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In brief: Stolz presides, Rotech pauses, AdaptHealth grows 

In brief: Stolz presides, Rotech pauses, AdaptHealth grows 

WATERLOO, Iowa – VGM Group has named Jeremy Stolz president of VGM & Associates, after serving as interim president since June. 

Stolz will also continue in his role as president of VGM Fulfillment and as a member of VGM’s senior leadership team. 

“Jeremy is an influential leader in the home medical equipment industry,” said Mike Mallaro, CEO of VGM Group. “He understands both the challenges members of the industry face. as well as the opportunities that lie ahead for them. Our entire VGM team is excited about Jeremy’s promotion and stands firmly beside him as he leads our group into the future.”  

Stolz began his VGM career in 2003 at VGM & Associates. In 2009, he was tapped to lead VGM’s venture to help HME companies enhance their CPAP resupply business. That venture became VGM Fulfillment and later expanded beyond CPAP interfaces to provide an array of specialized health care products directly to user homes. Stolz was promoted to president of VGM Fulfillment in 2017. 

Under Stolz’s leadership, VGM Fulfillment has grown from a small warehouse space using manual processes to four warehouses across the nation using state-of-the-art technology, with 250 employee owners. 

“Under Jeremy's leadership, VGM Fulfillment has grown significantly, serving even more customers and expanding the scope of services offered,” Mallaro said. “His ability to build an outstanding team and find innovative and collaborative solutions, and his penchant to find win-win outcomes have made VGM one of the nation’s fastest-growing distributors of health care products direct to the home. At VGM & Associates, he will apply these skills and his experience to lead these communities and further evolve our offerings to meet the needs of the home medical equipment industry members and partners we serve.” 

Rotech waits for ‘market changes 

WASHINGTON – Rotech Healthcare has paused its plans to go public. 

The company filed for an initial public offering of up to $100 million in July 2021, with plans to list on the Nasdaq under the symbol ROTK. 

“(We’re) just timed out for now,” said President and CEO Tim Pigg in an email to HME News. “We have not updated but do plan to continue to update once the market changes.” 

Rotech’s filing was declared abandoned on Aug. 3, according to the U.S. Securities and Exchange Commission. 

When it becomes public, Rotech will join a few other larger HME providers on the Nasdaq, including AdaptHealth and Apria Healthcare (now part of Owens & Minor). 

Rotech says it offers a comprehensive range of home medical equipment and products and services across five core business lines: oxygen, ventilators, sleep therapy, wound care and DME. Its payer mix includes commercial insurers, Medicare, Medicaid, the VA and private individuals. 

As of March 31, 2021, the company says it served more than 600,000 active patients across more than 300 service locations in 45 states.  

AdaptHealth: ‘We continue to meet expectations’ 

PLYMOUTH MEETING, Pa. – AdaptHealth reported net revenues of $727.6 million for the second quarter of 2022, a 17.9% increase compared to the same period of 2021. 

The company says sleep categories showed sequential growth, as the supply of CPAP machines continues to improve relative to recent quarters. 

“During the quarter we have seen continued resilience in our HME and sleep product lines as CPAP patient set-ups remain at or near record levels resulting in rental census up 16% from February levels, and our diabetes product line continues to post double-digit growth,” said Steve Griggs, CEO. “AdaptHealth continues to meet expectations for growth and profitability and drive operating leverage, even in the face of considerable inflation, fuel, freight and labor market pressures.” 

Other financial results: 

  • Net income attributable to AdaptHealth Corp. was $14 million, or $0.09 per diluted share, compared to $79.1 million, or $0.12 per diluted share, in the second quarter of 2021. 
  • Adjusted EBITDA was $150 million, compared to $147.4 million in the second quarter of 2021, an increase of 1.8%. On a sequential basis, adjusted EBITDA margin increased 110 basis points to 20.6%, as the company continues to manage well through the inflationary environment and supply chain challenges. 
  • Cash flow from operations was $103.5 million, compared to $129.2 million in the second quarter of 2021. 

AdaptHealth is maintaining its previously issued financial guidance for fiscal year 2022, as follows: 

  • Net revenues of $2.840 billion to $3.040 billion; 
  • Adjusted EBITDA of $615 million to $675 million; and 
  • Total capital expenditures representing 9-11% of net revenue. 

