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In brief: Invacare layoffs, Philips recall, ResMed exec

In brief: Invacare layoffs, Philips recall, ResMed exec

ELYRIA, Ohio – Invacare is streamlining its operations in the United States, primarily related to headcount reductions, to improve its cost structure, according to a May 4 filing with the U.S. Securities and Exchange Commission. 

As a result, the company anticipates annual pre-tax savings of about $2.8 million, with about $1.9 million to be realized in 2022. It will incur restructuring charges of $800,000 and expects to make cash payments in the same amount, primarily related to severance costs, which will be paid out over the second and third quarters. 

In Europe in the first quarter of 2022, the expected annual pre-tax savings is approximately $3 million, with approximately $1.7 million to be realized in the second half of 2022. In North America, the expected annual pre-tax savings is approximately $2.7 million, with approximately $2.1 million to be realized over the remainder of 2022. As a result, the company incurred total restructuring charges in the first quarter of approximately $3.8 million and expects to make cash payments in the same amount, with the majority of the severance costs related to these actions to be paid in 2022. 

In aggregate, Invacare’s strategic actions announced and implemented to date will result in approximately $4.6 million of restructuring costs and cash expenditures, with the expected pre-tax benefit of approximately $5.7 million in cost savings in 2022, and approximately $8.7 million in annual pre-tax cost savings thereafter. 

Philips recall: FDA proposes new order 

WASHINGTON – The Food and Drug Administration’s Center for Devices and Radiologic Health has proposed that an order should be issued to require Philips to submit a plan to repair, replace or refund the purchase price of recalled devices manufactured after November 2015. 

The FDA says Philips has the right to an informal hearing prior to the agency’s decision on whether to issue the order. 

The CDRH’s proposal is in addition to the FDA’s previous action, under section 518(a), to require Philips to provide notification to customers of the recall and the health risks presented by the recalled devices. 

Philips last week recorded EUR 165 million in additional provisions in the first quarter of 2022 related to its recall of certain CPAP devices.  

SageHome seeks to develop nat’l home mods biz 

ATLANTA – SageHome, a home modifications and aging-in-place provider, has partnered with strategic advisors Cairngorm Capital Partners to make its first acquisition: New Bath Today, an Indianapolis-based bathroom renovation specialist. 

New Bath Today, which focuses on the wet area of a bathroom, a key risk area in the home for aging seniors, serves six states across the Midwest. 

“We have big plans and our partnership with the team at Cairngorm Capital will allow us to accelerate them,” said Brian Hutto, SageHome’s CEO. “The launch of our bath division is the first key stage in our strategy, so we are delighted to collaborate with Mike, Ryan and the rest of the NBT team. Our goal is to develop a national home modification business that addresses all the needs of senior homeowners in a holistic way.”  

Mike and Ryan Redman, New Bath Today’s founding CEO and president, respectively, will continue to lead the business, collaborating with SageHome to expand geographically, as well as into adjacent products and services. 

In total, New Bath Today employs 90 employees, plus a team of vetted accredited subcontractors. 

“We are delighted to be collaborating with SageHome and are excited by the partnership,” Mike Redman, NBT’s CEO. “We believe that we have found the right partners to help us advance our business – those who share our vision for growth but are respectful of our culture and will look after our people. This partnership is a perfect fit for us and will offer opportunities for rapid growth with SageHome and Cairngorm Capital.” 

Cairngorm Capital is a specialist private investment firm that provides equity capital, strategic advice and management expertise to ambitious companies, to drive transformational growth. Cairngorm Capital’s buy, build and transformation expertise, gained from growing other assisted living businesses, such as Millbrook Healthcare, will support SageHome’s ambition to execute an accelerated growth strategy. 

“We are thrilled and excited that we are able to help Brian, Tony and Joe advance their strategic plans,” said Andrew Steel, managing partner of Cairngorm Capital. “Our firm is very conscious of the home improvement needs of an aging population – we already own two UK companies delivering healthcare solutions in this market and we look forward to sharing our knowledge. Both SageHome and NBT are excellent examples of the type of companies that we like to partner with. They have differentiated services and are led by excellent management teams.” 

