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In brief: Palladium invests in DME Express, CMS adopts e-standards, MFCU racks up cases

In brief: Palladium invests in DME Express, CMS adopts e-standards, MFCU racks up cases

NEW YORK and THE WOODLANDS, Texas – Palladium Equity Partners has announced an agreement to acquire a majority equity interest in DME Express, a provider of durable medical equipment (DME) serving hospice providers across the U.S., from WayPoint Capital Partners, which will maintain a minority equity interest.

Palladium, which has more than $3 billion in assets under management, expects to partner with CEO Mark Borneleit and his founding team to continue to lead the business.

"DME Express represents an exciting opportunity to partner with an experienced founder-led management team in a specialized health care services segment that benefits from demographic tailwinds," said Rafa Ortiz, head of services at Palladium.

DME Express currently serves hospices and patients in nine states through a network of more than 70 warehouse locations. It offers a broad range of products, including beds and respiratory and mobility equipment, delivered under recurring per-patient-day contractual agreements.

DME Express would be Palladium’s second investment in the hospice industry and the second platform investment by Palladium Equity Partners VI, LP.

"Their prior experience in the hospice industry and working with founders seeking to scale their businesses makes them a strong partner to achieve our next phase of growth,” said Borneleit, founder and CEO of DME Express. “We look forward to collaborating together after the closing to expand our geographic footprint, enhance our service capabilities, and pursue strategic acquisitions to better serve hospice providers and the patients they support."

Cain Brothers, a division of KeyBanc Capital Markets and Holland & Knight served as financial and legal advisors, respectively, to DME Express. Edgemont Partners and Morrison & Foerster served as financial and legal advisors, respectively, to Palladium.

Terms of the investment were not disclosed.

New CMS final rule adopts national standards for electronic claims attachments

Rule also adopts standards for electronic signatures

WASHINGTON – The Centers for Medicare & Medicaid Services (CMS) has announced a final rule that it says will save the health care industry about $781 million annually by establishing national standards for the electronic exchange of clinical documentation used to support health claims.

The “Administrative Simplification; Adoption of Standards for Health Care Claims Attachment Transactions and Electronic Signatures Final Rule” also adopts standards for electronic signatures to ensure secure, authenticated transmission of this information.

“The 1980s called, and they want their fax machines back,” said CMS Administrator Dr. Mehmet Oz. “The futuristic medical breakthroughs we’ve achieved, like augmented reality glasses that give surgeons X-ray vision, shouldn’t have to coexist with administrative systems that often lag decades behind. This new rule will modernize American health care by standardizing electronic claims attachments and enabling secure electronic signatures. Because every minute providers save on paperwork is another minute they can spend caring for patients.”

CMS says the rule is effective on May 26, 2026 (60 days after publication in the Federal Register), and covered entities must comply by May 26, 2028 (24 months after the effective date).

The agency says the standards adopted in the rule apply to Health Insurance Portability and Accountability Act (HIPAA)-covered entities, including health plans, healthcare clearinghouses, and healthcare providers that conduct electronic transactions.

Historically, CMS says providers have relied on outdated manual methods to submit additional claims-related documentation requested by health plans, including medical records, X-rays, clinical notes, telemedicine visit documentation and laboratory results – all of which cause delays and unnecessary costs. It says the new standards establish a consistent, easy-to-use electronic framework for transmitting this documentation, improving efficiency across the entire health care system.

Federal Trade Commission launches Healthcare Task Force

WASHINGTON – Federal Trade Commission (FTC) Chairman Andrew N. Ferguson has directed the agency’s staff to form a Healthcare Task Force that will engage in a coordinated, integrated approach to health care enforcement and advocacy to protect American patients, health care works and taxpayers. In a new memo, he directed the FTC’s Bureaus of Competition, Consumer Protection and Economics, as well as the Office of Policy Planning and Office of Technology, to form the task force to

  • Lead targeted enforcement and advocacy initiatives focused on key priorities;
  • Devise coordinated agency-wide strategies on investigations;
  • Take a proactive and strategic approach to identifying amicus and statement of interest opportunities; and
  • Identify emerging issues and new priority areas for enforcement and advocacy.

The task force will also seek to expand its membership to include other agencies and law enforcement partners, including the Department of Health and Human Services and the Department of Justice. The FTC says the task force is its latest action to “create a more competitive, innovative, affordable and higher quality health care system” as directed by President Trump.

MFCUs rack up nearly $2B in criminal and civil cases

WASHINGTON – The Medicaid Fraud Control Units (MFCUs) recovered $4.64 for every dollar spent by states and the federal government in fiscal year 2025, according to an annual report. Other highlights from the report:

  • MFCU combined recoveries from criminal and civil cases totaled almost $2 billion. Criminal recoveries from convictions totaled $1.3 billion and civil recoveries totaled $706 million.
  • MFCUs also reported 674 civil settlements and judgments for FY 2025. Pharmaceutical manufacturers accounted for more civil settlements and judgments than any other provider type. MFCUs reported 1,185 convictions. MFCU cases resulted in 856 convictions for fraud and 329 convictions for patient abuse or neglect. Significantly more convictions for fraud involved personal care services attendants than any other provider type.
  • MFCU convictions led to OIG exclusions of 900 individuals and entities from federal health care programs, broadening the impact of MFCU convictions. For FY 2025, MFCUs reported receiving a total of 5,991 fraud referrals from managed care entities.

