the rule and work on an approach that protects patient access to high-quality DME products and related services.” 

The association encourages stakeholders to rephrase the message and add their own perspectives as they see fit. 

Other resources to consider: 

“The final rule could be released at any time – so please take action today,” AAHomecare stated. 

Medline officially files for IPO 

‘We will create value for our shareholders through our relentless customer focus, stellar execution and commitment to long-term success’ 

NORTHFIELD, Ill. - Medline has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) related to a proposed public offering of its common stock. 

The number of shares to be offered and the price range and other terms for the offering have not yet been determined. If the offering is completed, Medline intends to list its stock on the Nasdaq Global Select Market under the symbol “MDLN.” Goldman Sachs & Co. LLC, Morgan Stanley, BofA Securities and J.P. Morgan are acting as lead bookrunning managers for the proposed offering. 

Company history 

Medline was founded by brothers Jon and Jim Mills in 1966 and was later led by Andy Mills, president, and Charlie Mills, CEO, beginning in 1997. Medline formed a strategic partnership with Blackstone, Carlyle and Hellman & Friedman in 2021, and appointed Jim Boyle CEO and Jim Pigott as COO in 2023.  

The company was previously a publicly traded company from 1972-77. 

CEO comment 

“Becoming a public company is a responsibility that we take seriously,” Boyle said in the Form S-1. “We will create value for our shareholders through our relentless customer focus, stellar execution and commitment to long-term success.” 

Financials 

For the six months ended June 28, 2025, Medline generated: 

  • Net sales of $13.5 billion 
  • Net income of $0.7 billion 
  • Adjusted EBITDA of $1.8 billion 

This represents a net income margin of 4.8% and an adjusted EBITDA margin of 13.3%. During this period, 48.7% of total net sales and 81.8% of Segment Adjusted EBITDA were generated from its Medline Brand segment, while 51.3% of total net sales and 18.2% of Segment Adjusted EBITDA were generated from its Supply Chain Solutions segment.  

Minnesota Governor recognizes role of HME in new proclamation  

MINNEAPOLIS – Minnesota Gov. Tim Walz has officially proclaimed the second week of November as Home Medical Equipment & Services Appreciation Week in Minnesota, according to AAHomecare. 

The proclamation, the first of its kind for a state government, the association says, underscores the value of HME professionals, products and services in making high-quality, home-based care possible. 

“Our industry provides more than products – we provide independence, dignity and peace of mind for families,” said Ashley Plauché, senior director of brand marketing at AAHomecare. “This proclamation honors the accredited suppliers, manufacturers and service companies who work tirelessly to provide the products, education, and compassionate support that help families thrive.” 

The proclamation highlights the role of HME in: 

  • Reducing hospitalizations and health care costs 
  • Supporting end users, families and caregivers 
  • Empowering individuals with complex medical needs to live at home 
  • Strengthening communities by keeping loved ones together 

AAHomecare says the proclamation in Minnesota serves as a model for other states across the country. The association is developing a toolkit to collaborate with other states to request similar proclamations, increasing recognition of HME’s role in home-based care. 

“The HME community in Minnesota has always been deeply committed to its patients,” adds Rose Schafhauser, executive director of MAMES. “We are proud to see the state of Minnesota lead the way in recognizing the value of HME professionals and the care they deliver every day.” 

CMS final rule modernizes payment accuracy, cuts spending waste 

Agency, among other things, moves skin substitutes under physician fee schedule as incident-to-supplies 

WASHINGTON – The Centers for Medicare & Medicaid Services (CMS) sys its calendar year (CY) 2026 Medicare Physician Fee Schedule (PFS) final rule reduces waste and unnecessary use of skin substitutes and introduces a new payment model focused on improving care for chronic disease management. 

“CMS is working to strengthen and transform Medicare for the current and future generations while cracking down on waste and abuse that drives up costs,” said CMS Administrator Dr. Mehmet Oz. “The actions we are taking will improve seniors’ access to high-quality, preventive care that will help them to live longer, healthier lives.”  

Reducing Medicare spending waste for skin substitutes  

CMS currently treats skin substitutes as biologicals for the purposes of Medicare payment. In the CY 2026 PFS final rule, CMS will pay for skin substitutes under the PFS as incident-to supplies, a change expected to reduce Medicare spending on these products by nearly 90% without compromising patient access or quality of care. We estimate this action will reduce gross fee-for-service program spending for skin substitute services by $19.6 billion in 2026, while incentivizing the use of products with the most clinical evidence of success.  

Shifting health care paradigm to prevention, wellness 

CMS is aligning with Health and Human Services Secretary Robert F. Kennedy Jr.’s Make America Healthy Again agenda by repurposing a previous risk assessment code to focus on essential patient behaviors to reduce chronic disease and improve health – physical activity and nutrition. CMS is also improving the care of chronic diseases by ensuring advanced primary care management services are able to integrate behavioral health. Finally, the agency is shifting its focus in quality measurement towards prevention-focused measures by introducing five new outcomes measures focused on the prevention of chronic disease, while simultaneously working to reduce unnecessary burden in quality reporting by removing 10 quality measures that did not directly improve patient health outcomes. 