ResMed exec to take reins at Insulet 

ACTON, Mass. – Jim Hollingshead, president of ResMed’s Sleep and Respiratory Care business, will succeed Insulet President and CEO Shacey Petrovic, who is stepping down on June 1. Hollingshead has served as an independent member of Insulet’s board of directors since 2019. Petrovic, who will remain on the board and will serve as an advisor to the company through May 2023, said she was stepping down for family reasons. “It has been an honor to serve as Insulet’s CEO and to have been part of this remarkable team for more than seven years,” said Petrovic. “I am extremely proud of what we have accomplished in my time as CEO. We have made significant strides to improve the lives of people with diabetes, while enhancing Insulet’s ability to innovate and operate with excellence.” In January, the company received clearance from the U.S. Food and Drug Administration for its Omnipod 5, the first tubeless, automated insulin delivery system that offers full compatible smartphone control.   

Brightree’s Mellott named Best MedTech CEO 

PEACHTREE, Ga. – Brightree CEO Matt Mellott has been named Best MedTech CEO in the 2022 MedTech Breakthrough Awards. The award is given to individuals who have made significant contributions to the global health and medical technology market. As Brightree CEO, Mellott has overseen a revamp of Brightree’s product team, and spearheaded development and execution of a comprehensive connected care strategy that addresses unique sets of market shifts and challenges permeating the HME and home infusion pharmacy industries. Last year, Brightree’s Brightree Patient Collections (BPC) solution was selected as the winner of the “Best New Technology Solution for Healthcare Payment.” 

Viemed Healthcare sees investments pay off 

LAFAYETTE, La. – Viemed Healthcare reported core net revenues of $30.2 million for the first quarter of 2022, an increase of $4.7 million or 18% over the same quarter in 2021.  

Total net revenues for the current quarter were $32.3 million, which included approximately $2.1 million for contact and vaccine tracing services related to the COVID-19 pandemic. 

“The record setting quarter in our core business is a reflection of the momentum we are beginning to see in a post pandemic environment,” said Casey Hoyt, CEO. “Our investments in people, technology and inventory during the pandemic have positioned us extremely well to actively engage with patients, providers, and payors as pandemic restrictions abate. We are invigorated by the increasing opportunities for face-to-face interaction with the people we serve in the coming months.” 

Net income before taxes for the quarter was approximately $2.5 million, and adjusted EBITDA for the quarter was approximately $7.3 million.  

Permobil releases sustainability report 

STOCKHOLM – Permobil has published its first comprehensive sustainability report to outline its long-term targets for each of seven focus areas, as well as progress to date. Progress to date includes a Mobility-related Quality of Life 7D (MobQol-7D) pilot study conducted with 665 power wheelchair users to assess the impact of mobility aids. “At Permobil, we Innovate for Individuals, but it’s equally important that we strive to innovate for all our stakeholders,” said Jonas Cederhage, EVP Supply Chain and responsible for sustainability at Permobil Group. “We have a long-term commitment to make things better for our users, employees, the environment, and businesses and communities we’re connected to.” Other progress to date includes a 16% reduction in Scope 1 and 2 CO2 emissions; a focus on talent management and reviewing its workplace accessibility to make Permobil an even more inclusive and accessible workplace; and a continued focus on responsible sourcing. The report also includes the personal stories of two Permobil wheelchair users. 

Motion names new CEO 

TORONTO – Motion has named Sue Gilpin CEO. She replaces Thecla Sweeney, who is stepping down after holding the roles of CEO and executive chair for four years. Gilpin has served as senior director, people and operations West at Motion since 2018. “This appointment is a strong vote of confidence for me and Motion’s leadership team,” said Gilpin. “Collectively we have the right skill set, knowledge, and experience internally to make this a smooth transition and carry on the business plan that we have built together with Thecla over the last four years.” Gilpin has more than 20 years of experience in HR at Motion and before that Golf Town and Staples Canada. Motion says it is Canada’s leading provider of mobility and home accessibility solutions with 54 locations. 

