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In brief: ResMed shows ‘strength,’ Apria’s ‘ahead,’ CMS provides bid comparison

In brief: ResMed shows ‘strength,’ Apria’s ‘ahead,’ CMS provides bid comparison

SAN DIEGO – ResMed reported revenue increased 14% to $876.1 million for the fourth quarter of 2021 compared to the same period last year. Net income was $195.1 million vs. $177.8 million. 

The company reported revenue increased 8% to $3.2 billion for fiscal year 2021 compared to the previous year. Net income was $474.5 million vs. $621.7 million. 

“Our fourth quarter and full-year fiscal year 2021 results continue to demonstrate the strength and resiliency of our business,” said Mick Farrell, ResMed’s CEO. “During the quarter, we saw the ongoing recovery of core sleep apnea and COPD patient flow across our business, as health care systems continue to adopt new models of patient care. We faced some headwinds this quarter, as we annualized the $125 million in COVID-related ventilator sales from this period in 2020, and we saw some tailwinds from a competitor’s major quality issue that was announced during the quarter. The net result was strong revenue growth of 10% in the June quarter.” 

ResMed reported revenue in the U.S., Canada and Latin America, excluding software as a service, grew 18%, driven by increased demand for sleep devices and masks, including the recovery of core sleep patient flow that was previously impacted by COVID-19, and increased demand, following a recent product recall by one of our competitors, partially offset by decreased COVID-19 related demand for ventilators. 

The company reported revenue for software as a service grew 5%, due to continued growth in resupply service offerings and stabilizing patient flow in out-of-hospital care settings. 

Apria results ‘ahead of expectations’ 

INDIANAPOLIS – Apria Healthcare reported net revenue of $286.3 million for the second quarter of 2021, up 6.4% compared to the same quarter in 2020. 

It reported net income of $20.6 million, up 153.1%. Adjusted EBITDA was $64.4 million, up 15.5%; and adjusted EBITDA less patient equipment capex was $44.1 million, up 2.2%. 

“We delivered another strong quarter as our second quarter 2021 financial results were ahead of our expectations on all three of our key metrics, achieving organic net revenue growth of over 6% as compared to the prior year quarter,” said Dan Starck, CEO.  

Apria also announced it has acquired Airway Breathing Co., a provider of respiratory care services, sleep equipment and supplies, and durable medical equipment.  

“This acquisition enhances our presence in some attractive markets in Virginia and strengthens our relationships with the local health care systems,” said Starck. “We continue to have a robust active pipeline and we expect to see more strategic M&A opportunities throughout the remainder of the year.” 

Apria increased its full year guidance to net revenue of $1.12 billion to $1.15 billion, up from $1.12 billion to $1.14 billion; and adjusted EBITDA of $221 million to $231 million, up from $207 million to $216 million. 

CMS provides bid comparisons 

WASHINGTON – CMS on Aug. 5 published another batch of data on Round 2021, this time comparing information from that round to previous rounds of the program. 

The agency provides data for each round for the following categories: 

  • product categories bid 
  • competitive bidding areas bid 
  • competitions bid 
  • bidders eligible to evaluate 
  • bids eligible to evaluate 
  • product categories bid and implemented 
  • competitive bidding areas bid and implemented 
  • competitions bid and implemented 

For example, there were 49,128 bids eligible to evaluate in Round 2021 compared to 32,139 in the Round 2 re-compete and 3,194 in Round 1. 

In May, CMS published information on the number of eligible bids for Round 2021, among other data. 

In January, the agency published a report on the pivotal bids for the product categories included in that round of the program. 

Arriva settles False Claims allegations for $160M 

NASHVILLE, Tenn. – Arriva Medical and its parent company, Alere, have agreed to pay $160 million to settle allegations they violated the False Claims Act. 

The federal government alleged that, from April 2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them free or no-cost glucometers and by routinely waiving, or not collecting, co-payments for meters and diabetes testing supplies. Specifically, it alleged that Arriva advertised that glucometers would be “free,” and then during intake calls offered Medicare beneficiaries a “no-cost guarantee,” under which Arriva would provide the meters at no cost if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer. Arriva also allegedly offered and provided existing customers “free” additional meters to induce them to reorder testing supplies from Arriva. 

