In brief: CMS increases MA audits, Quipt receives buyout offer, Medtronic splits diabetes biz 

WASHINGTON – CMS plans to increase its team of medical coders from 40 to about 2,000 by Sept. 1 as part of a significant expansion of its auditing efforts for Medicare Advantage plans. 

These coders will manually verify flagged diagnoses to ensure accuracy, the agency says. 

“We are committed to crushing fraud, waste and abuse across all federal healthcare programs,” said Dr. Mehmet Oz, CMS Administrator. “While the administration values the work that Medicare Advantage plans do, it is time CMS faithfully executes its duty to audit these plans and ensure they are billing the government accurately for the coverage they provide to Medicare patients.” 

Medicare Advantage plans receive risk-adjusted payments based on the diagnoses they submit for enrollees—meaning higher payments for patients with more serious or chronic conditions. To verify the accuracy of these claims, CMS conducts Risk Adjustment Data Validation (RADV) audits to confirm that diagnoses used for payment are supported by medical records. 

Currently, CMS is several years behind in completing these RADV audits. The last significant recovery of MA overpayments occurred following the audit of payment year (PY) 2007, despite federal estimates suggesting MA plans may overbill the government by approximately $17 billion annually.  

In addition to the workforce expansion, CMS will: 

• Deploy advanced systems to efficiently review medical records and flag unsupported diagnoses. 
• Increase its audits from about 60 MA plans a year to all eligible MA plans each year in all newly initiated audits (approximately 550 MA plans). It will also increase from auditing 35 records per health plan per year to between 35 and 200 records per health plan per year in all newly initiated audits based on the size of the health plan. 
• Collaborate with the Department of Health and Human Services Office of Inspector General (HHS-OIG) to recover uncollected overpayments identified in past audits.  

Quipt receives buyout offer 

CINCINNATI — Quipt Home Medical has announced that it has received an unsolicited non-binding and conditional and indicative proposal from Forager Capital Management to acquire 100% of the company’s issued and outstanding common shares for $3.10 per common share. 

Quipt entered into a non-disclosure and standstill agreement with Forager Fund, L.P. and FCM in February. The agreement provides that Forager and its representatives will, for a period of six months after the date of the agreement, not directly or indirectly acquire (or propose or agree to acquire), by purchase or otherwise, any equity securities or assets of Quipt, or rights or options to acquire interests in any of Quipt’s equity securities or assets without prior advance approval in writing by the board of directors of the company. The agreement also provides for customary terms related to the non-disclosure and use of confidential information of Quipt. 

The board did not provide Forager with any prior written approval for a waiver of the confidentiality provision or the standstill provision relating to the issuance of the non-binding proposal. It remains focused on the best long-term interests of the company to drive sustainable value for its shareholders, according to a press release. 

In January, Philotimo Fund, L.P., an entity affiliated with Kanen Wealth Management and David L. Kanen filed notice with the U.S. Securities and Exchange Commission saying it planned to oppose Quipt’s four director candidates to the board and solicit proxies in support of four other director candidates. An agreement with Kanen was announced in March. 

• Related: Quipt on May 13 reported revenue of $57.4 million for the second quarter of 2025 compared to $61.3 million for the same period last year, a 6% decrease.   

Medtronic to split off diabetes biz 

GALWAY, Ireland – Medtronic has announced it intends to separate its diabetes business, which represented 8% of revenue and 4% of segment operating profit in fiscal year 2025, into a new standalone company. 

The new diabetes company will be a leading, scaled direct-to-consumer diabetes business uniquely positioned to commercialize a complete intensive insulin management ecosystem, Medtronic says. 

"This marks a significant milestone in driving both Medtronic and the diabetes business to achieve lasting value for Medtronic, our shareholders, customers and patients," said Geoff Martha, chairman and CEO of Medtronic. "Active portfolio management is an important lever to delivering on our ongoing growth and success, and this decision shifts the Medtronic portfolio to have intense focus on our highest margin growth drivers where we have our strongest core competencies. I'm also excited about what the future holds for the Diabetes business." 

Medtronic says the separation is expected to enable more focused investment into the new diabetes company's pipeline, as well as manufacturing scale and automation, positioning the company for success in Automated Insulin Delivery and Smart MDI, while driving margin expansion over time. 

Que Dallara, current executive vice president and president of Medtronic Diabetes, which comprises 8,000 employees worldwide, will become CEO of the new diabetes company. 