CMS is also finalizing changes to the Medicare Diabetes Prevention Program to allow more people with Medicare to access coaching, peer support, and practical training in dietary change, physical activity, and behavior change strategies to delay or prevent the onset of Type 2 diabetes for people with prediabetes, at no cost to the beneficiary. 

Philips says it’s maintaining momentum with third quarter results 

AMSTERDAM – Royal Philips’ Connected Care business, which includes Sleep & Respiratory Care, saw comparable sales growth of 5.1% in the third quarter of 2025. 

Adjusted EBITA margin improved 410 bps to 11.4%, driven by increased sales and productivity, partially offset by tariffs. 

The company, as a whole, saw sales of EUR 4.3 billion for the third quarter of 2025, a 3% comparable increase. 

Other results for the Group: 

  • Comparable order intake growth of 8% 
  • Income from operations was EUR 330 million 
  • Adjusted EBITA margin increased by 50 basis points to 12.3% of sales 
  • Operating cash flow of EUR 327 million, with a free cash flow of EUR 172 million 

“In this quarter we maintained our momentum, with AI-powered innovations and long-term partnerships making a real difference for patients and consumers,” said Roy Jakobs, CEO of Royal Philips. “We drove strong order intake and accelerated sales growth, with sustained strength in North America. We expanded margin through innovation, focused execution and cost discipline, remaining firmly on-track as we navigate an uncertain macro environment including tariffs. We are taking disciplined action to achieve the highest standards in patient safety and quality, which remains our number one priority.” 

Philips reiterated its confidence in delivering its full-year 2025 outlook: 

  • Comparable sales growth: 1%-3% 
  • Adjusted EBITA margin: 11.3%-11.8%, now expected toward the upper end of the range. 
  • Free cash flow: EUR 0.2 billion to 0.4 billion (including the payout in the first quarter of 2025 of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the US.) 

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

Apnimed sees Phase 2 positive results for sulthiame to treat OSA 

CAMBRIDGE, Mass. - Apnimed has announced The Lancet has published positive results from the Phase 2 FLOW study evaluating sulthiame, a differentiated, once-daily oral carbonic anhydrase inhibitor, in the treatment of obstructive sleep apnea (OSA). The study demonstrated that sulthiame significantly improved important OSA metrics in adults with moderate to severe OSA, the company says. 

"The positive data from the FLOW trial confirm previous proof-of-concept study results and suggest that sulthiame offers the potential to treat obstructive sleep apnea with a mechanism of action that is distinct from other investigational drugs, including that of our lead asset AD109," said Larry Miller, M.D., CEO of Apnimed. "Multiple mechanisms and approaches are needed if we are to effectively tackle the large prevalence, complexity and heterogeneity of OSA. We are thrilled to have these compelling data published in a peer reviewed scientific journal as prestigious as The Lancet, and are particularly encouraged by the consistent improvements seen across multiple efficacy measures. We look forward to working with our colleagues at Shionogi to advance sulthiame into further clinical development." 

Study design 

The FLOW study, a multicenter, randomized, double-blind, placebo-controlled, dose-finding trial, evaluated three dosages of sulthiame (100 mg, 200 mg, and 300 mg) administered once daily at bedtime for 15 weeks. The study enrolled 298 adult patients with untreated, moderate to severe OSA across 28 sites in five European countries. The primary endpoint, relative change in the apnea-hypopnea index (AHI3a) from baseline to Week 15, was met for all sulthiame doses. A dose-response effect was identified and well-characterized. 

Key findings 

  • Significant reduction in OSA severity: All sulthiame doses demonstrated a consistent and dose-dependent reduction in breathing disturbances, as measured by AHI3a. 
  • Improved nocturnal oxygenation: Sulthiame led to significant improvements in oxygen desaturation index (ODI) and mean overnight oxygen saturation, indicating improved nocturnal oxygenation. 
  • Favorable safety profile: Sulthiame was generally well-tolerated, with adverse events consistent with prior experience and the known pharmacology of carbonic anhydrase inhibitors. Most adverse events were mild or moderate and dose-dependent. 

Related reading 

Convatec responds to CMS’s revised payment rate for skin substitutes 

LONDON – Convatec says CMS’s revised payment rate for skin substitutes represents an estimated headwind of about 1% to 2% of Group revenue for 2026. That is unchanged from the company’s guidance from the first half of 2025. CMS announced Oct. 31 that it plans to pay $127.28 per sq cm for skin substitutes starting Jan. 1, 2026. Convatec makes InnovaMatrix, a placental-derived, FDA-cleared medical device for wound management, including pressure, venous, diabetic, and surgical wounds. “We are confident of delivering long term profitable growth from InnovaMatrix, including developing sales and securing coverage across a range of indications, both within and outside the United States,” the company stated. Convatec says InnovaMatrix is highly effective, with significant health benefits to patients and health care professionals. It also says it recently submitted further real-world evidence (RWE) to CMS on the device, in addition to evidence published in December 2024. The company has a target date for publishing randomized controlled trials in 2026. 

