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In brief: Invacare sales decrease, smart home market, ARPA payments

In brief: Invacare sales decrease, smart home market, ARPA payments

ELYRIA, Ohio - Invacare Holdings reported its predecessor, Invacare Corp., had net sales of $165.5 million for the first quarter 2023, a decrease of 17.7% compared to the same period last year. 

During the first quarter, Invacare announced that its U.S. entities, including Freedom Designs and Adaptive Switch Laboratories, had filed for Chapter 11 bankruptcy. They emerged from bankruptcy on May 5. 

“Year-to-date, we've made tremendous strides in all aspects of the company’s transformation plan,” said Geoff Purtill, president and CEO. “With Chapter 11 behind us, our focus is on driving operational excellence and delivering profitable long-term growth in our core lifestyle and mobility and seating product categories. This is a new beginning for the company and a great opportunity to redefine the business for the future and realize our long-term growth potential.” 

Constant currency net sales decreased 13.2%. Excluding the divestiture of respiratory products, constant currency net sales declined 7.7%, with the largest decline in North America as result of the bankruptcy filing and product discontinuation. Operating loss improved by 37% to $10.4 million compared to a loss of $16.6 million the previous year. Adjusted EBITDA loss improved by 30% to $6.2 million, compared to $8.6 million the previous year. 

Invacare says demand for lifestyle and mobility and seating products remained resilient on a global basis. In Europe, profitability improved more than 90% compared to Q122 driven by gross profit expansion.  

The company continues to execute strategic actions, including product line rationalization, footprint optimization, supply chain simplification, revisiting the IT infrastructure, and organization rightsizing.  

“Building on our May 5th emergence from bankruptcy, we continue to accelerate the execution of our transformation plan, which has yielded positive results in Europe, and I am optimistic it will generate similar improvements in North America,” said Purtill. “We look forward to providing updates on additional strategic actions as they are determined.” 

Smart home market on the rise 

NEW YORK - The smart home health care market grew 25% in 2022 to reach $22.9 billion worldwide, but that growth rate will be hard to sustain, despite the considerable potential for further growth, according to global technology intelligence firm ABI Research. 

Smart home health care, encompassing connected home care, remote patient monitoring and social robotics, can improve the health and care of the most vulnerable, while reducing manpower and costs, says ABI in its Smart Home Healthcare market data report. 

"Demographic direction, economic reality and technology capabilities all align and support the potential of smart home health care demand, but it remains a market stifled by channel issues, funding complexity and inertia," says Jonathan Collins, research director, Smart Home and Buildings, at ABI Research. 

There are clear pockets of growth, particularly in remote patient monitoring applications, supported by health insurance requirements and growing consumer awareness of the value of connected services, according to ABI. 

"Last year saw strong growth for continuous glucose monitoring (CGM) shipments and services,” Collins said. “The study finds that CGM shipments grew 28% year on year in 2022, showing CGM as a prime example of connectivity, bringing greater flexibility and value to long-term medical management of a chronic condition and creating lasting, valuable opportunities.” 

CMS to release ARPA payments in Ohio 

COLUMBUS, Ohio – The Ohio Department of Medicaid (ODM) announced recently that it received CMS approval to release the second half of the managed care portion of American Rescue Plan Act (ARPA) relief payments to health care providers, including DMEPOS suppliers. The relief is based on Medicaid managed care claims paid from July 1, 2020, through June 30, 2021. ODM said in its announcement that it’s “highly likely that providers will receive multiple checks from multiple plans,” and suggests that providers log into the ARPA Provider Relief Dashboard to determine totals due by each managed care organization. The managed care portion follows ARPA relief calculated on fee-for-service claims that Ohio providers received in March 2022. AAHomecare worked with OAMES Executive Director Kam Yuricich and her leadership team to secure the relief. 

Merits to launch new ERP system in early June 

FORT MEYERS, Fla. – Merits will launch a new company-wide enterprise resource planning (ERP) system on June 5 to bring improved efficiencies and greater transparency across all areas of the business. It has been designed to streamline operations, track inventory levels in real-time, generate quotes and invoices quicker, and manage customer communication more effectively. The company says, while customers may not see a lot of these changes happening in the background, documents such as quotes, order confirmations, shipping confirmations and invoices will have a new look. Merits suggests customers contact their sales representative if they would like to see these documents before June 5. Merits offices in Florida and Nevada will not ship on June 1-2 and resume shipping on Monday, June 5. Quotes will continue to be entered during those days. For questions, please contact the sales department at 239-772-0579. 

BioMatrix Specialty Pharmacy taps Kathleen Kramm for leadership role 

PLANTATION, Fla. – BioMatrix Specialty Pharmacy has named Kathee Kramm as president and COO, where she will play an integral role in BioMatrix's strategic priorities as a leader in the specialty infusion pharmacy industry. Most recently, Kramm served as president and co-founder of AxelaCare Health Solutions (now Optum Infusion), where her key areas of focus included operations, national sales teams, nursing networks, and payer alliances to improve care and therapy access for patients with rare and chronic health conditions. Prior to AxelaCare, she was a co-founder of Home Patient Care, which eventually was sold to Amerisource Bergen and rebranded as US BioServices. “We are excited to partner with Kathee and welcome her to our executive leadership team," said CEO Nick Karalis. "Kathee's background, experience and leadership will further enhance BioMatrix's investment and focus on specialty infusion, bleeding disorders, 340b and HUB/ LDD services. Her skill set combined with her enthusiasm and entrepreneurial spirit makes her a perfect addition to the team."


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