"I'm incredibly grateful to Geoff for his vision and commitment to investing in the diabetes business — we wouldn't be where we are without his unwavering support," said Dallara. "As we embark on this exciting new chapter, we celebrate the tireless efforts and dedication of our teams. Their passion and perseverance have brought us to this pivotal moment. Together, we're poised to transform lives, giving people the freedom to forget diabetes and live their best lives." 

The separation is expected to be completed within 18 months through a series of capital markets transactions, with a preferred path of an initial public offering and subsequent split-off. 

Permobil promotes Witkowski to CEO 

NASHVILLE, Tenn. – Permobil has named Chuck Witkowski, who has served as president of Permobil Americas since 2019, as its CEO effective July 1. 

Witkowski, who also serves as chairman of the board for the Permobil Foundation, will succeed Bengt Thorsson, who is stepping down after seven years as CEO. 

 "Under Chuck's leadership, we have seen tremendous growth in North America, and I am confident that his energy and focus on innovation make him the right person to further develop Permobil,” said Martin Lundstedt, chairman of the board of Permobil.  “At the same time, the board and I would like to extend our gratitude to Bengt Thorsson for his outstanding contributions during his tenure as CEO. Under his leadership, the company has substantially enhanced its profitability by driving growth and improving efficiency, while also broadening its range of products and services.” 

North America is Permobil’s largest market, contributing more than 65% of total revenue. 

Before joining Permobil, Witkowski was founding CEO of Hubble Telemedical, a company he later sold to the medical device firm Hillrom (now part of Baxter), where he continued as vice president and general manager.  

"I am honored by the board’s confidence, and I approach the role of leading Permobil with humility and enthusiasm,” said Witkowski. “Permobil stands as a shining example of Swedish innovation and industrial excellence, having enabled independence for millions of people around the world through technology. Our future is extremely bright, but to realize it we must remain focused, continue to transform and accelerate our pace of innovation.” 

Aeroflow expands lactation services 

ASHEVILLE, N.C. – Aeroflow Health has expanded access to lactation services in 12 states by providing virtual services, such as breastfeeding classes and private lactation consultations, to new mothers at no cost through insurance, including Medicaid.  

These new virtual lactation offerings will now be available for new mothers under Medicaid in Colorado, Virginia, Ohio, Florida, Georgia, Washington D.C., Tennessee, New York, Vermont, Louisiana, North Carolina and Michigan.  

"When we keep members at the center, we don’t just solve problems – we change lives,” said Amanda Minimi, vice president of health solution marketing & operations. “Through relentless advocacy and deep collaboration with our partners across states and health plans, we’ve built something bigger than access, we’ve built a path forward. Our reach now includes approximately half of all members living in maternal health deserts – communities where care is limited and voices often go unheard. That’s why we’re proud to partner with plans that recognize the power of innovation to close these gaps."  

Aeroflow has been partnering with Medicaid plans to serve as a member engagement access point with a reach of more than 40% of all births in the United States by providing breast pumps and lactation services.  

Mothers will be able to access the new offerings through Aeroflow Heath’s maternal division, Aeroflow Breastpumps, which also features a mix of live online classes, private appointments and a catalog of resources and clinical information to support mothers. 

GoodRx offers direct contracting to indie pharmacies 

SANTA MONICA, Calif. – GoodRx in June will launch GoodRx Community Link, a new offering that will enable locally owned and operated pharmacies to directly contract with GoodRx on pricing and manage their participation in the company’s Integrated Savings Programs. “Direct contracts leverage cost-plus models to provide independent pharmacies with more direct control over pricing and favorable margins,” the company stated. “GoodRx is committed to helping independent pharmacies better manage pricing directly with GoodRx while continuing to provide consumers with affordable prices on their medications.” GoodRx is hosting webinars on June 3 and June 4 with Aaron Crittenden, president of Rx Marketplace at GoodRx, for independent community pharmacies to learn more. The company says its platform connects consumers, health care professionals, payers, pharmacy benefit managers, pharma manufacturers and retail consumers to make saving on medications easier. Since 2011, GoodRx says its platform, which is used by nearly 30 million consumers and more than 1 million health care professionals annually, has helped save more than $85 billion on the cost of medications. 

• Related: GoodRx hits milestone for diabetes & Belluscura increases visibility with GoodRx. 

