Issue link: https://read.dmtmag.com/i/52926
■ M&A: For companies looking to buy, the key word is "scale," says analyst Jonathan Sadock. See story below. Providers turn to SAD lights to boost retail ........... 17 All-Med hires consultant to help win contracts ........ 17 GMEA won't shy away from bidding ................. 18 Provider teaches how to travel with HME. . . . . . . . . . . . . 19 Providers WWW.HMENEWS.COM / FEBRUARY 2012 / HME NEWS 17 BRIEFS Symbius looks to grow PHOENIX – Symbius Medical, a full line pro- vider of durable medical equipment, an- nounced in December that it has hired four new territory managers, in Colorado, North Carolina, Tennessee and Virginia, to grow its urologicals business. "We are looking toward the future of urological care and will continue to invest in our sales force to educate our customers, physicians and referral sources about the latest uro- logical products available from leading manufacturers," stated Gary Hershey, vice president of urological sales, in a release. Symbius Medical serves more than 8,600 customers nationwide. The provider also offers respiratory, mobility and nutritional products. Max-Wellness revamps, expands website CLEVELAND – Max-Wellness has expanded its website, www.max-wellness.com, and plans to add several thousand more prod- ucts over the next several months, the com- pany announced Dec. 28. The revamped site is more user-friendly and has several new features, including Max-Answers, a database of self-care information. The site, which will eventually carry about 20,000 products, offers products ranging from skin care and vitamins to bath safety, durable medical equipment and mobility equipment. Max-Wellness also operates five brick-and- mortar stores in Ohio and Florida. Binson's new location to offer full line of HME LINOVIA, Mich. – Binson's Home Health Care Centers opened a new location in Linovia, Mich., the provider announced in Decem- ber. The 32,000-square-foot store will em- ploy 25 new employees and offer a full line of HME, respiratory, diabetes care, hearing aids, orthotics and prosthetics, as well as women's specialty products. Binson's has six other metro Detroit locations and em- ploys more than 500 people. Cameron Company gifts needy senior with scooter CLEVELAND – Cameron Company in Decem- ber gave a scooter to Leatrice Farmer, who only had a walker to help her get around. It's the third year in a row the provider has made such a donation. Throughout the year, Cameron Medical visits assisted liv- ing facilities, health fairs and senior centers to sign up seniors for an annual drawing, held between Thanksgiving and Christ- mas. Past recipients have received a gift card and a lift chair. Short takes Kittery, Maine-based Seacoast Respira- tory in December tapped Mike O'Brien as its new general manager. O'Brien has 10 years of experience in the DME and homecare fields…Crown Home Medical Equipment celebrated its grand opening in Granite City, Ill., on Dec. 7. The store is owned by Danny Cox. M&A Will Round 2 make big guys buy? BY THERESA FLAHERTY, Managing Editor YARMOUTH, Maine – Competitive bidding expands to an additional 91 competitive bid- ding areas in Round 2, but it's too early to tell whether national provid- ers have their eye on acquisitions in those markets, say analysts. "We see them putting their feet in the water a little bit, but they're not aggressively chasing opportunities," said Rick Glass, president of Tarpon Springs, Fla.- based Steven Richards & Associates. "And it's not necessarily in Round 2 areas vs. not in Round 2 areas. I think to a large extent, a lot of them view it as they'll wind up getting the business anyway." Lights done right T BY E. DEPREY, Associate Editor HERE ARE a few things providers should know if they want to successfully add SAD lights to their prod- uct mix, says Peter Walker, brand manager at Uplift Technologies. 4 Tell patients how the lights work: The lights should reach the receptors in the back and bottom of the eye, Walker said. "When they're exposed to that light, they basically cause the pineal gland to stop producing melatonin, which is what makes you tired and groggy," he said. Shining a light at the ceiling won't let the rays hit those SAD 101 SEE PAGE 19 Rotech already on the move. See page 1 None of the nationals won many contracts in Round 1 of competitive bidding: Lin- care got 12; Apria accepted 14. The financially troubled Rotech won 17 contracts. With their geo- graphic reach— websites say Lincare they probably don't want to be there," said Dexter Braff, president of Pittsburgh-based The Braff Group. More than likely, national providers will wait to see if they win contracts, or whether they have to acquire companies that have won contracts, say analysts. Rick Glass has 1,108 "centers," Apria has about 550, and Rotech has 453—the nationals likely already have a strong presence in Round 2 bid areas, say analysts. "I am sure that everyone's got a couple of spots on the map where they're not covered in Round 2, but if they're not there already, "They (could also be) waiting to see if bid prices are even reasonable enough for them to pursue the market," said Braff. For companies—national or regional— that are looking to buy, the key word is "scale," say analysts. "They are taking into consideration the synergies that they will get from scaling," said Jonathan Sadock, partner and CEO of Philadelphia-based Paragon Ventures. HME SAD provides bright spot in winter retail doldrums BY ELIZABETH DEPREY, Associate Editor YARMOUTH, Maine – Light therapy for Seasonal Affective Disorder (SAD) has been around for more than 20 years, but many HME providers have only recently turned to SAD lights to increase their retail offerings. "It has been a very good item for us," said Jesse Riggleman, who began selling SAD lights at Kittanning, Pa.-based Armscare last year. "This is the prime sea- son for them." SAD is a disorder in which people experience symptoms of depression in response to chang- es in light, particularly the short- er days during winter months. SAD lights work by replacing that light, therefore improving mood, USING SAD LIGHTS regularly in the early morning can alleviate Seasonal Affective Disorder symptoms, experts say. said Dr. Larry Epstein, chief med- ical officer at Brighton, Mass.- based Sleep HealthCenters. "The relationship between light exposure and mood has been known for quite a while," said Epstein. "There's very good data to show (using SAD lights) is equivalent to what you'd get treating SAD with medication." Like with other durable LIGHTS SEE PAGE 19 Apparently, it takes a payer to woo a payer Provider hires consultant to help him win contracts BY ELIZABETH DEPREY, Associate Editor GLENDALE, Ariz. – Want to find out what managed care payers are looking for in an HME provider? Just ask one, says provider Gary Cox. Cox, president of Glendale, Ariz.-based All-Med Health Care, hired Gene Dameron, a consul- tant who has worked for several payers, including United Health- care, over the past 25 years, to help him win contracts. "He really understands things from the payer's side and gives us some leverage in creating rela- tionships with the payers that we haven't had before," Cox said. The No. 1 thing to know about HMOs, Dameron says: They must continually make more and more profits for their shareholders. Understanding that puts a provider in a better position, he said. Dameron is helping Cox part- ner with physicians, nursing homes and assisted living facili- ties to offer HMOs a continuum of care that can save them money. "He gives us leverage with payers that we haven't had before." Gary Cox, All-Med Healthcare "HMOs are looking for DME companies they can give nation- al contracts to," said Dameron. "Companies like All-Med can't even get in the door. You have to look at out-of-box ways to serve patients." Consortiums like these save HMOs money in the long run, Dameron said, because smaller providers pay closer attention and can stop small health issues before they become big, expen- sive ones. "That's where HMOs miss the boat," he said. "They don't see their membership as individual people; their responsibility as a business is to be as cost-effective as they can so they can make a profit. If we collaborate, we can reduce the cost of care the right way." HME