“Paying illegal inducements to Medicare beneficiaries in the form of free items and routine co-payment waivers can result in overutilization and waste taxpayer funds,” said Brian Boynton, acting assistant attorney general for the Justice Department’s Civil Division. “We will continue to protect the integrity of the Medicare program by pursuing fraudulent claims arising from violations of the Anti-Kickback Statute or other applicable reimbursement requirements.”  

In 2019, two former Arriva executives, David Wallace and Timothy Stocksdale, agreed to pay $500,000 to settle similar allegations. 

Arriva ceased operations in December 2017 after an appeal seeking to reinstate its Medicare billing privileges failed. CMS revoked those privileges in 2016, alleging the provider submitted 211 claims for deceased patients between April 15, 2016, and April 25, 2016. 

Prior to that, Arriva had been the top provider of mail-order diabetes supplies, receiving nearly $120 million in Medicare payments in 2015. 

Arriva and Alere, a Waltham, Mass.-based medical device manufacturer, were acquired by Abbott Laboratories in 2017. 

Viemed: Revenue, vent patient count grow 

LAFAYETTE, La. – Viemed Healthcare reported net revenue of $27.4 for the quarter ended June 30, 2020, a “company record” and an increase of 13% over the same quarter in 2020. 

Of that, $1.1 million was for contact and vaccine tracing services and product sales related to the COVID-19 pandemic.  

Viemed grew its ventilator patient count to 8,103, a 5% increase over the March 31, 2021, ventilator patient count. 

“I am extremely pleased with our company’s ability to grow our active patient count across all of our major product lines during the current quarter,” said Casey Hoyt, CEO. “We have once again posted extremely strong financial results, and our adherence to always putting the patient first continues to drive strong growth trends throughout the country. We continue to see treating respiratory patients in the home as a major growth segment and are seeing new patient on-boardings increase as we continue to navigate through the pandemic.” 

Net income for the quarter totaled $1.6 million, compared to $19.4 million. 

Adjusted EBITDA for the quarter totaled $6.8 million and $12.3 million for the six months ended June 30, 2021. 

Option Care Health has ‘momentum’ going into second half of 2021 

BANNOCKBURN, Ill. – Option Care Health reported net revenue of $860.3 million for the second quarter of 2021, up 16.1% compared to $740.8 million in the second quarter of 2020. 

Gross profit was $199 million, or 23.1% of net revenue, up 19.6% compared to $166.3 million, or 22.4% of revenue. 

“The Option Care Health team delivered a very strong second quarter, while continuing to invest for future growth,” said John Rademacher, CEO. “Most importantly, the team focused on extraordinary patient care as we continue to navigate a dynamic healthcare environment. Based on the momentum established in the first half, the company is positioned very well heading into the second half of 2021.” 

Option Care Health reported adjusted EBITDA was $72.8 million, up 33.3% compared to $54.6 million, and cash on hand was $157.5 million. 

Also during the quarter, Option Care Health completed its acquisition of certain assets of BioCure. 

Kubat HealthCare expands 

OMAHA, Neb. – Kubat HealthCare has acquired Louisville, Neb.-based Blake’s Pharmacy, according to the Fremont Tribune. 

Blake’s Pharmacy will continue to offer a full-service pharmacy out of the same location in Louisville, according to the newspaper, but being part of Kubat HealthCare will give the company’s customers access to respiratory care, specialized compounding, infusion and HME through Kubat’s locations in Nebraska. 

“Our partnership with Kubat HealthCare will only strengthen our service lines and provide the administrative support that we’ve never had before,” Kitran Geise, who bought Blake’s Pharmacy in 2006, told the newspaper. 

Blake’s Pharmacy, which will retain all employees, will eventually hang a new sign that says, “Blake’s Pharmacy, a Kubat HealthCare partner.” 

