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In brief: Inogen growth, Permobil expansion, vax requirements

In brief: Inogen growth, Permobil expansion, vax requirements

GOLETA, Calif. – Inogen reported $93.1 million in total revenue for the third quarter of 2021, up 25.3% from the same period last year. 

By business segment, it reported $36.3 million in revenue for domestic direct-to-consumer sales, up 24.6%; and $12.1 million for rentals, up 61.3%. 

“I continue to be pleased with the sustained demand we are seeing for our market-leading portable oxygen concentrators, in spite of the challenging supply chain environment,” said Nabil Shabshab, president and CEO. “We are working diligently to source critical components and help provide patients with access to our products, while navigating higher costs and supply chain constraints associated with the semiconductor chip shortage.” 

Inogen credited sustained demand, improved average selling prices and the reduced impact of the COVID-19 pandemic for revenue growth in the third quarter. 

The company noted, however, that it was unable to fulfil some orders, particularly in its domestic business-to-business channel, due to supply chain constraints. Sales for that channel were $22.8 million in the third quarter, down 1.1% from the same period last year. 

Inogen expects the semiconductor chip shortage to continue to have a negative impact on its ability to manufacture products, as these chips are used across all its POCs, in batteries and printed circuit boards. 

“The company will continue to work with its manufacturing partners and explore other open-market avenues to procure necessary semiconductor chips, but it expects challenges in terms of supply and pricing inflation until supply meets demand and prices stabilize,” it stated in a press release. “If the company is unable to obtain sufficient supply, it could be forced to further slowdown or temporarily halt production.” 

Inogen also expects increased costs of goods sold per unit in the fourth quarter due to cost inflation of materials and labor throughout the supply chain. It expects $5 million to $7 million of higher material costs associated with open-market purchases of chips for full year 2021. 

“Based on its assessment and industry feedback, the company still believes that these supply shortages and increased costs may continue through the second quarter of 2022,” it stated. “In addition, the increased cost of goods sold per unit in the first and second quarters of 2022 is expected to be higher than the cost increase expected in the fourth quarter of 2021 based on the information known to date.” 

Inogen isn’t providing detailed guidance for full year 2021 due to uncertainty, but it expects total revenue in the fourth quarter to be similar to revenue in the fourth quarter of 2020 and adjusted EBITDA and operating and net losses to be negative. Additionally, it expects operating and net losses for full year 2021. 

Option Care invests for future growth 

BANNOCKBURN, Ill. – Option Care Health reported net revenue of $891.9 million and gross profit of $203 million for third quarter of 2021, compared to $781.6 million and $174.2 million, respectively, in the same quarter last year. 

Net income was $35.5 million vs. $1.7 million. Adjusted EBITDA was $78 million vs. $59.2 million. 

“The third quarter results reflect the dedication of the entire team and our ability to generate profitable growth and significant cash flow,” said John Rademacher, CEO. “While navigating the current pandemic situation, we are investing for future growth, including the recently announced acquisition of Infinity Infusion Nursing.” 

Option Care in October announced it had acquired Infinity for $50 million. 

For the full year 2021, Option Care Health is revising its financial guidance as follows: 

Net revenue of $3.35 billion to $3.50 billion (unchanged); 

Adjusted EBITDA of $283 million to $288 million; and 

Cash flow from operations of at least $180 million. 

Viemed overcomes headwinds 

LAFAYETTE, La. – Viemed Healthcare reported net revenues of $27.8 million that are attributable to the company’s core business, a 12% increase compared to the same period last year and a 6% increase compared to the second quarter. 

Total net revenues for the third quarter were $29.3 million, including $1.5 million in net revenues for contact and vaccine tracing services and product sales related to the COVID-19 pandemic. 

“We are excited to report another record-breaking quarter despite headwinds associated with the Delta variant,” said Casey Hoyt, CEO of Viemed. “The resiliency of our workforce and the strength of our relationship has driven our continued grow during these unprecedented times.” 

Viemed reported net income of $1.8 million for the third quarter this year vs. $2.8 million for the same period last year. 

The company says it grew its ventilator patient count to 8,200 by Sept. 30, 2021, compared to 8,103, by June 30, 2021. 

“The nationwide sales training programs conducted during the previous quarter have concluded and are expected to give our sales force new products to add to our superior service model,” Hoyt said. “As we look forward, we continue to believe that our ability to provide technology enabled health care in the home setting will create enormous value and positive patient outcomes.” 

Viemed expects to generate net revenues of about $27.8 million to $28.8 million that are attributable to its core business during the fourth quarter. 

