Issue link: https://read.dmtmag.com/i/48253
■ These dollar bills drove traffic to Jaysec's Medtrade booth in October—and aided the local community at the same time. See page 35. Drive acquires Inovo/CHAD ......................... 1 Invacare, Pride do some "restructuring" ............. 33 Invacare urges providers to act . . . . . . . . . . . . . . . . . . . . . 33 Feeding and feedback at Leaders Lunch ............. 34 BRIEFS Drive buys ActiveCare PORT WASHINGTON, N.Y. – Drive Medical an- nounced in October that it has acquired ActiveCare Medical, a manufacturer and distributor of power wheelchairs and scoot- ers. Drive Medical says ActiveCare Medi- cal's products will complement its existing portfolio. ActiveCare Medical says Drive Medical's distribution capabilities and re- sources will allow it to expand its business across North America. ActiveCare Medical will operate as a division of Drive Medical and its president, Steve Neese, will be re- sponsible for the power mobility product category for Drive Medical. Invacare reports lower earnings ELYRIA, Ohio – Invacare in October reported $12.8 million in net earnings for the three months ended Sept. 30, 2011, compared to $15.6 million for the same period last year. It reported net sales of $456.5 million vs. $437.5 million. Invacare reported $30.9 million in net earnings for the nine months ended Sept. 30, 2011, compared to $18.1 million for the same period last year. It re- ported net sales of $1.35 billion vs. $1.27 billion. With "continuing pressure on gross margin," Invacare narrowed its guidance: to between $2.05 and $2.10 from $2.05 to $2.15 for adjusted earnings per share; to between 2.5% to 3% from 3.5% to 4.5% for organic net sales growth; and to be- tween $80 million and $90 million from $85 million to $95 million for free cash flow. Up and down at ResMed SAN DIEGO – Revenues were up and prof- its were down at ResMed for the quarter ended Sept 30, 2011. Revenue increased 12% over the same quarter a year ago to a record $314.8 million. Net income was down 11% to $50.5 million or 33 cents per share, which the company blamed on currency exchange rates. Revenue in the Americas increased by 9% to $163.9 mil- lion over the previous year's quarter, while revenue outside the Americas increased by 15% to $145.5 million over the previous year's quarter. Mabis gets new name WAUKEGAN, Ill. – Mabis DMI has changed its name to Briggs Healthcare, it announced Oct. 13. The name change is part of a three-year brand transition that builds on the 65-year-old Briggs name and reputa- tion. Briggs Medical Service Company in 2004 acquired DMS Holdings, which in- cluded Mabis. Short take Philips Respironics' New Kensing- ton, Pa., plant was named "2011 Plant of the Year" by Assembly Magazine and the Boston Consulting Group. The 172,000-square-foot-plant was chosen for "its creatively applied lean manufac- turing principles and its ongoing commit- ment to continuous improvement at all levels of the organization." Inogen settles into role as HME provider 'Like any other provider, we're going to try to continue growing our patient base' BY LIZ BEAULIEU, Editor GOLETA, Calif. – Inogen had a busy end to 2011. The man- ufacturer-provider of portable oxygen concentrators (POCs) expanded its geographic reach into Tennessee and Florida, and won a contract to provide prod- ucts and services to TriCare military members in 21 states. Scott Wilkinson, vice presi- dent of sales and marketing for Inogen, says you can expect more of the same in 2012. "Like any other provider, we're going to try to continue growing our patient base," he said. Inogen now has a presence pretty much nationwide for Medicare, and a presence that's growing for other payers. BREATHING EASY IN TENNESSEE In Tennessee, Inogen acquired Breathe Oxygen Services just outside of Nashville to meet a requirement that providers must have a physical location in the state. It wasn't the first time Inogen has acquired a pro- vider, and it probably won't be the last, Wilkinson said. "We are continuing to look for the right opportunities," he said. While there are several cit- ies in Tennessee scheduled for Round 2 of competitive bid- ding, Wilkinson said the pro- gram wasn't the driving force behind the acquisition. "We're trying to serve patients all over the country," he said. "If there wasn't com- petitive bidding, we'd still want to serve patients in Tennessee. It just so happens that there is competitive bidding and this allows us to bid." ELIMINATING 'BLIND SPOTS' In Florida, Inogen obtained INOGEN SEE PAGE 34 Invacare lays off 50 'We've had to make some tough decisions as far as resources are concerned' BY LIZ BEAULIEU, Editor ELYRIA, Ohio – Invacare, one of the HME industry's largest manu- facturers, laid off about 50 employees in October in response to mounting reimbursement cuts. The layoffs represent less than 1% of Invacare's global work- force of about 6,200, says Lara Mahoney, director of investor relations and corporate communications "We're looking at all areas to make sure we're as efficient as possible," she said. "Unfortunately, that means we've had to make some tough decisions as far as resources are concerned." The laid-off employees, described as office staff, were offered severance packages and outplacement services. About 30 of the employees were working at Invacare's world head- quarters in Elyria, Ohio, which employs about 1,200. Invacare, like HME providers, has had to make significant changes to its business to make do with less. The manufac- turer, for example, is streamlining its product portfolio glob- ally under the name One Invacare, Mahoney said. "Home care is a good industry to be in—it's the trifecta of health care: it's patient preferred, it has better outcomes and it's more cost effective," she said. "So we just have to make sure we're all running as efficiently as possible, because it doesn't appear reimbursement will be going up anytime soon." Invacare last laid off employees in 2006, when it moved LAYOFFS SEE PAGE 35 Vendors WWW.HMENEWS.COM / DECEMBER 2011 / HME NEWS 33 *12 VND (photo) book signing MISSING 'No Turning Back' People who know Bryan Anderson as Quantum Rehab spokesman have heard parts of his story. But now, with the help of authors Bryan and David Mack, the whole story is available in book form: "No Turning Back: One Man's Inspiring True Story of Courage, Determination and Hope." The book became officially available Nov. 1, but Medtrade attendees had the opportunity to purchase advance copies of the memoir. Anderson was awarded a Purple Heart for service he gave as a sergeant in the military police in Iraq and is now both the national spokesperson for Quantum Rehab and for USA Cares, a nonprofit organization that assists post-9/11 veterans in times of need. Invacare urges providers to 'Act Now' 'We've had a unique opportunity to see what works and doesn't work' BY LIZ BEAULIEU, Editor ELYRIA, Ohio – With Round 2's imminent rollout, Invacare knows a new group of HME providers is scrambling for strategies to deal with com- petitive bidding. That's why it launched a program at Medtrade in October called "Act Now, Ask Me How." Wearing buttons with the program's name, Inva- care's Mal Mixon and Cara Bachenheimer set up shop in the company's booth at the show to discuss how provid- ers in Round 1 managed to keep their businesses intact, despite the program's many challenges. "As the largest supplier to bid winners in the first nine MSAs, we've had a unique opportunity to see what works and doesn't work," said Brian Ellacott, vice president and general man- ager, Invacare North Ameri- can Commercial Operations. "What we've seen is that pro- viders who planned ahead, reconstructed their business- es and took out costs were the ones who were success- ful." The foundation of the pro- gram is a booklet that out- lines 18 steps providers can take to prepare for and suc- ceed under competitive bid- ding. One of those steps: transi- tioning from a delivery to a non-delivery model for oxy- gen, a move that has helped Round 1 bid winners make due with one-third less INVACARE SEE PAGE 35