Kubat HealthCare has also opened a new store in Lincoln, Neb., according to the Lincoln Journal Star. 

Kubat HealthCare specializes in sleep study facilitation, CPAP/BiPAP treatment and compliance monitoring. In addition to Omaha and Lincoln, the company has locations in Fremont, Beatrice and Norfolk, Neb. 

O&P legislation reintroduced in Senate 

WASHINGTON – Sen. Mark Warner, D-Va., on July 29 reintroduced the Medicare Orthotics and Prosthetics Patient-Centered Care Act to improve access to care and combat fraud and abuse.   

Companion legislation was reintroduced on March 18 in the House of Representatives.  

“The American Orthotic and Prosthetic Association, whose over 2,000 members represent both the facilities that treat patients and the manufacturers of orthotic and prosthetic devices, has been advocating for years for Medicare to protect patients’ access to quality O&P clinical care,” said Eve Lee, AOPA executive director. “The bipartisan Medicare O&P Patient-Centered Care Act would do just this, differentiating O&P care from the provision of durable medical equipment supplies, while also protecting patients from fraudulent practices that are costly to the Medicare system.”  

The legislation, S. 2556, would create separate statutory requirements for the provision of orthoses and prostheses to distinguish practitioners from DME suppliers.   

The bill also seeks to: restore the term “minimal self-adjustment” to more clearly define off-the-shelf orthoses; and prohibit the practice of “drop shipping” custom orthoses and prostheses.  

The bill is co-sponsored by Sens. Steve Daines, R-Mont., Tammy Duckworth, D-Ill., Chuck Grassley, R-Iowa, John Cornyn, R-Texas, and Bill Cassidy, R-La.  

The current bills are identical to legislation introduced last year in the House (H.R. 5262) and in 2019 in the Senate (S. 4503). 

Philips recalls certain V60 vents 

AMSTERDAM – Philips has issued a recall for its V60 and V60 Plus ventilators equipped with high-flow therapy software versions 3.00 and 3.10 due to the risk of patients receiving reduced oxygen. The number of such devices recalled in the U.S.: 16,535. V60 and V60 Plus ventilators equipped with high-flow therapy are used to provide patients with breathing assistance at high concentrations of oxygen at a higher flow than typical oxygen therapy. These devices include a design safety mechanism limiting the amount of flow that can be delivered to a patient in situations where the system pressure reaches a default maximum pressure limit, due to a partial obstruction in the breathing circuit. If the issue causing maximum system pressure is not resolved by the health care provider, the ventilator will continue to provide the patient with lower oxygen flow rate and issue a low priority alarm. This could lead to serious adverse events, including death. There have been 61 incidents, 25 injuries and no deaths reported related to this issue. On June 18, Philips sent an “Urgent Field Safety Notice” letter to all affected customers and providing instructions when using the device for high-flow oxygen therapy. The recall for the V60 and V60 Plus vents with high-flow therapy software is separate and unrelated to another recall in June of certain CPAP/BiPAP machines and other vents. 

NRRTS seeks nominations 

LUBBOCK, Texas – NRRTS has put out a call for nominations for its Leadership Award, Distinguished Service Award, Consumer Advocate of the Year and Simon Margolis Fellow. The organization will accept nominations through Sept. 1 and will announce the recipients at the International Seating Symposium, Oct. 27-30 at the David L. Lawrence Convention Center in Pittsburgh. A select committee will determine the recipients. Requirements for the Leadership Award include significant advancement of NRRTS and professional and/or clinical impact on service delivery of rehab technology. Requirements for the Distinguished Service award include distinguished service to NRRTS and impact on furthering the organization’s mission. Requirements for the Consumer Advocate of the Year include advocacy activities and extraordinary accomplishments. Requirements for the Simon Margolis Fellow include long-standing and significant contributions to NRRTS, the complex rehab profession, and the seating and wheeled mobility community. Please send nominations to Weesie Walker, executive director of NRRTS, at [email protected] 

