Elyria, Ohio
Invacare has lowered its earnings per share guidance for 2005,
citing Medicare reimbursement policies for power wheelchairs and
slower purchasing by home care providers who are preparing for the
year's FEHBP-based reimbursement cuts.
CMS' decision to postpone releasing new guidelines for power
wheelchairs — originally expected to be out by the fourth
quarter of 2004 — is partly to blame, the company said in a
recent earnings summary. The guidelines may not be released until
late this year.
Given these trends, combined with the confusion likely to result
from Medicare's plan to expand coding of the power wheelchair
reimbursement from four codes to up to 40 codes, the company
lowered its expected earnings for 2005 from $3 to $3.15 per share
to $2.75 to $2.90.
In response to these trends, Invacare said it is working to
improve the benefits from internal productivity programs and from
the acquisition of European-based WP Domus GmbH. To lower costs
further, the company said it plans to move additional production to
China, including the manufacture of power wheelchair bases.