Apnimed secures funding for OSA treatment 

CAMBRIDGE, Mass. – Apnimed, a clinical-stage pharmaceutical company focused on developing oral pharmacologic treatments to address obstructive sleep apnea and related disorders, has raised $62.5 million of committed capital in a Series C financing led by new investor Sectoral Asset Management. “Patients with obstructive sleep apnea are in need of new pharmaceutical treatment options to manage this serious, life-altering, and life-threatening disease,” said Larry Miller, M.D., CEO of Apnimed. “We’re pleased to have assembled this well-respected and committed group of investors as we seek to change the treatment paradigm for OSA and related sleep disorders.” Also participating were Alpha Wave Ventures, NexPoint, and others, joining existing investors Morningside Ventures, Seligman Investments and Tao Capital Partners. The proceeds will support Apnimed’s plans to advance its lead program, AD109, into Phase 3 development. The company will also strategically grow the team to support further program development and initial commercial plans.  

Medtrade East takes shape 

ATLANTA – Medtrade East will host a “Welcome To Atlanta Reception” in the Expo Hall Tuesday, Oct. 25, from 4:00 p.m. to 5:00 p.m. and will hold the popular “Ask The Experts” session on Monday, Oct. 24, from 5:00 p.m. to 6:15 p.m. “Ask The Experts” will be a free event for all attendees who hold a conference pass. Show organizers are hopeful that a 21% bump in attendance at Medtrade West in Phoenix last month will carry over to Medtrade East in Atlanta. “The bump in attendance was a sign that people are ready to get back to business, but we are not taking anything for granted,” said Show Director York Schwab. “With that in mind, we’ll be rebranding the ‘Preview Night’ and calling it the ‘Welcome To Atlanta Reception.’” Show organizers recently announced a move to one show, beginning in 2023, but have not yet announced a date or location. 

One Drop recognized for AI innovation 

NEW YORK – One Drop received an honorable mention as part of Fast Company's 2022 World Changing Ideas Awards for its AI-enabled cardiovascular disease prevention program. The awards recognize products, concepts, companies, policies and designs that pursue innovation for the good of society and the planet. "At One Drop, we exercise a data-driven, personalized, and proactive approach that empowers people with diabetes and other chronic conditions to take ownership of their health," said Jeff Dachis, One Drop CEO and founder. "With unencumbered, real-time access to our own health information and the foresight to avoid problems before they happen, everyone can more consistently engage in behaviors that drive cost-saving outcomes and improve overall well-being instead of relying solely on the break-fix cycle of traditional healthcare." One Drop’s program for CVD prevention, which is available via the company's digital health platform (iOS and Android), seeks to remove barriers to care access, while lowering health care costs tied to preventable chronic conditions like heart disease. Participants receive personalized support through a holistic set of tools, including connected medical devices, AI-powered health predictions and trends, one-on-one coaching, and an interactive learning experience grounded in behavioral science. The program was made possible by a strategic partnership between One Drop and Bayer. 

Quality Biomedical taps former Apria exec as advisor 

BOULDER, Colo. – Quality Biomedical has appointed Jack Baikie to its advisory board. Baikie is a supply chain expert who retired from his post as chief procurement officer at Apria this year. “I am very honored to be asked to serve on Quality Biomedical’s Advisory Board,” said Baikie. “As a senior executive in the home health care industry, I observed the significant differentiation in service and supply chain solutions that Quality Biomedical has developed and deployed, and I am very excited to play a part in helping them maintain their impressive growth trajectory.” Baikie has also held roles at Compaq Computer (now Hewlett Packard), Gateway Computer, Raytheon Space and Airborne Systems. 

NSM earns re-accreditation 

NASHVILLE, Tenn. – National Seating & Mobility has again earned the Joint Commission’s Gold Seal of Approval for Home Care Accreditation. The distinction means the company has demonstrated continuous compliance with performance standards on providing safe and quality patient care. “NSM is proud to be awarded Home Care re-accreditation from the Joint Commission,” said Bill Mixon, NSM CEO. “This honor reflects our organization’s long-standing commitment to the health and safety of our clients as we work to provide the solutions they need to move through life independently.” NSM says it’s the only complex rehab provider that has been approved by the Join Commission since 2006. The re-accreditation process included unannounced onsite reviews at the company’s locations around the country. During these visits, Joint Commission reviewers evaluated compliance with standards spanning several areas, including the provision of care, treatment and services, emergency management, human resources, individual rights and responsibilities, and leadership. 