Permobil expands manual offering 

TIMRA, Sweden – Permobil has entered into an agreement to acquire Stockholm-based Panthera, strengthening its offering of manual wheelchairs.  

“Panthera’s products strengthen Permobil’s offering in the market with the world’s lightest wheelchairs for active users, alongside our Progeo and TiLite ranges,” said Bengt Thorsson, CEO and president of Permobil. 

Permobil acquired Pasco, Wash.-based TiLite in 2014. 

Both Permobil and Panthera say they share the same main focus: increasing the quality of life for people living with disabilities. 

“We have the same passion for our users and share the same values,” said Jalle Jungnell, owner of Panthera. “We deliver products and knowledge, which makes everyday life easier for our users.” 

Permobil and Panthera are expected to complete the transaction in early January 2022. They did not disclose terms. 

CMS implements vax requirement for health care facilities 

WASHINGTON – CMS will require COVID-19 vaccinations for eligible staff at health care facilities that participate in the Medicare and Medicaid programs. “Ensuring patient safety and protection from COVID-19 has been the focus of our efforts in combatting the pandemic and the constantly evolving challenges we’re seeing,” said CMS Administrator Chiquita Brooks-LaSure. “Today’s action addresses the risk of unvaccinated health care staff to patient safety and provides stability and uniformity across the nation’s health care system to strengthen the health of people and the providers who care for them.” Facilities covered by this regulation must establish a policy ensuring all eligible staff have received the first dose of a two-dose COVID-19 vaccine or a one-dose COVID-19 vaccine prior to providing any care, treatment or other services by Dec. 5, 2021. All eligible staff must have received the necessary shots to be fully vaccinated – either two doses of Pfizer or Moderna or one dose of Johnson & Johnson – by Jan. 4, 2022. The regulation provides for exemptions based on recognized medical conditions or religious beliefs. 

AAHomecare names Mellott, Pontzius to board 

WASHINGTON - AAHomecare this week added two experienced HME leaders to its board of directors: Matt Mellott of Brightree and Tom Pontzius of 3B Medical Products. “AAHomecare’s effectiveness as an advocate for our industry is dependent on the savvy and highly accomplished HME professionals who make up our board of directors,” said Tom Ryan, AAHomecare president and CEO. “Proven leaders like Matt Mellott and Tom Pontzius make this group even stronger and will help us win on the legislative, regulatory, and payer relations challenges and opportunities that lie ahead.” Mellott, president and CEO of Brightree, brings 30-plus years of experience in the health care industry to the board. Prior to joining Brightree, he was president of MedBridge Healthcare, a sleep disorder diagnostic testing and respiratory therapy provider he co-founded in 2004. Pontzius, who was recently named president at 3B, also has more than 30 years of experience in health care. Prior to 3B, he was the leader of industry advocacy and business development for Philips and has served in other leadership roles in the company since 2008.  

Insulet celebrates Diabetes Awareness month 

ACTON, Mass. – Insulet, maker of the Omnipod, will virtually ring the closing bell at the Nasdaq Stock Market on Nov. 15, as part of its planned activities to recognize Diabetes Awareness Month and World Diabetes Day during the month of November. “We are passionate about improving the lives of people with diabetes and at Insulet we strive to make Pod therapy universally accessible to anyone requiring daily insulin,” said Shacey Petrovic, president and CEO. “With over 400 million people living with diabetes worldwide and 11 to 12 million in the countries we serve today, we’re committed to making an impact on this global epidemic.” Throughout the month, Insulet will sponsor various community events, including Children with Diabetes’ Virtual Friends for Life, Risely Health’s Together T1D, and Beyond Type 1’s Community Table focusing on diabetes language. The company has also partnered with Senita to offer a collection of fitness apparel with a portion of the proceeds funding scholarships for students living with diabetes. Insulet employees will also help spread awareness throughout November with various activities, including sharing their personal stories about living with the disease and wearing blue on Fridays. 

Ottobock acquires complementary portfolio 

DUDERSTADT, Germany – Ottobock, a leading global innovator for prosthetics, orthotics, and exoskeletons, has acquired suitX, which specializes in the research and development of occupational and medical exoskeletons. The portfolios of Ottobock and suitX are complementary and together offer exoskeletons that relieve strain on the body during overhead work and jobs involving lifting. suitX founder and former CEO Dr Homayoon Kazerooni, will remain with the company in the role of chief scientist. “Together with suitX, Ottobock´s exoskeletons business Paexo will become a world leading provider of exoskeletons in production, logistics, servicing, and the trade sector,” said Philipp Schulte-Noelle, CEO of Ottobock. “We will jointly create significant socio-economic benefits by improving occupational health for employees while reducing sickness absence and treatment costs for companies and healthcare systems.” suitX will become part of Ottobock Bionic Exoskeletons (formerly Ottobock Industrials), the company's division for the development of occupational exoskeletons. The management of Ottobock´s global Bionic Exoskeletons business, which runs under the brand name Paexo, will continue to be handled from Duderstadt, Germany. 

