In brief: Medicare’s improper payments, DeltaWave’s expanded clearance & SleepRes’ new exec 

WASHINGTON – The Medicare Fee-for-Service (FFS) estimated improper payment rate was 6.55%, or $28.83 billion, compared to the FY 2024 reported rate of 7.66%, or $31.70 billion, according to a new fact sheet from the Centers for Medicare & Medicaid Services (CMS). 

The FY 2025 estimate marks the ninth consecutive year this rate has been below the 10% threshold for compliance established by improper payment statutory requirements, the agency says. 

The Medicaid estimated improper payment rate was 6.12%, or $37.39 billion, compared to the FY 2024 reported rate of 5.09%, or $31.10 billion. Of the FY 2025 Medicaid improper payments, 77.17% were the result of insufficient documentation. 

CMS provided the following context: 

While CMS’s improper payment reporting programs are designed to protect the integrity of CMS programs, improper payment measurement is not a measure of fraud, and not all improper payments are attributable to fraud or abuse. Rather, it is important to understand that improper payments are payments that do not meet CMS program payment requirements. They can be overpayments, underpayments, or payments where insufficient information was provided to determine whether a payment was proper. In some programs, improper payments involve a situation where a state or contractor misses an administrative step that had it been properly completed would have resulted in a proper payment.  

The agency said improper payments can result from a variety of circumstances, including: 

• Items or services with no documentation. 

• Items or services with insufficient documentation. 

• Items or services with documentation that does not substantiate the payment. 

• Items or services where the payment was to the right recipient for the right amount, but the payment process did not comply with applicable statutory or regulatory payment requirements.  

CMS says proper payments occur when there is sufficient documentation to support payment in accordance with the program payment requirements. Two examples of proper payments include: 

• Payments where CMS or the state appropriately maintained documentation of an eligibility verification requirement and appropriately determined eligibility based on program eligibility and payment requirements. 

• Payments where sufficient documentation was provided to support program payment requirements. 

More information on CMS’s Improper Payments Measurement Programs can be found here.  

REMSleep’s DeltaWave cleared for broadened indicated use 

BLACKSHEAR, Ga. - REMSleep Holdings, developer of the DeltaWave nasal pillow system, has received expanded 510(k) clearance from the U.S. Food and Drug Administration (FDA). 

The approval, granted Jan. 15, 2026, significantly broadens DeltaWave’s indicated use beyond home-based CPAP therapy to include institutional settings and a wider range of patient populations. 

“Our customers told us they were seeing patients who needed what DeltaWave offers but couldn’t access it because of how narrowly we’d written the original 510(k),” said Thomas Wood, CEO and founder of REMSleep. “Sleep technicians, pulmonologists and respiratory therapists work with these patients every day. When they tell us there’s a clinical need, we listen.” 

REMSleep soft-launched DeltaWave in the fourth quarter of 2025. 

The original 510(k) clearance, granted in 2024, limited DeltaWave to home use with CPAP devices for obstructive sleep apnea (OSA) treatment. The supplemental clearance expands the indicated use in two ways:  

• Settings: DeltaWave is now cleared for use in hospitals, long-term care facilities, rehabilitation centers, sleep laboratories and other institutional environments for single-patient use. Previously restricted to home care settings only.  

• Patient populations and device modalities: The expanded clearance covers use with all non-invasive positive airway devices. This opens DeltaWave to patients with central sleep apnea, complex sleep apnea, congestive heart failure, neuromuscular diseases, and COPD – conditions requiring more modalities and therapy than traditional CPAP. 

The expanded clearance positions REMSleep to execute on three channels:  

• DME/HME providers can now position DeltaWave as a rescue mask for patients failing traditional interfaces across all pressure modalities, not just CPAP. 

• Sleep laboratories and pulmonologists can introduce patients to DeltaWave during diagnostic titration, creating brand preference before patients enter the home care channel. 

• Institutional sales teams can now approach hospital respiratory departments, long-term care facilities, and rehabilitation centers with a device cleared for their patient populations and care environments. 

“The timing is deliberate,” Marshall said. “We spent Q4 building infrastructure – sales force, inventory systems, replacement parts. Now we have the regulatory clearance to support the full strategy. Everything’s aligned.” 

• Related: REMSleep hires Stelzner, prepares for DeltaWave push. 

Consolidated Medical transitions to Rehab Medical 

NEW WINDSOR, N.Y. - Consolidated Medical, a third-generation family business, has announced that it will transition to Rehab Medical, an Indianapolis-based provider of custom mobility solutions. 

Doug Crana, Consolidated Medical’s CEO and president, will remain at the company in an advisory role during the transition. 

“While ownership is changing, the mission remains the same,” Crana stated in a letter to patients, partners and friends. “Customer service has always been our priority and that will remain. I have chosen Rehab Medical as our successor because they respect the history of the Consolidated Medical name and the high standards of care our patients expect.” 

Consolidated Medical was founded 50 years ago when Crana’s father, Richard Crana, combined his experience serving on the U.S.S. Hope in WWII with his father’s “Master Cobbler” lineage. Over the years, the company grew from a local business to a leader in the complex rehab technology industry. 

In his letter, Crana thanked his current team: Dianne Bruschetti, office manager; Mike Ehman, ATP, rehab technician; Jessica Vasquez, assistant office manager; Brandon Miller, technician; and Marri Cruz-Rosas. 

“This journey would not have been possible without them,” Crana stated. “They are the foundation for what Consolidated Medical is today, and I look forward to seeing the great things they will accomplish as part of the Rehab Medical team.” 

Rehab Medical was named HME Provider of the Year in 2024. The company celebrated its 20th year in business in 2025. 

