In brief:  SOAR Act support, ActivStyle acquisition, Viemed & Inogen results

WASHINGTON – More than 30 patient, health care professional and industry organizations have signed a letter urging lawmakers to cosponsor the Supplemental Oxygen Access Reform (SOAR) Act, which would remove supplemental oxygen from the competitive bidding program.  

“Since 2011, supplemental oxygen has been part of Medicare’s DMEPOS competitive bidding program, resulting in significant decreases in payments for oxygen equipment and supplies,” the letter states. “While this has produced Medicare savings, it has also led to unacceptable barriers for patients who need medically necessary oxygen equipment, supplies and services. Supplemental oxygen is a lifeline for so many people – decreasing mortality, reducing shortness of breath and increasing exercise capacity. No one should struggle to access the oxygen modality that works best for their medical needs and lifestyle, and no one should suffer the pain and fear of struggling to breathe.” 

The letter was signed by AAHomecare, the American Association for Respiratory Care, the Council for Quality Respiratory Care, the COPD Foundation and the American Lung Association, among others. 

The SOAR Act, introduced April 10, is sponsored by Sens. Bill Cassidy, R-La., Mark Warner, D-Va., Amy Klobuchar, D-Minn., and Reps. David Valadao, R-Calif., Julia Brownley, D-Calif., and Adrian Smith, R-Neb. 

The bill would also:  

• Establish an add-on payment rate for respiratory therapy services to the supplemental oxygen rate, including the blended rates for rural and other non-urban areas.  
• Establish and require the use of an electronic template created by CMS to make it easier to prevent fraudulent or abusive claims, clarify patient needs and ensure fair reimbursement.  

Read the letter here. 

Sumitomo expands US presence with acquisition of ActivStyle 

Last year, it bought Vast Medical Holdings, the parent company of Quest 

ST. PAUL, Minn. – Sumitomo Corp. has acquired ActivStyle, a U.S. provider of home medical supplies for patients with chronic conditions.  

Since launching in 1997, ActivStyle has expanded its network of insurers and health care providers, becoming a leading player in the U.S. market with services reaching more than 50,000 patients nationwide. 

"ActivStyle is a great addition to our health care family, and we look forward to leveraging the synergies between our group companies in this space," said Jeremy Yap, general manager at Sumitomo. "With the rising aging population and increasing rates of chronic illness, we see significant opportunity to grow these businesses and support those affected with the important care resources they need." 

Sumitomo entered the U.S. health care market in April 2024 by investing in Vast Medical Holdings, leveraging its expertise in home pharmaceutical services business in Japan and its managed care operations in Southeast Asia. A year later, it increased its stake in Vast Medical Holdings, the parent company of Quest, a provider of home medical equipment, supplies and services for people with diabetes.  

Moving forward, Sumitomo will pursue business synergies through cross-selling of products and services between ActivStyle and Quest. 

The company also plans to pursue further investments, targeting a total investment of $360 million dollars in the U.S. health care market by 2027 and total investment of $700 million dollars and profit of $70 million dollars in the U.S. health care market by 2030. 

• Related: Quest Health gets new backing. 

Viemed sees ‘strong, across-the-board start’ 

LAFAYETTE, La. – Viemed reported net revenue of $59.1 million for the first quarter 2025, an increase of 17% compared to the same quarter in 2024. 

Adjusted EBITDA for the quarter totalled $12.8 million, a 26% increase. 

The company’s ventilator patient count grew to 11,809 as of March 31, 2025, an increase of 13% over March 31, 2024. PAP therapy patient count grew to 22,899 as of March 31, 2025, an increase of 46% over March 31, 2024. 

“We are pleased to see marked improvement in each of our businesses in what has historically been our toughest quarter,” said CEO Casey Hoyt. “The strong, across-the-board start to the year has given us the confidence to tighten our guidance by raising the lower end of our revenue and adjusted EBITDA ranges. This performance is directly attributable to returns we are already seeing from the structure we put in place in 2024 to improve our sales organization and accelerate the hiring of new reps, as well as the leveraging of investments in technology for greater efficiencies. We are ahead of pace on increasing the sales team and expanding into new territories to fuel organic growth.” 

Viemed recently announced it would acquire Lehan’s Medical Equipment for $26 million, a deal that is expected to be finalized in the third quarter. 

Inogen: ‘We are making great progress’ 

GOLETA, Calif. – Inogen reported total revenue of $82.3 million for the first quarter of 2025, a 5.5% increase compared to the same period last year, due to higher demand from international and domestic business-to-business customers. 

The company reported a net loss of $6.2 million compared to a net loss of $14.6 million. 

“Inogen’s strong first quarter financial results underscore our success in driving improved commercial and operational execution,” said Kevin Smith, president and CEO. “We are making great progress and remain committed to positioning the company for sustainable growth and profitability, while creating value for all stakeholders.” 

Other Q1 financial results: 

• Total gross margin was 44.2%, an improvement of 15 basis points compared to 44.1% in the prior-year period, driven primarily by lower warranty expense, partially offset by the impact of channel and customer mix. 
• Total operating expense was $44.0 million, a decrease of 13.1% from $50.6 million in the prior-year period, primarily due to lower consulting expenses. 
• Adjusted EBITDA was a positive $0.04 million compared to negative $7.6 million in the prior-year period. 
• Cash, cash equivalents and restricted cash were $122.5 million as of March 31, 2025, with no debt outstanding. 