This year’s report highlights case outcomes and other data trends related to investigations and prosecutions by 53 MFCUs.

Permobil supports accessible workplaces

LEBANON, Tenn. – Permobil has released the second edition of its Workplace Accessibility Guide to help employers, architects, facility planners and organizations create work environments where it says everyone can thrive.

This year’s significantly expanded guide introduces broader global perspectives, deeper practical guidance and even more firsthand experiences from wheelchair users around the world.

“Accessibility is not a checklist, it is the foundation of true inclusion,” says Chuck Witkowski, president & CEO of Permobil. “When we design environments that empower rather than merely accommodate, we unlock the full potential of our teams and communities. With this second edition of the guide, we aim to challenge assumptions, spark new conversations, and support organizations in designing workplaces where everyone can thrive.”

New additions to this year’s guide include:

  • Broader global insights: New learnings from workplaces across Europe, the U.S., and Asia show how accessibility challenges vary by region, and how universal design principles can be applied anywhere.
  • More lived experiences: Additional interviews with wheelchair users and inclusion specialists provide real‑world perspectives on what enables, and still limits, full participation.
  • Stronger, more actionable guidance: Updated sections offer clearer recommendations for key areas such as meeting rooms, corridors, shared spaces and restrooms, with a sharper focus on practical design decisions.
  • New implementation examples: The guide highlights accessible solutions such as improved wayfinding, tactile systems, climate‑protected parking and smarter elevator design, offering inspiration for both new builds and renovations.

RESNA broadens format of Assistive Technology journal

WASHINGTON – The Rehabilitation Engineering and Assistive Technology Society of North America (RESNA) will begin accepting submissions in two new formats – assistive technology guidelines and assistive technology notes – for its Assistive Technology journal.

The organization says the formats have been created to strengthen the connection between assistive technology research and clinical practice, ensuring that practitioners, educators and rehabilitation engineers have time access to actionable, evidence-based guidance.

“For too long, a gap has existed between the research informing assistive technology and the practitioners who need that knowledge most,” said Dr. Emma Smith, editor-in-chief of the Assistive Technology journal. “These two new article types are a direct response to our community’s call for practical, evidence-based tools that can be applied in the field.”

According to RESNA:

  • Assistive technology guidelines are rigorous, evidence-based documents that provide formal recommendations for assistive technology practice. These guidelines will be developed with careful attention to levels of evidence and methodological rigor, offering practitioners a trusted foundation for clinical decision-making. Each guideline will reflect the current state of evidence on a given topic and include explicit consideration of evidence quality to ensure transparency and reliability. RESNA’s Board of Directors will approve the topics and the author teams, but will not be involved in scientific review.
  • Assistive Technology Notes are concise, practitioner-focused syntheses of current research evidence written in accessible, lay language. Rather than exhaustive literature reviews, AT Notes offer targeted summaries of evidence on a specific, well-defined practice area, paired with clear recommendations for applying that evidence in real-world AT settings. Citations should be selective and purposeful, guiding readers to the most relevant and impactful sources. To ensure that AT Notes reflect both the evidence base and the practical realities of the field, each submission must include at minimum one active assistive technology practitioner (such as a clinician, educator, or rehabilitation engineer) and one researcher among its authors. Submissions summarizing a single research study or representing the work of only one authorship team or institution will not be considered for publication.

Merits Health writes new chapter for Motivation

FORT MYERS, Fla. – Merits Health Products has restarted production of the Motivation Charitable Trust range of wheelchairs, seating systems, trikes, parts and sports products. Motivation closed its U.K. operation in 2025 due to global pressures, including cuts to international aid.

“It’s a natural fit for Merits,” said Jonathan Cheng, president of Merits Health Products. “Our ambition is always to create the best products in their class, with functionality for people and the services that support them. The Motivation brand fits right in.”

Merits Health Products has been Motivation’s exclusive manufacturing partner for 25 years.

Merits Health Products has also committed to supporting Motivation’s ongoing work in Africa and Asia.

“This range is often the starting point for many of the world’s poorest people to access mobility, education, employment and rights,” Cheng said. “This work is so vital.”