 WellSky enhances social services coordination 

OVERLAND PARK, Kan. – WellSky has entered into a definitive agreement to buy Healthify, a company that connects health care organizations with social services organizations to address social determinants of health. Together, WellSky and Healthify will connect providers across and within communities to identify social needs, search for social services and coordinate care with an accountable network of community partners to improve outcomes and remove social barriers to health and wellness, according to a press release. “With the addition of Healthify, WellSky adds yet another crucial capability to our expansive portfolio and further strengthens our position as the leading technology partner connecting care across acute, post-acute and community organizations,” said Bill Miller, CEO of WellSky. “By leveraging Healthify’s networks of community-based organizations and its interoperable closed-loop referral platform, payers and providers can effectively coordinate care to close gaps, improve outcomes and promote health equity.” As a result of the deal, Healthify’s SDoH referral platform and community networks will be integrated with WellSky’s human and social services network to power improved outcomes, while lowering the overall cost of care. 

Short takes: Invacare, Culpeper 

Invacare has launched its Aviva Storm Rx rear-wheel drive power wheelchair. “We are excited to introduce the next generation of Invacare power mobility products with the Aviva Storm Rx,” said Joost Beltman, senior vice president and general manager, North America. “This launch represents yet another step forward for our end-users, while further differentiating Invacare’s product portfolio.” The Aviva Storm Rx’s features include a flared front end that supports use of the center mount platform for overall turning radius reduction, enables the user’s legs to tuck under the chair up to seven degrees, allows the user to get closer to their environment and facilitates easier stand pivot transfers…Culpeper, Va.-based Culpeper Home Medical has achieved accreditation through the Accreditation Commission for Health Care. “Culpeper Home Medical’s staff worked very hard to achieve this accreditation,” Ronnie Rankin, store owner, told The Star-Exponent. “This accreditation will allow us to serve Medicare beneficiaries at the highest level of care over the next several years.”  Culpeper Home Medical serves central and northern Virginia with hospital beds, walkers, wheelchairs, lift chair recliners, power wheelchairs and scooters, and more. It bills Medicare, Medicaid, managed care organizations and numerous third-party payers. 

Lifeway Mobility expands footprint 

PHILADELPHIA – Lifeway Mobility plans to open several new locations: Lifeway Mobility Baltimore, serving the Baltimore, Md., and Washington, D.C., metro areas, and the Eastern Shore; Lifeway Mobility Charlotte, serving greater Charlotte, N.C., northern South Carolina and surrounding areas; and Lifeway Mobility Columbia, serving greater Columbia and Charleston, S.C., and surrounding areas. "Lifeway's latest expansion into the Mid-Atlantic and Southeast regions cements our position as a top provider in the rapidly growing accessibility solutions market,” said Paul Bergantino, president. “Our local teams’ years of experience, paired with the backing of Lifeway’s core values, will enable even more satisfied customers to live their lives independently in the home they love.” In June, the company received a “significant” investment from Cressey & Company, a health care-focused private equity firm. 

Oventus up over last year 

BRISBANE, Australia – Oventus reported revenue of $223,000 for its fiscal fourth quarter of 2021, an increase of 214% over the same quarter in 2020, but a 30% decrease from the third quarter, which the company attributed to sporadic lockdowns in key markets. Telehealth bookings continue to grow with 507 consultations scheduled in Q4 FY21, up 635% vs. Q4 FY20, and up 25% vs Q3 FY21. Also during the quarter, Oventus completed a restructure to align with current market conditions and reduce overhead costs, and hired John Cox as president and CEO. 

Register now for CRT Virtual Fly-In 

EAST AMHERST, N.Y. – Registration is open for the 2021 CRT Virtual Congressional Fly-In, which takes place Sept. 21 from 9 a.m. to 5 p.m. ET. Once registered, congressional appointments will be scheduled for attendees, who will also be partnered with other attendees from their state. NCART and NRRTS, which are hosting the event jointly, will offer webinars in advance to prep attendees with talking points and helpful tips, and offer an opportunity to practice with state teams. All meetings will be held via Zoom and any needed technical support will be available. For more information or to register: www.crtaccess.com. 

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