AOPA anticipates O&P increase 

WASHINGTON – While CMS has not officially released it, the 2022 O&P Medicare fee schedule is expected to increase by 5.1%, according the American Orthotic and Prosthetic Association. 

That is larger than any annual Medicare increase in the last 30 years, says AOPA. 

The annual increase to the Medicare O&P fee schedule is based on the annual change to the Consumer Pricing Index for all urban areas (CPI-U) from June to the same month the previous year, adjusted by an annual productivity adjustment (MFPA). The CPI-U from June 2020 to June 2021 was 5.4%. 

While the MFPA has not officially been released for the 2022 DMEPOS Medicare fee schedule, the 2022 MFPA for ambulance services, which is based on the same statute as DMEPOS, is -0.3%. Assuming the DMEPOS MFPA for 2022 will be -0.3%, AOPA is confident that the net increase in the 2022 Medicare O&P fee schedule will be 5.1%. 

RESNA to consider ATP recert exceptions 

ARLINGTON, Va. – Certified assistive technology professionals that were unable to fulfill the work experience requirement for re-certification as a result of the ongoing public health emergency and are scheduled to be recertified between Sept. 1, 2021 – April 1, 2022, may apply for an exception from the RESNA Professional Standards Board, which will make decisions on a case-by-case basis. ATPs can submit their recertification application (RESNA Recert Application 2021.pdf) as soon as possible electronically to [email protected] In the work experience section on page two, they should request a PHE Work Experience Exception Review in the space provided to describe their job responsibilities relating to AT service delivery. RESNA also reminds ATPs who finds themselves in a situation where they are not working, that they can change their status to inactive for up to two years. FMI: www.resna.org. 

BOC seeks certificant nominations 

OWINGS MILLS, Md. – The Board of Certification/Accreditation (BOC) is calling for nominations for its third annual Certificant of the Year Award. The award recognizes one BOC-certified individual each year for outstanding achievements in service, research and outreach. “The talents and achievements of BOC-certified professionals are abundant,” said Matthew Gruskin, COO “We created our Certificant of the Year Award to honor those going above and beyond to improve the lives of their patients and community.” The BOC Certificant of the Year Award distinguishes a professional in good standing in any of BOC’s six certification areas (DME specialist, mastectomy fitter, orthotic fitter, orthotist, pedorthist or prosthetist). Nominees should demonstrate exceptional service to patients, notable achievements in research, commitment to giving back to the community and/or outreach to developing countries or other underserved areas. Nominations may be submitted online at www.bocusa.org/certificant-of-the-year through Dec. 12. 

Intuity Medical launches POGO 

FREMONT, Calif. – Intuity Medical, a medical technology and digital health company focused on diabetes, has announced that its POGO Automatic Blood Glucose Monitoring System is now available in the U.S. It features 10-test cartridge technology that makes a glucose test possible with only the press of a button and without needing to carry separate test strips and lancets.  “We know that people with diabetes are more effective at managing their diabetes when they regularly check their blood glucose and use the information to take action,” said Daniel Einhorn, MD, medical director of Scripps Whittier Diabetes Institute, president of Diabetes and Endocrine Associates, and chairperson of the Intuity Medical Scientific Advisory Board. “However, my patients and millions of others with diabetes have struggled for decades with the burden of checking their glucose because it’s complicated, there’s a lot to carry around, and it’s intrusive. What they’ve needed is a simple, quick, and truly discreet way to check their blood glucose, so they’ll actually do it.” POGO test results can automatically sync via Bluetooth with the free Patterns app, which is available for download on the user’s smartphone (iOS and Android). The Patterns app helps users get the most from their test results by helping them see glucose trends so they can make better decisions between physician visits to achieve their glucose goals.  