  • Go here to read Convatec’s statement in response to CMS’s draft payment proposal for skin substitutes. 

Bruno expands into new geography, complementary product line 

OCONOMOWOC, Wis. - Bruno Independent Living Aids has acquired Terry Group Ltd (Terry Lifts), a manufacturer of home elevators and platform lifts based in Cheshire, U.K. The acquisition strengthens Bruno’s market position and expands its reach into new geographic regions and complementary product categories. “The purchase of Terry Lifts marks an exciting milestone in our growth strategy,” said Mike Bruno, president and CEO of Bruno. “By combining Bruno’s resources and expertise with Terry Lift’s innovative products and strong regional presence, we can delivery even greater value and service to our customers around the world.” Founded in 1984, Terry Lifts has built a strong reputation for excellence in design, manufacturing and service, with focused distribution throughout Europe and Australia, Bruno says. The two companies together, Bruno says, will enable a broader offering of accessibility products to a wider customer base. “The synergy between our companies creates significant opportunities for innovation and expansion,” said Tim Barrow, managing director of Terry Lifts. “We’re thrilled to join the Bruno family and continue our mission of designing and manufacturing quality lifts to the highest standards.” 

In Massachusetts, auditor finds evidence of DME provided by ineligible providers 

BOSTON – MassHealth, the Office of Medicaid, paid an estimated $521,526 for durable medical equipment (DME) from Jan. 1, 2021, through Dec. 31, 2023, that could not be verified as having been ordered by an eligible provider, according to an audit from the Office of State Auditor. During this period, MassHealth paid a total of about $165.5 million for about 2.3 million DME claims. “When providers submit claims for DME to MassHealth without the relevant information required to identify the ordering provider, MassHealth risks paying for DME that was not ordered by an eligible provider,” the audit states. “Unsupported DME claims represent unallowable costs to the Commonwealth, and MassHealth could have used this money to provide additional services to other MassHealth members or reduce the cost of its services to the Commonwealth.” The office recommends that: 

  • MassHealth not pay claims for DME that do not have a licensed provider’s name and national provider identifier on the associated DME order form; and 
  • MassHealth investigate the claims identified in the audit and recoup any overpayments that it deems appropriate. 

The office also found: 

  • MassHealth paid providers $27,400 for DME that was ordered for members who were deceased; and 
  • MassHealth paid $31,724 for DME that was ordered by providers who were excluded from participating in Medicaid. 

To review all findings and recommendations, go here. 

Respironics executes on previously announced layoffs 

MURRYSVILLE, Pa. - Philips Respironics plans to lay off nearly 200 employees at three facilities in Westmoreland County, Pa., according to a Workforce Adjustment and Retraining Notification (WARN) notice filed with the Pennsylvania Department of Labor and Industry. The layoffs, planned for Dec. 31, 2025, to June 30, 2026, will take place at facilities in Mount Pleasant, New Kensington and Murrysville. The layoffs are part of a previously announced layoff last year. 

MK Battery plans for leadership change in 2026 

ANAHEIM, Calif. - MK Battery has announced that Walker Rheem will succeed Wayne Merdinger as president starting Feb. 1, 2026. Merdinger, who has devoted more than 50 years to the HME industry, including 20 years to MK Battery, will stay on as a member of the company’s board of directors. Earlier this year, Rheem, who has more than 23 years of executive leadership experience, was promoted to executive vice president & general manager at MK Battery. As part of that announcement, Merdinger said: “Walker’s extensive technical prowess, his drive and energy, and his proven leadership abilities uniquely qualify him to take over the day-to-day management of business operations as we look toward the execution of our succession strategy.” Rheem was formerly vice president of business development, Energy Storage and Stationary Power, for MK Battery. Merdinger spent 12 of his 20 years at MK Battery leading the company. 

Prochant embeds AI into RCM services 

CHARLOTTE, N.C. - Prochant has launched a new set of artificial intelligence (AI) capabilities that it says brings automation and intelligence to intake, billing and collection. The capabilities are embedded in Prochant Pulse and delivered as part of Prochant’s revenue cycle management (RCM) services. "Prochant PulseIQ is an extension of our people - not a replacement for them," said Joey Graham, CEO of Prochant. "We don't sell software; we deliver outcomes. By embedding AI directly into our RCM services, we give our teams, and our clients, the intelligence to resolve issues proactively and perform at a higher level." The company says Prochant PulseIQ: 

  • Intake: Accelerates the intake and onboarding process by automatically extracting and validating data from clinical and insurance documents while integrating seamlessly with electronic health records (EHRs).  
  • Billing: Provides advanced logic to review 100% of claims automatically, identifying potential errors or missing information before submission.  
  • Collection: Empowers teams to optimize collections by prioritizing denials based on payment probability and guides workflows based on denial type and payer. 

Prochant says Prochant PulseIQ’s AI-enhanced workflows and analytics have helped clients achieve up to a 56% improvement in denial rates, a 25% improvement in days sales outstanding (DSO) and a 17% improvement in payment rates over a six-month period. Prochant PulseIQ is included with Prochant services and is not sold as standalone software. 

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