For the full year 2025, Inogen continues to expect reported revenue in the range of $352 million to $355 million, reflecting 5% to 6% growth relative to the company’s 2024 revenue, and expects to approach adjusted EBITDA breakeven. 

For the second quarter of 2025, Inogen expects reported revenue in the range of $89 million to $91 million, reflecting flat to approximately 3% growth, relative to the company’s second quarter 2024 revenue. 

Geffert moves up at Trace Medical 

WHITMORE LAKE, Mich. – Trace Medical has named Clint Geffert, who joined the company in 2024, as its COO. “We were extremely fortunate to have Clint join our team last year and are thrilled to have him now lead our operations team as chief operating officer,” said Greg Apostolou, CEO. “His vast industry knowledge and experience align well with the needs of Trace Medical as we expand operations to include national biomedical services and home dialysis.” Previously, Geffert held roles at React Health and at VGM & Associates, where he served as president for eight years. “I’m deeply honored to step into the role of chief operating officer, transitioning from my previous role as chief growth officer at Trace Medical,” said Geffert. “My objective is to align our operational strategy with the needs of health care providers, ensuring timely access to essential equipment while maintaining the growth we have collectively achieved. Customer collaboration and teamwork will remain pivotal in guiding the organization toward even greater accomplishments.” 

Study: DME use adds cost burden 

INDIANAPOLIS, Ind. – Americans who rely on DME such as oxygen concentrators and CPAP devices face annual electricity increases ranging from $120 to more than $700, depending on device type, usage frequency and state electricity prices, according to a new study from researchers from Indiana University, Regenstrief Institute, University of Pennsylvania and Yale University. The research team, which focused on 11 of the most common types of DME used in the United States, correlates that usage costs can increase a household's monthly energy bill by up to 40%– and even higher in states with elevated electricity rates, such as Hawaii, California and Massachusetts. “Because we know health and wealth generally go hand in hand, people whose health is very compromised tend also to face strained financial circumstances,” said Kosali Simon, PhD, M.A., a Regenstrief research scientist and IU professor. “This is not a small expense for them. Patients are plugging in DME without knowing how much it will cost, but they may be in high need of that device. When we look at these numbers, depending on the state, cost increases could be burdensome.” Electricity costs could limit patient use of necessary in-home medical devices. While some Medicaid and Medicare programs cover expenses related to social drivers of health, they do not currently cover the electricity costs of DME. Addressing these hidden costs through insurance coverage could reduce financial stress, say researchers. 

VGM releases second playbook of 2025 

WATERLOO, Iowa — VGM & Associates has released “VGM Playbook: Cost Management Trends, Strategies, and Solutions,” to help VGM members optimize health care operations and manage costs effectively. As the second playbook of 2025, this resource offers valuable perspectives and strategies from various industry experts focused on managing costs, improving operational efficiency and navigating the complexities of the health care industry. Topics include an analysis of health care costs and trends, best practices for operational efficiency, compliance and regulation insights, industry-specific challenges, strategies for retaining talent and reducing turnover, and a member’s take on balancing costs and growth. “VGM & Associates understands the pressures that our members face throughout this industry, especially when it comes to the cost of doing business,” said Mandi Rodgers, VP of marketing, VGM & Associates. “It is our hope that this playbook provides a roadmap for best practices in managing costs effectively, ensuring they are able to continue serving customers and providing the best possible care while effectively managing their operations and growing their businesses.” Members can download their copy at vgm.com/playbook or by logging in to the VGM members-only portal and downloading it from the Playbook tab. In April, VGM released a cybersecurity playbook. 

AAHomecare welcomes Analytix Solutions as Bronze Corporate Partner 

WASHINGTON – Analytix Solutions is now a Bronze Corporate Partner with AAHomecare. By aligning with AAHomecare, Analytix Solutions strengthens its commitment to enhancing compliance frameworks, organizing reimbursement processes and supporting home care providers in delivering patient-centered care, the company says. “The additional resources and direct involvement that our Corporate Partners provide allows us to be more impactful on legislative regulatory and payer initiatives and bring more and bring home more policy wins for HME,” said Tom Ryan, AAHomecare president & CEO. “I'm excited to welcome Analytix Solutions to the growing list of companies that are making a major investment in advocacy efforts that will benefit our entire industry and millions of patients and caregivers we support.” Boston-based Analytix Solutions specializes in health care management and revenue cycle solutions, helping HME providers, physicians and dental practitioners enhance their operational efficiency, ensure compliance and improve patient care, the company says. 

RESNA seeks comments on new standard 

WASHINGTON – RESNA has announced that public comments will open May 9 for the final draft standard, “RESNA ED-1 Standard for Evacuation Devices - Volume 1: Emergency Stair Travel Devices used by Individuals with Disabilities,” developed by its Standards Committee. This standard covers the terminology, description, performance, inspection and maintenance of devices whose primary purpose is the travel of individuals with disabilities over stair and horizontal surfaces during building evacuations. This standard does not cover devices whose purpose is the travel of individuals with disabilities during routine travel on stairs. This standard includes requirements and test methods for determining emergency stair travel device performance. It also includes requirements for the disclosure of the test results. If you would like to review this draft standard and provide comments, please email RESNA at technicalstandards@resna.org.