SleepRes names Eric Pauls as chief commercial officer 

MURFREESBORO, Tenn. - SleepRes has named Eric Pauls as its chief commercial officer. In a LinkedIn post, the company says Pauls brings deep leadership experience across commercialization, sales and customer strategy within the health care and medtech space. “Throughout his career, he has built and scaled high-performing commercial teams, led go-to-market strategy and driven sustainable growth across complex, highly regulated markets,” the company stated. Pauls was previously vice president of sales for North America for Inogen. Before that he was senior vice president of sales for Tactile Medical. In his role as chief commercial officer of SleepRes, Pauls will lead the commercialization strategy for Kricket powered by KPAP, helping expand the company’s footprint across the sleep medicine and PAP therapy landscape. SleepRes recently announced Kricket was approved for the treatment of obstructive sleep apnea (OSA) in patients weighing more than 66 pounds.   

Texas Gov. Greg Abbott strengthens fraud efforts 

AUSTIN, Texas – Gov. Greg Abbott has directed the Texas Health and Human Services (HHS) Office of Inspector General and the Texas Health and Human Services Commission (HHSC) to launch investigations into potential Medicaid fraud in Texas to safeguard taxpayer funds, maintain access for eligible Texas and ensure efficient, high-quality health care delivery. “Texas provides critical health care services to children, pregnant women, the elderly and people with disabilities through the state’s Medicaid program," Abbott states in a letter the agencies. "Access to medical services is a key component in supporting these individuals and Medicaid fraud robs taxpayers and impairs their ability to receive necessary healthcare. During my tenure as governor, Texas has policed the Medicaid program and proactively combatted fraud, but we will strengthen our efforts to further protect taxpayers, preserve access for eligible Texans and maintain the integrity of Texas’ Medicaid Program." Given the recent allegations of Medicaid fraud in other states, Abbott has directed HHSC to: 

• Perform additional reviews of Medicaid services recently identified by the Trump Administration as susceptible to higher incidences of fraud and adjust OIG resources to investigate those suspected of fraudulent activity that are not already under review; 

• Ensure that all Medicaid managed care organizations (MCO) have fully staffed Special Investigations Units (SIUs) and are completing mandatory investigative activities, as required by law, to root out fraud; 

• Provide additional training to the MCO SIUs to enhance their capacity to prevent, detect, and eliminate fraud, waste, and abuse in the Medicaid program; 

• Perform additional targeted reviews of MCO policies for the Medicaid services most susceptible to fraud, waste and abuse; 

• Complete a targeted utilization review of autism services and provide a report in June 2026; and 

• Highlight the availability of the OIG online fraud reporting portal and hotline to allow Texans to report potential instances of fraud in the Texas Medicaid program. 

Read the governor's letter here. 

Cardinal Health updates guidance 

DUBLIN, Ohio – Cardinal Health has updated its financial outlook for fiscal year 2026 non-GAAP diluted earnings per share (EPS) to at least $10 from its prior guidance range of $9.65 to $9.85. This increased outlook is driven by strong performance and execution across the company’s five operating segments, the company says. "Our team's execution against our strategic growth plan continues to deliver meaningful results, and as a demonstration of our confidence and momentum, we are pleased to again raise our expectations for fiscal year 2026," said Jason Hollar, CEO of Cardinal Health. The company now also anticipates more than $50 billion of Specialty revenues in fiscal year 2026, representing a 16% compounded annual growth rate (CAGR) over three years. It also highlighted the recent launch by its at-Home Solutions business of the ContinuCare Pathway program. 

F&P Healthcare names new board member 

AUCKLAND, New Zealand – Fisher & Paykel Healthcare has appointed Anna Curzon to the board of directors to fill a vacancy following the retirement of Pip Greenwood. She will join the board as a non-executive, independent director on Feb. 1, 2026. “Fisher & Paykel Healthcare is a leading med-tech company operating on the world stage, and it’s a privilege to join the board,” Curzon said. “I’m excited to contribute to a business that plays such a meaningful role in improving care and outcomes for millions of patients globally.” Currently, Curzon is a director of Gallagher Holdings Limited, Kiwibank and Jade Software Corp. and chairs the board of Atomic.io. Over her 25-year career, Curzon has served as managing director NZ, chief partner officer, and chief product officer at Xero, and she has held leadership or advisory roles with several other technology companies. 

CMS announces new site visit contractors 

WASHINGTON – The Centers for Medicare & Medicaid Services (CMS) has announced that two new site verification service contractors started conducting visits Jan. 3, 2026: 

• East: Arch Systems 

• West: Signature Consulting Group 

Until Feb. 14, 2026, outgoing contractors may continue performing site visits: 

• East: Palmetto GBA and its subcontractors (Overland Solutions, an affiliate of EXL; Information Discovery Services; Compliance Review; and National Creditors Connection. 

• West: Deloitte Consulting and its subcontractors (Nationwide Management Services, CSI Companies, Arthur Lawrence Management; and Computer Evidence Specialists). 

CMS conducts authorized enrollment site visits to verify operational status. Site visit inspectors carry a photo ID and agency-issued letters of authorization that can be reviewed but cannot be retained or copied. 

Resmed names new chief strategy officer 

SAN DIEGO – Resmed has announced that Kylie Canaday has been appointed chief strategy officer, officially stepping into the role on Jan. 16. “With over 15 years at Resmed, Kylie’s deep institutional knowledge, proven leadership and strategic and financial expertise make her exceptionally well-suited to guide our next chapter,” the company stated in a LinkedIn post. Canaday was previously vice president, financial planning and analysis for Resmed. In the post, the company also thanked Hemanth Reddy, who will leave after 12 years. Reddy, Resmed says, helped shape its 2020, 2025 and 2030 strategies and strengthened its culture through thoughtful leadership. “We wish Hemanth every success ahead and congratulate Kylie on her new role,” the company stated.