HME Company Newswire

Q2 Revenues Down at American HomePatient
BRENTWOOD, Tenn.–On Thursday, American HomePatient announced
revenues for the second quarter ended June 30 decreased 12.4
percent compared to the same quarter in 2007.

Revenues for the quarter were $64.2 million compared to $73.3
million in 2007, a decrease of $9.1 million. Revenues for the six
months were $133.4 million compared to $150.3 million for the same
period in 2007, a decrease of $16.9 million, or 11.2 percent.

The decreases were primarily attributable to a change in
inhalation drug product mix and the company’s reduced
emphasis on less profitable product lines such as nonrespiratory
DME and infusion therapy, according to a statement. In addition,
initiatives designed to improve patient co-pay collections and
provide appropriate service levels to patients were unprofitable,
the company said.

Operating expenses for the quarter compared to 2007 declined by
approximately $1.0 million, or 2.8 percent, while operating
expenses for the six months compared to the same period last year
declined by $1.7 million, or 2.4 percent. The decreases were the
result of efficiencies that helped reduce operating costs, the
company said.

Apria Postpones Investor Call
LAKE FOREST, Calif.–Last week Apria Healthcare Group delayed a
conference call with investors, saying it needed to analyze a
possible misstatement in its accounts. The company said it now
expects to hold its quarterly call to discuss second quarter
results during or before the week of Aug. 11.

In preliminary results, the company said second quarter revenue
grew over the prior year by 35.5 percent to $531.2 million from
$391.9 million in 2007. Q2 net income was $22.6 million, an
increase of 17.4 percent, compared to $19.3 million in the second
quarter last year.

Cross-Country Move for CHAD
NAPLES, Fla.–Inovo announced last week it has completed the
relocation of CHAD Therapeutics’ production and sales and marketing
functions from California to Naples, Fla. Inovo acquired CHAD in
February of this year.

“The combination of CHAD’s leadership position and Inovo’s
manufacturing expertise will allow CHAD to continue in the
tradition of innovation and excellence,” said Inovo CEO
George Harris. “With 100 percent of our time and energy
devoted to oxygen conservation, we are able to focus on this
segment of the industry, identify needed improvements, and deliver
technological advancements quickly and efficiently.”

Faced with rising delivery costs and cuts in oxygen
reimbursement, home medical equipment providers are dependent upon
the ability to respond quickly and effectively to changing market
conditions. “We obviously have a vested interest in their
success,” said Harris, “so it is imperative that our
business objectives are aligned with their needs.”

CHAD offers a broad line of electronic, pneumatic and disposable
oxygen conservers. Inovo has manufactured both regulators and
conservers for the private-label market for over 10 years.

LifeScan, ResMed Partner on Diabetes, SDB
Education
MILPITAS, Calif.–LifeScan, which makes blood glucose meters for
diabetes, and ResMed, manufacturer of medical devices for the
diagnosis and treatment of sleep apnea, have announced an exclusive
co-marketing agreement to focus on educational and
cross-promotional efforts to benefit the patients and health care
professionals served by both companies. The goal is to build
awareness among health care professionals of the overlap of these
two conditions, trigger new approaches to patient care and
ultimately improve the rate of treating patients suffering from
both SDB and diabetes, the companies said.

The agreement between the two companies comes on the heels of a
recent announcement by the International Diabetes Federation about
the correlation of type 2 diabetes and SDB.

“Through this agreement, it’s our hope to make significant
inroads into educating more physicians about the coexistence,
identification and care of these two diseases, and getting more
patients diagnosed, treated and on the road to a healthier
future,” said Tom West, president North America,
LifeScan.

Lincare Sees Revenue Jump
CLEARWATER, Fla.–Lincare announced its Q2 revenues were $428.4
mllion, an 8 percent increase over revenues of $397.1 mllion for
the same quarter of 2007. Net income for the quarter ended June 30
was $62.6 million compared to $56.0 million for the same period
last year.

Revenues for the six months were $843.8 million, a 9 percent
increase over $775.5 million for the comparable period last year.
Net income for the period was $!23.3 million this year compared to
$109.9 million for the first half of 2007.

The company said revenues and earnings were impacted by a change
in order patterns for certain inhalation drugs. In April, CMS’ DME
MACs issued a revision of the nebulizer local coverage
determination that would have effectively eliminated Medicare
reimbursement for the drugs as of July 1.

As a result of the potential loss of access, the company said a
significant number of its customers placed orders in June to
receive a 90-day shipment of the drugs rather than a 30-day
shipment. According to a company statement, the net effect of the
ordering change was to accelerate approximately $18.9 million of
revenues in the second quarter that would otherwise be expected in
the third quarter.

CMS subsequently delayed implementation of the LCD, but Lincare
said it now expects third quarter revenues will be reduced by
amounts similar to those that increased in the second quarter.

The company added 10 new operating centers during the second
quarter, bringing the total number of locations to 1,039. Lincare
also completed the acquisition of a small infusion therapy provider
in Mississippi during the quarter.

Otto Bock Drops OrthoRehab Name
MINNEAPOLIS–Otto Bock HealthCare has discontinued the use of the
OrthoRehab name for its post-surgical orthopedic services. The
change reflects the integration of the two companies’ orthopedic
rehab product lines and support services after Otto Bock’s 2005
acquisition of Arizona-based OrthoRehab, the company said.

In other company news, Chuck Grosso will assume the newly
created position of national sales director for Otto Bock’s
Orthopedic Services business area, including responsibility for the
national roster of certified patient service representatives who
provide in-home delivery and care.

Now marking its 50th year of operation in the U.S., the
80-year-old Germany-based Otto Bock produces over 25,000 types of
prosthetic, orthotic, mobility and rehabilitation products.

Pride, MED Sign New Contract
LUBBOCK, Texas–The MED Group and Exeter, Pa.-based Pride Mobility
Products Corp. announced last week they will continue their
long-term relationship with an extended contract. Effective July 1,
2008, the contract enables MED Group members to continue receiving
access to Pride’s mobility products, educational and marketing
support services in the most cost-effective manner, the companies
said.

According to John Burks, MED Group’s senior vice president of
supplier relations, Pride’s “combination of being the
high-quality and cost efficient manufacturer, coupled with the
exceptional work that they do to support our industry was key
motivation to renew our agreement well before expired.”