NSM expands in Florida 

NASHVILLE, Tenn. – National Seating & Mobility has expanded into the Florida panhandle with the acquisition of Comfort N Mobility in Gulf Breeze, Fla. Owned by Jared and Jenna Whipkey, Comfort N Mobility specializes in a wide variety of mobility products and will now expand its offerings to include home accessibility solutions. “At NSM, our desire is to help people achieve independence by ensuring the have access to the most advanced mobility and accessibility solutions available, a commitment Comfort N Mobility shares,” said Bill Mixon, CEO of NSM. “This acquisition positions us to better serve clients across the Florida panhandle and help them attain their independence goals.” Jared Whipkey, a former quarterback at Florida State University and a former hospital system exec before acquiring Comfort N Mobility, will join the NSM team as manager and lead ATP of NSM’s Pensacola branch. Comfort N Mobility marks NSM’s 12th acquisition this year. 

InfuSystem earns three-year agreement with large provider 

ROCHESTER HILLS, Mich. – InfuSystem Holdings, a provider that facilitates outpatient care for DME manufacturers and health care providers, has entered into an exclusive three-year pain management agreement with a leading U.S. health care provider with more than 12 million members. As part of the service agreement, InfuSystem will provide InfuBLOCK, its pain management therapy, which includes electronic infusion pumps for continuous peripheral nerve block, a 24/7 clinical hotline, biomedical services and accompanying supplies. “We are pleased that InfuSystem has been elected by one of the nation’s leading health care providers to be their exclusive provider of pain management services in the northern California region, including the state of Oregon,” said Richard Dilorio, CEO of InfuSystem. “This pain management agreement represents an important milestone for InfuSystem, as our team continues to build significant momentum in the adoption of our pain management therapy to drive future revenue.” InfuSystems’ DME Services segment is comprised of direct payer rentals, pump and consumable sales, and biomedical services and repair. The company operates Centers of Excellence in Michigan, Kansas, California, Massachusetts, Texas and Ontario. 

AirAvant tapped to serve veterans 

DEERFIELD, Fla. – AirAvant Medical and First Nation Group have partnered to provide the FDA-cleared Bongo Rx Expiratory Positive Airway Pressure device to veterans and active-duty military members suffering from obstructive sleep apnea. First Nation Group is a medical-surgical supplier for all federal government agencies. “The opportunity to proudly serve veterans attracted AirAvant Medical to the partnership,” said Bruce Sher, co-president and co-founder. “It’s an honor to respond to our veterans’ sleep therapy needs.” For veterans who are not good candidates for CPAP therapy or who are newly diagnosed with mild to moderate OSA without significant co-morbidities, the Bongo Rx option is an effective alternative sleep therapy solution, the companies say. 

Lifeway Mobility debuts in Rochester 

ROCHESTER, Minn. – Lifeway Mobility is expanding its coverage area in southeastern Minnesota. The company will now offer stair lifts, wheelchair ramps and a variety of basic transfer aid solutions to those living in Rochester, Minn., and surrounding areas. “We are looking forward to providing extended coverage to welcome even more satisfied customers from the Rochester and surrounding communities in south central/eastern Minnesota to the Lifeway Mobility family,” said Bruce Stevenson, Minnesota general manager. Lifeway Rochester will initially be supported by the company’s nearby legacy location in Minneapolis and Ability Solutions in Burnsville, Minn., which have more than 20 years of experience providing accessibility solutions in Minnesota and western Wisconsin. 

Ability Members Group grows 

TORONTO – Ability Members Group has added two new members: Action Medical, with locations in Woodstock and Brantford; and Westin Healthcare located in Brampton. Ability Members Group, a network of independent HME providers, has a goal of reaching 100 members. “Our ongoing growth reflects the value and benefits that we are able to bring to our members,” said Jamie Church, CEO, Ability Members Group. “We’re excited to have Action Medical and Westin Healthcare on board. They bring energy, experience and commitment to helping clients with aging at home and independent living.” Ability Members Group says it is committed to helping its members grow through operational excellence and improved profitability, collaboration and financial transparency. It launched in 2017 with 15 members.  

VMI gets exclusive with FR Conversions 

PHOENIX – Vantage Mobility International has a new exclusive representation partnership with FR Conversions, a second-stage manufacturer of retail and commercial products. As part of the partnership, VMI will offer an expanded portfolio of accessible vehicle solutions to customers through its more than 300 authorized dealerships in the U.S. and Canada. “The spirit of innovation at VMI stems from the desire to create solutions for our customers,” said Mark Shaughnessy, CEO of VMI. “We are excited to offer a broader selection of products through VMI’s distribution channels thanks to the products expertly designed and engineered by FR Conversions.” Full terms of the partnership were not disclosed. VMI is a manufacturer of wheelchair accessible vehicles built on Toyota, Honda and Stellantis chassis.

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