Mount Sinai, Contessa create Mount Sinai at Home 

NEW YORK – Mount Sinai Health System and Contessa, a home-based care provider, have combined Mount Sinai South Nassau’s home health agency into their existing joint venture, creating a home-based care continuum. 

The new combination offers home health, hospitalization at home, rehab at home (in lieu of care at a skilled nursing facility) and palliative care at home. 

“This new initiative accelerates our strategic goal of delivering a continuum of home-based care to more Mount Sinai patients,” said Aaron Stein, COO at Contessa, an Amedisys company. “Mount Sinai at Home provides a strong offering to patients, providers and health plans. Together, we are truly changing health care by rendering care where patients want it the most, their homes.” 

The home health agency will now be called Mount Sinai at Home. It currently treats nearly 3,000 patients each year with a 96% patient satisfaction rate and maintains a 4-star quality rating from CMS. 

Mount Sinai and Contessa first partnered in 2017 to provide hospitalization at home and expanded in 2021 to offer palliative care at home. 

Oxygen sign-on letter heads to CMS 

WASHINGTON – Twenty two members of the House of Representatives have asked CMS to streamline documentation for home oxygen therapy, AAHomecare reports. A sign-on letter spearheaded by Reps. Terri Sewell, D-Ala., and Larry Bucshon, R-Ind., requests that CMS: “Use the opportunity of expanding the current National Coverage Determination for oxygen to establish a clear set of criteria to support medical necessity and instruct the contractors to rely solely on the Standard Written Order as they are doing during the pandemic or to include with that order a completed template to support medical necessity without having to review individual clinician’s medical records.” AAHomecare credited the Council for Quality Respiratory Care for leading the effort to develop the letter with Reps. Sewell and Bucshon. Industry stakeholders have argued that the new NCD, which eliminates the CMN requirement for home oxygen, provides an opening to revisit standardized clinical data elements. 

Quipt Home Medical converts debt 

CINCINNATI – Quit Home Medical has exercised its right under the debenture indenture dated March 7, 2019, which governs all of the company’s 8% unsecured convertible debentures issued on that date, to convert all of the principle amount outstanding of the remaining debentures on Sept. 8, 2022, into common shares of the company. “The conversion of this debenture is an exciting milestone for the company, as we continue to execute on our aggressive growth strategy,” said Greg Crawford, Chairman and CEO of Quipt. “The conversion of the debentures further ‎strengthens our balance sheet, eliminates the interest payments ‎ associated with the debentures, and simplifies our debt structure. As we continue to drive each area of the business, the conversion ‎of this convertible debenture is another testament to our positive momentum.” Pursuant to the terms of the indenture, the company may force conversion of the outstanding principal amount (less ‎any tax required by law to be deducted or withheld) of the debentures into common shares at the conversion price of $5.20 per common ‎share, if the volume weighted average trading price of the common shares on the TSX ‎Venture Exchange (the “TSXV”) for 20 consecutive trading days equals or exceeds $6.48. As of close of markets on Aug. 8, 2022, the volume weighted average trading price exceeded $6.48 for a period of 20 consecutive trading days. As a result of the conversion, the estimated remaining total of approximately $9,771,000 (face value) of debentures outstanding will be converted into approximately 1,879,038 common shares, and accrued and unpaid interest (less any required deductions or withholdings) will be paid by the company in cash to the applicable holders of the debentures. 

AAH forms Diabetes Council 

ARLINGTON, Va. – AAHomecare will host the first meeting of its newly formed Diabetes Council in Arlington, Va., in October to bring together key leaders in the market. The association’s board of directors voted in July to establish the council, with Linda Langiotti of CCS Medical as chair and John Pryor of AdaptHealth as vice chair. “The AAHomecare team has established a successful model to deliver measurable results through our councils, and we are already familiar with the issues surrounding continuous glucose monitors and the diabetic market,” notes Tom Ryan, president. “Diabetes companies joining this council will find passionate support, devoted assets, clear goals and tangible results. We’re confident that there is a natural fit for this coalition within our framework.” The purpose of the meeting is to develop goals, including demonstrating the benefits of the DME channel for access and compliance to diabetes device therapy; ensuring distributors have a voice in policy making for coding and coverage criteria; developing strategy for continuing to treat patients on CGM therapy when the public health emergency ends; and addressing taxability of CGM devices on a state-by-state basis. The council will be comprised exclusively of AAHomecare Corporate Partners in the diabetes market. AAHomecare will assist with policy and commercial payer opportunities and provide guidance during meetings. 

