Issue link: https://read.dmtmag.com/i/40005
s Apria begins "long- term relationship" with Humana, but contract is not "exclusive," says Lisa Getson. See story page 1. Barnes Healthcare researches employee salaries. . . . . . 24 Enos Medical adds online store. . . . . . . . . . . . . . . . . . . . . 24 New location, expanded mission for MHS ............ 26 As seen on HME News TV: Joel Marx ................ 27 Providers WWW.HMENEWS.COM / SEPTEMBER 2011 / HME NEWS 23 BRIEFS Apria's Tennessee support center still growing JACKSON, Tenn. – Apria Healthcare plans to hire another 50 people by the end of this year at its facility here, according to local news reports. In 2004, the provider took over a 55,000-square-foot space and had about 200 employees. By the end of this year, it will encompass 100,000 square feet and have about 650 employees who pro- vide support to about 25% of Apria's East Coast branches. Most of the employees in Jackson are responsible for taking orders from patients and referral sources, pro- cessing payments, and doing collections. Max-Wellness opens first in-hospital location CLEVELAND – Max-Wellness opened its first hospital retail store July 25 in Lake Health's West Medical Center. The 600-square-foot location offers health and wellness prod- ucts for patients being discharged, along with products like vitamins, sleep essen- tials and healthy snacks for visitors and staff. Max-Wellness also operates four standalone locations in Cleveland; Sara- sota, Fla.; and Naples, Fla. Max-Wellness was founded by Michael Feuer, founder of office supply superstore OfficeMax. AmeriCare seeks to reduce re-admissions PONTIAC, Mich. – AmeriCare Medical in Au- gust announced that is has partnered with St. Joseph Mercy Oakland on a program to reduce hospital re-admissions and cut Medicare costs. The "Total Care Experi- ence" will assess patients before discharge to see if they are at risk of being re-admit- ted to the hospital. Patient care coordina- tors will then follow up with the patient to see how well post-discharge instructions are being followed at home, and determine what, if any, changes need to be made. "Re- admissions are a common problem for any hospital," said AmeriCare President Greg Jamian. "We believe (this) will be a great solution for patients to receive the care they need at home, instead of wasting multiple trips back and forth from the hospital." Two convicted in nine-year fraud scheme CULVER CITY, Calif. – The co-owners of Cara- van Medial Supplies and Prosperity Home Health Services were convicted of Medicare fraud in July, according to a press release from the Departments of Justice and Health and Human Services. Evans Oniha and Ca- millus Ehigie pled guilty to multiple counts of healthcare fraud. From October 2002 through February 2011, the two conspired with others to defraud Medicare by pay- ing "marketers" for beneficiary information. That information was used to submit false claims for DME and home health services that were not medically necessary and often not even provided. Between the two com- panies, along with a third owned by Ehigie, Osbed Medical Supply, the two submitted false claims totaling nearly $20 million. Cape Medical makes a wicked good buy Deal will allow provider to increase size, scale BY THERESA FLAHERTY, Managing Editor SANDWICH, Mass. – Cape Medical Supply expanded its reach across three states in June, when it acquired Kittery, Maine- based Seacoast Sleep Solutions. "This is our first venture across state lines," said CEO Gary Sheehan. "Geo- graphically, it's a nice expansion, and in terms of product categories, it lines up very nicely with what we do now." Like Cape Medical, the six-year-old Sea- coast—which has been renamed Seacoast Respiratory—offers sleep, home oxygen and durable medical equipment. Cape Medical has retained Seacoast's employees and plans additional hiring. In July, Sheehan was already calling on referral sources "We've been going in with a positive message about the level of service we pro- vide and how we interact with healthcare professionals and their patients," he said. "So far, that's resonated really nicely." It's the first buy for Cape Medical since 2005, when the company acquired the home oxygen business of Cape Cod Healthcare. In 2010, the provider opened a 5,000-square-foot location in Canton, Mass.—its first move off Cape Cod. With Medicare's competitive bidding program still casting uncertainty over the HME industry—Round 2 includes sev- eral MSAs in Massachusetts—Sheehan acknowledges he's doing the opposite of what many of his fellow pro- viders are doing. "Some people feel Gary Sheehan it's not the time to put money to work or not the time to go out and be getting things done," said Sheehan. "We take a different view of the marketplace in terms of how we are going to react and deal with the changes that are coming." For Cape Medical Supply, that means paying attention to scale, size and its diver- sity of product offerings. "Those are going to be critical for us to succeed in the next three to five years," said Sheehan. "As we see opportunities to continue to expand we will certainly con- tinue to take them." HME Lincare builds bid presence Provider posts 7.3% increase in net revenues, 7.9% decrease in net income for second quarter CLEARWATER, Fla. – Lincare expects to be able to provide home oxygen therapy in seven of the nine competi- tive bidding areas very soon, the provider announced in its earnings report for the second quarter of 2011. In the July 18 report, CEO John Byrnes states: "We have completed acquisitions of companies that are contracted to provide home oxygen ser- vices in seven of the nine com- petitive bidding markets and positive airway pressure ther- apy in eight of nine markets. We are awaiting final approval by CMS of the assignment of those contracts." Currently, Lincare has con- tracts to provide oxygen in two of the nine competitive bidding areas: Charlotte and Miami. This is somewhat of an about-face for Lincare. In its earnings report for the second quarter of 2010, the provider criticized the pric- ing mechanism used by CMS to determine the rates for the program (its bids in Char- lotte and Miami were 19% and 16% higher than the established rates) and stated it had no plans to "acquire contracts" from winning bid- ders in the other seven areas. In its most recent report, Lincare also highlights the acquisition of a specialty phar- macy in February ("we are pleased with the integration of that acquisition") and the progress of an anti-coagulation LINCARE CONTINUED ON PAGE 26 Alpine Home Medical drew 200 people to the grand opening in June of its new location in Provo, Utah. Attendees who "liked" the provider on Facebook were entered into a drawing to win an iPad2. The winner: Mindy Sauther, pictured. Alpine draws them in with iPad BY THERESA FLAHERTY, Managing Editor PROVO, Utah – They came for the iPad, but they stayed for the company. That's what happened in June when Alpine Home Medical gave away an iPad 2 as a way to promote the grand opening of its new location in Provo. To register to win the iPad, people had to "like" Alpine on Facebook. The catch: Contest entrants had to be present at the grand opening to win. "Most of the people who came that day came for the iPad, which at first may sound discouraging," said Briana Lake, marketing coordinator. "But the exposure we got was great. It was a lot of fun, people were able to walk around the showroom while they waited for us to announce the winner." In all, the event drew about 200 people, mainly "moms in iPAD2 SEE PAGE 27 Rotech 'getting it together' BY THERESA FLAHERTY, Managing Editor ORLANDO, Fla. – Rotech Healthcare appears to be on a roll, even attract- ing the attention of private investors. "They seem to be getting it togeth- er," said Bob Leonard, an analyst with The Braff Group in Pittsburgh. "They are a decent sized player and they are performing pretty well." Separate Securities and Exchange Commission (SEC) filings in June and July show that two private equity firms each own a small share of Rotech's common stock: Robecco Investment Management owns 7.15%, while Wyn- nefield Capital owns 6.6%. Then in August, Rotech submitted an appli- cation to return to the NASDAQ. Why the renewed interest and activity? "(Investors) are starting to get on top of what's happening," said Jon- athan Sadock, partner and CEO of Paragon Ventures in Philadelphia. ROTECH CONTINUED ON PAGE 27