Kalogon names new exec, sets aggressive growth strategy

MELBOURNE, Fla. – Kalogon has appointed Paul Banz as vice president of sales to help the company triple revenue and expand its international footprint into Canada and Europe. The new hire comes on the heels of the company opening a $50 million, 20,000-square-foot production facility in Melbourne, Fla., to support its aggressive growth strategy in both domestic and international markets. "Paul's appointment marks an important milestone in Kalogon's growth trajectory," said Tim Balz, CEO and founder of Kalogon. "We've built incredible momentum over the past year, tripling our medical revenue and opening a state-of-the-art production facility to meet surging demand. Paul's experience scaling sales operations in complex rehab technology, combined with his international market expertise, will be instrumental as we expand our presence in North America, Australia and Europe. This hire also allows our leadership team to sharpen its focus on the core functions that will drive our next phase of growth." Banz brings more than two decades of sales leadership experience in the complex rehab technology (CRT) sector, most recently serving as managing director of export sales group for Etac Group, where he oversaw international sales for multiple brands, including Ki Mobility, Axiom, Star, Hovertech, MoLift, R82, Immedia and Etac's wheelchair, bathroom products and ADL lines. Throughout his career, he has built and scaled sales organizations and product management at leading mobility companies, including BSN Medical and Sunrise Medical.

LivaNova receives FDA premarket approval for CPAP alternative

LONDON – LivaNova has announced that the U.S. Food and Drug Administration (FDA) has granted premarket approval (PMA) for the aura6000 System for the treatment of adult patients with moderate to severe obstructive sleep apnea (OSA). The system uses proximal hypoglossal nerve stimulation (p-HGNS), a differentiated neurostimulation modality, to treat OSA in patients with an apnea-hypopnea index (AHI) between 15 and 65 and who have failed, do not tolerate or are ineligible for first-line therapies, such as positive airway pressure (PAP). “FDA approval of the aura6000 marks a transformative moment for LivaNova and represents a major step forward for patients struggling with inadequately treated OSA,” said Ahmet Tezel, Ph.D., chief innovation officer for LivaNova. “Our p-HGNS therapy underwent a rigorous evaluation for safety and efficacy in the OSPREY randomized controlled trial and delivered clinically significant responses and sustained improvements over time. Now, with FDA approval secured, we are advancing the device toward an even more sophisticated, next-generation system for patients and, ultimately, commercialization.” Building on FDA PMA approval, LivaNova is continuing to prepare its next-generation OSA device for a PMA supplement application to the FDA. The FDA PMA approval is supported by data from OSPREY, LivaNova’s prospective, multi-center, randomized controlled trial. As previously announced in November 2024, OSPREY met its primary endpoints following six months of p-HGNS therapy, with study data demonstrating clinically significant reductions in AHI and oxygen desaturation index (ODI), in addition to several patient-reported outcomes relevant to sleep disturbance.

Philips proposes adding board members, reappointing Jakobs

AMSTERDAM – Ahead of its annual general meeting of shareholders on May 8, Royal Philips has proposed appointing John DeFord as a new member of the Supervisory Board. DeFord currently serves as chairman and CEO of Samothrace Medical Innovations; previously, he was the chief technology officer at Becton Dickinson. The company is also proposing the reappointment of Paul Stoffels, Herna Verhagen and Sanjay Poonen as members of the board. Marc Harrison, whose second term will expire at the end of this year’s meeting, will step down from the board. “On behalf of the Supervisory Board and the Board of Management, I would like to express our sincere gratitude to Marc Harrison for his valuable counsel and contributions over the past eight years,” said Feike Sijbesma, chairman of the Supervisory Board. “We welcome John DeFord to Philips’ Supervisory Board. He is a highly regarded global technology leader with extensive experience as a senior MedTech executive, bringing interventional domain knowledge and deep expertise in innovation, technical, regulatory, quality, and U.S. FDA matters. We recommend the re-appointment of Paul Stoffels, Herna Verhagen and Sanjay Poonen, whose continued service and with their exceptional expertise will further strengthen the Supervisory Board. We are grateful for their ongoing commitment and contributions.” As previously announced in February, Philips has also proposed reappointing Roy Jakobs as president/CEO and chairman, as well as a member of the Board of Management.

Man pleads guilty to making false statements in DME, genetic testing scheme

BOSTON – A Florida-based doctor has pleaded guilty in federal court in Boston to making false statements in connection with a multi-million-dollar health care fraud scheme involving medically unnecessary genetic testing and durable medical equipment (DME), according to the U.S. Attorney’s Office for the District of Massachusetts. Between February 2020 and June 2020, Simon Grinshteyn, 52, worked with a purported telemedicine company to sign medical documentation, including doctor orders, for medically unnecessary genetic testing and DME. The medical records and doctor orders Grinshteyn received and signed were pre-populated and made it appear that Grinshteyn was providing legitimate consultations to the Medicare beneficiaries and had conducted examinations of the beneficiaries and/or would provide further medical care to them. Grinshteyn generally did not contact the beneficiaries himself and had no provider-patient relationship with the beneficiaries. DME suppliers and laboratories ultimately submitted claims to Medicare for these signed orders. As a result of Grinshteyn’s participation in this scheme, Medicare paid more than $3.1 million in claims for DME and genetic testing that were based on false documentation. The charge of making false statements relating to health care matters provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. U.S. District Court Judge Angel Kelley scheduled sentencing for June 24, 2026.

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