Groups set agenda for CRT Awareness Week 

WASHINGTON – As part of CRT Awareness Week next week, Unite4CRT and NRRTS will present a series of panel discussions on Aug. 17 to raise awareness of the importance of ensuring access to complex rehab technology. The series kicks off at 12:45 EST with a welcome message, followed by a presentation on “Navigating the Public School System When You Have a Disability.” Other presentations: “Traveling With My Wheelchair – What Should I Expect?” “You and Your Caregiver” “Family Focus” “The Power of Your Mobility – What is CRT?” and “In the Home Rule: What Does it Mean for Your Mobility Needs?” The series concludes at 7 p.m. EST. You can register for the series here. CRT Awareness Weeks takes place Aug. 15-19. 

Medline sends medical supplies to Kentucky 

NORTHFIELD, Ill. – Medline has sent hundreds of cases of medical supplies to Eastern Kentucky to help with the treatment and care of residents living in the nine counties impacted by recent catastrophic floods. Medline transported the supplies from distribution centers in Jeffersonville, Indiana, and throughout the U.S. to SOS International, a Louisville-based nonprofit organization that is coordinating assistance in the area. “Our teams were able to quickly mobilize to obtain and transport these essential supplies, ensuring their timely delivery to the healthcare professionals and clinics treating and caring for patients during this ongoing crisis,” said Jim Boyle, Medline executive vice president. “We want to thank our partner, SOS International, for their help in identifying the greatest supply needs, and our Medline colleagues for rallying to promptly coordinate, pick and transport these vital supplies.” The 350 cases of supplies included medical triage boxes, bandages, personal protective equipment (PPE), gloves, hand sanitizer and other infection prevention products. SOS International provided Medline with a list of critical supplies and is working with local organizations, including the Kentucky Primary Care Association and Appalachian Regional Healthcare to identify the independent clinics and areas most in need of supplies. In total, Medline has made more than $40,000 in cash and in-kind donations to SOS International to aid Eastern Kentucky. 

KYMESA requests medical equipment 

CAMPBELLSVILLE, Ky. – The Kentucky Medical Equipment Suppliers Association (KMESA) has put out a request to members to assist with medical equipment needs in the wake of disastrous flooding in the state. VGM Government Relations has amplified the request to all providers in all states. KYMESA is looking for assistance with the following DMEPOS items: glucometers, neb machines, neb tubing, digital blood pressure cuffs, pulse oximeters, wheelchairs, canes, walkers, oxygen concentrators, oxygen tubing, diabetic supplies, gloves, bedside commodes and manual can openers. “I will oversee any donations and make sure they are given to the appropriate areas,” said Teresa Lynne Aldridge, executive director. Aldridge can be reached at [email protected] Flooding in Eastern Kentucky has killed at least 37 people and has destroyed or damaged hundreds of homes, according to news reports. 

BOC welcomes two new hires 

OWINGS MILLS, Md. – The Board of Certification/Accreditation (BOC) has added Wil Townsend as operations manager and Meghan Smith as digital marketing manager. As BOC’s operations manager, Townsend is responsible for supporting the direction, strategy and day-to-day business operations for the organization. He also manages key vendor partnerships and ensures effective operational controls and systems are in place. Townsend comes to BOC with more than 25 years of experience in largescale operations management, most recently as facilities manager for Baltimore’s historic Hippodrome Theatre. As BOC’s digital marketing manager, Smith is responsible for implementing the organization’s marketing strategy to improve communication with key stakeholders and customers to elevate brand awareness among target audiences through digital channels. She joins BOC with more than seven years of management and marketing experience. 

Adam Miller to lead OPGA 

WATERLOO, Iowa – The Orthotic and Prosthetic Group of America (OPGA), a division of VGM & Associates, has announced Adam Miller as its new president. Miller most recently served as the director of national accounts for VGM Insurance. “Over the last eight years in my role at VGM Insurance, I have had the privilege to assist many O&P providers with their insurance needs,” Miller said. “As president of OPGA, I am excited to take my passion for providing relentless service and combine it with providing savings and solutions to OPGA members.” OPGA is a network of independent O&P facilities with nearly 1,300 locations. It works with facilities to help them operate more efficiently and increase their profitability. Miller succeeds Todd Eagen who passed away suddenly in June. 