NCPA supports provision in budget bill 

ALEXANDRIA, Va. – The National Community Pharmacists Association applauds the passage of a budget reconciliation bill in the House of Representatives that includes language that would eliminate pharmacy benefit manager spread pricing. It also would require transparent and fair reimbursement (Medicaid fee-for-service) in all state Medicaid managed care programs. “While doing nothing to reduce the cost of drugs for Medicaid beneficiaries, spread pricing has been costing federal and state taxpayers hundreds of millions of dollars every year,” said NCPA CEO B. Douglas Hoey, pharmacist. “Through low and underwater reimbursements, PBMs have been systematically squeezing local pharmacies and helping drive them out of business. It’s egregious. Moving to a fairer pharmacy reimbursement system that ends spread pricing and requires transparent, predictable reimbursements to pharmacies is a step in the right direction. We urge the Senate to swiftly pass these provisions and President Trump to sign them into law.” The NCPA says spread pricing is what happens when PBMs charge insurance plans like Medicaid one price for prescription medications, reimburse pharmacies that dispense them a much lower price, and then keep a big chunk of the difference (the spread) for themselves. 

TBO promotes Mae Padaoan 

LAS VEGAS – Tactical Back Office has promoted Mae Padaoan, who built the company’s comprehensive training program from the ground up, to training director. The company says Padaoan brings a distinctive blend of technical precision and interpersonal leadership to this expanded role. "Mae's promotion represents both recognition and strategic vision," said Todd Usher, CEO of TBO. "Her ability to develop talent has transformed our onboarding process and team retention. As training director, she'll enhance our ability to deliver exceptional service across every client engagement." Under Padaon’s leadership, TBO will continue to strengthen the company’s workforce development initiatives, ensuring consistent quality across its remote staffing solutions for health care organizations, it says. TBO says Padaoan’s methodology centers on a philosophy she practices daily: “Great training builds confidence. A clear focus on the client builds trust. Together, they create lasting impact.” 

GF Health promotes Loope 

ATLANTA – GF Health Products has promoted Peter Loope to the position of president. Formerly senior vice president of sales, Loope has played a key role in building and strengthening Graham-Field’s sales team over the past decade. In his new role, he will oversee global sales, marketing, design, project management and national account teams. “We are thrilled to see Peter advance to president and are confident in his dedication to Graham-Field’s continued growth,” said Ken Spett, CEO. In all, Loope brings more than 30 years of experience in health care management to the role. For his part, Loope says he is ready to get to work. “With over 75 years of history, Graham-Field has built a strong legacy of service and innovation,” he said. “While our mission has evolved over time, our commitment to supporting our customers and employees is stronger than ever. I’m especially proud to help lead our exceptional team across four U.S.-based manufacturing facilities, and to support our customers and distribution network in over 43 countries around the world.” 

EnsoData names new chief commercial officer 

MADISON, Wis. – EnsoData has named Bobby Cockrill as chief commercial officer to oversee strategy and execution of sales and marketing functions and continue accelerating EnsoSleep PPG, EnsoSleep, RPM and EnsoTherapy adoption across North America. Previously, Cockrill worked at Bardy Diagnostics (BDx), which offered a patch-based cardiac monitoring solution. There, he grew a lean sales team into a force of 60-plus, leading to 100x revenue growth over his eight years. “Bobby’s extensive experience in cardiac monitoring positions him very well to scale EnsoData’s analogous offerings in sleep,” said Justin Mortara, Ph.D., CEO and president. “We anticipate significant expansion of the commercial team under Bobby’s leadership and are excited for this next chapter of growth.” Cockrill said he looks forward to helping scale an organization with such a solid foundation of proven AI solutions. “We’re now entering a high-growth phase, and I’m especially energized to expand our reach and grow a world-class team of healthcare sales executives to drive the next chapter," he said. 

Rehab Medical, Cork Medical make IBJ list 

INDIANAPOLIS – Rehab Medical and Cork Medical have once again earned recognition from the Indianapolis Business Journal (IBJ), securing spots on the publication’s 2025 list of Largest Medical Device/Product Developers in the Greater Indianapolis area. Rehab Medical landed at No. 4, up from No. 6 in 2024, while Cork Medical landed at No. 17. The rankings, determined by the number of Indiana-area employees, reflect the companies’ continued growth, innovation and dedication to improving patient outcomes. "Being recognized among Indiana’s top medical device developers is a direct result of our incredible employees who power our mission to improve lives every day," said Patrick McGinley, CEO of Rehab Industries. "This recognition is not just a number—it’s a reflection of our people-first culture and our ongoing commitment to delivering life-enhancing solutions to those we serve." Rehab Medical’s ranking highlights a significant year of workforce expansion and organizational development, propelled by increasing demand for advanced mobility solutions. Cork Medical’s ranking secures its position as one of the region’s top developers—thanks in part to its strategic focus on the successful national rollout of the Versa, a state-of-the-art negative pressure wound therapy device.