Rhythm launches online portal 

ST. PETERSBURG, Fla. – Rhythm Healthcare has launched a new customer portal for placing and managing online orders. Features of the portal include online ordering, search function, order tracking, invoice information, case/query submissions and live chat. The company asks its provider customers to reach out to their account representatives to request website login credentials. Rhythm Healthcare recently added a third distribution center in Ontario, Calif., allowing it to better serve its customer base in the western United States. The 20,000-square-foot facility joins existing facilities in St. Petersburgh, Fla., and Memphis, Tenn. 

CareCentrix names health plan exec as chief medical officer 

HARTFORD, Conn. – CareCentrix has named longtime health plan executive and physician Carmella Sebastian, M.D., M.S., as chief medical officer. Sebastian most recently served as vice president of clinical operations at Oscar Health and, before that, she held leadership roles at Florida Blue, Humana and Blue Cross Blue Shield of Northeastern Pennsylvania. In her role at CareCentrix, she will guide the organization’s clinical vision, overseeing all aspects of clinical strategy and operations. “Dr. Sebastian brings more than 25 years of deep expertise making health plans clinically effective and her guidance will help us ensure CareCentrix is arranging the highest possible quality care in the home,” said CareCentrix President and COO Laizer Kornwasser. “We’re confident that her impressive track record of innovative thinking and proven clinical results will provide tremendous value to CareCentrix clients and their members.” CareCentrix says Sebastian joins the company at a time of rapid momentum, driven by the increasing demand for care in the home. The company recently reintroduced its palliative offering as Serious Illness Care at Home. 

Oventus reaches milestone 

BRISBANE, Australia – Oventus Medical’s direct-to-consumer market model reached its first optimization milestone in the third quarter of its fiscal year 2022: It delivered growth in active leads with a reduction in advertising spend of 20% less than the previous quarter, the company has announced. Despite the March quarter being slow due to seasonality, Oventus says new leads increased 63% with 6,100 generated. “With the weakest of insurance seasonality period behind us, we are looking forward to executing on our plans and bringing the benefits of the O2Vent therapy to our patients and partners,” said John Cox. CEO. “We can see the pipeline building from our direct-to-consumer marketing and remain focused on converting that pipeline info satisfied O2Vent users over the balance of 2022.” Oventus says completed telehealth consults increased by 6% to 1,043 in the third quarter. It reported revenue was $233,000, down from a record December quarter but above the two previous quarters. 

InfuSystem enters contract worth up to $12 million 

ROCHESTER HILLS, Mich. – InfuSystem has entered into a three-year, master service agreement with a global health care technology and diagnostic company that, after an initial ramp-up period, is expected to generate about $10 million to $12 million in annual revenue. As part of the agreement, InfuSystem will provide its biomedical services, including annual preventative maintenance and repair solutions, to a majority of the fleet of infusion pumps at hospitals and other medical facilities under contract with this company. "We will deliver our 'white glove' biomedical services for their infusion pump fleet throughout North America,” said Richard Dilorio, CEO. “This master service agreement could potentially lead to additional opportunities to serve this customer to provide other products and services we offer under our DME Services segment. The wide-ranging expertise and capabilities of our DME platform, along with our proven track record of industry-leading service, and our national network of service centers, were important factors in their decision to partner with InfuSystem." The unnamed company’s fleet consists of more than 300,000 pumps located in 1,200 medical facilities, including 800 hospital systems in the U.S. and Canada. InfuSystem will conduct the service onsite at the acute care facility or off-site at one of its seven service centers. 

CAIRE expands portfolio in Latin America 

BALL GROUND, Ga. – CAIRE expects to make its Companion 5 and NewLife Intensity 10 stationary oxygen concentrators available in Latin America in July, following anticipated approval by the Brazilian Health Regularity Agency (Anvisa). “During the past two years, the COVID-19 pandemic oxygen shortages throughout South America have underscored the need to expand CAIRE’s portfolio of equipment available to providers to serve patients prescribed oxygen as they are discharged from the hospital,” said Barry Hassett, vice president of global marketing. CAIRE’s FreeStyle Comfort POC, Eclipse 5 transportable oxygen concentrator and Stroller portable and Liberator reservoir liquid oxygen systems are already available in Brazil.


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