RGK launched in North America 

FRESNO, Calif. – RGK, a range of advanced, made-to-measure manual wheelchairs, is now available through Sunrise Medical North America. RGK, which Sunrise Medical acquired in 2015, has more than 30 world champion ambassadors globally. “I don’t compromise my manual mobility, why would I expect others to?” said Josh Anderson, vice president of business development and a RGK rider. “Good is not good enough. We are committed to making a better product than we are obligated to for the well-being of our customers.” The company is also launching the RGK Genius Program to make sure one of the company’s subject matter experts is present in person or via video conference during evaluation and consultation to assist with measurements and any questions on the product. “Our goal is to build the best product for the rider, while removing the fear of ordering a made-to-measure manual chair,” said Larry Jackson, president of Sunrise Medical North America. 

Belluscura launches Bluetooth-enabled POC 

LONDON and PLANO, Texas – Belluscura has launched its next-generation X-PLOR portable oxygen concentrator (formerly described as X-PLOR CX) with Nomad Health App. Bluetooth capabilities allow patients to connect their X-PLOR to other smart devices, such as their iPhone or Android phone, their Nonin or Masimo pulse oximeters and their Fitbit wearables, helping them to track oxygen use, breathing rates, blood oxygen saturation levels, heart rate, sleep and other important biometric and environmental data. "I am very excited about the launch of the next generation X-PLOR with the Nomad Health App,” said Robert Rauker, CEO of Belluscura. “Our goal is to not only provide cutting edge medical devices, but to also improve patient outcomes with every new product we launch. We believe putting more health and environmental information in the hands of our patients will result in greatly improved long-term patient outcomes." Belluscura believes the next-generation X-PLOR will help the company add more distributors and DME providers to its network.

AdaptHealth joins S&P SmallCap 600 

PLYMOUTH MEETING, Pa. – AdaptHealth replaced Meritor in the S&P SmallCap 600 prior to the opening of trading on Aug. 4. Meritor is being acquired by Cummins, which is listed on the S&P 500, in a deal expected to be completed soon, removing the company from the index. The S&P Dow Jones Indices are the largest global resource for essential index-based concepts, data and research, and home to financial market indicators like the S&P 500 and the Dow Jones Industrial Average. The S&P SmallCap 600 is a stock market index that covers the small-cap range of American stocks using a capitalization-weighted index. To be included, a stock must have a total market capitalization that ranges from $850 million to $3.6 billion. AdaptHealth, which has 757 locations in 47 states, has a market cap of $3.42 billion. 

Majority of consumers own connected health devices 

ADDISON, Texas – Fifty four percent of U.S. Internet households own at least one connected health device and 23% own three or more, according to new consumer data from Parks Associates. Additionally, 57% of consumers find sharing device health data appealing and more than one in three seek care providers who offer this.  “Driven by smart watch adoption, consumers and patients have become used to using devices to collect, transmit and interpret health data,” said Kristen Hanich, director, Broadband and Health Research, Parks Associates. “Remote care in the home relies both on the quality of patient monitoring and on the quality of the insights provided to the care team and family caregivers. The use of predictive analytics and machine learning algorithms in health care turn real-time data into actionable and potentially life-saving insights and diagnostic support.” 

Man arrested at airport for health care fraud pleads guilty 

MIAMI - Ariel Madero Paez, 56, has pleaded guilty in federal court in Ft. Pierce to fraudulently billing Medicare over $2 million for durable medical equipment that was never provided to beneficiaries. According to court records, from November 2021 through May 2022, Always submitted approximately $2.2 million in fraudulent health care claims to Medicare for DME that Always never provided, and that Medicare beneficiaries never requested. As a result, Medicare paid over $1.4 million. After Madero’s arrest on May 6, 2022, at the Miami International Airport, bank accounts for Always and Madero had a sum of more than $500,000 derived from or traceable to the health care fraud. U.S. District Court Judge Donald M. Middlebrooks will sentence Madero on Oct. 5. 

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