Invacare Hikes Prices

ELYRIA, Ohio—Citing the rising costs of raw materials,
fuel and other commodities, officials at Invacare informed
customers last week that prices were going up. Affected product
categories include home care beds and mattresses, custom manual
wheelchairs, personal care, manual wheelchairs, respiratory,
patient transport, power rehab and rehab parts.

The list of increases includes a $30 net increase per bed; 1
percent on both the Solara 3G and Spree 3G custom manual
wheelchairs; up to a 7 percent list increase for stock manual
wheelchairs; $5 net on stationary concentrators and kits containing
stationary concentrators; a 4 percent list increase for power lifts
and slings; and $7.50 and $10.50 net for a U1 AGM battery on-chair
and off-chair, respectively.

Providers received the news in an April 4 letter from Brian
Ellacott, vice president and general manager of commercial
operations for home care and long-term care at the HME
manufacturing giant.

“Invacare’s cost reductions and global streamlining of our
operations continue unabated,” Ellacott wrote.
“However, even with these aggressive actions, the pace of the
current increases in raw materials, transportation costs and
negative foreign exchange impact make it impossible for Invacare to
absorb all of these costs in their entirety.

“While taking on most of the negative impact,” he
continued, “Invacare will be increasing prices as minimally
as possible on a limited number of home medical equipment products,
based on the specific areas most impacted by these cost pressures.
We also could see some supply chain disruption and cost increases
for electronic components due to the earthquake and tsunami
impacting Japanese manufacturers.”

Despite the cost pressures, Invacare will continue to invest in new
products and services and to represent the home care industry in
Washington, which Ellacott called “a critical
area.”

“We must continue to communicate to politicians, bureaucrats
and the public at large that we enhance people’s quality of life
while at the same time provide a solution to the escalation of
health care costs in the country,” he said.

The new pricing will be effective May 1, 2011.

“I am not surprised, because Invacare is facing an increase
in freight and commodity costs, particularly aluminum and
steel,” said HME consultant Colette Weil, managing director
of Summit Marketing, Mill Valley, Calif. While price increases are
understandable, Weil said, that doesn’t make things any
easier for providers. “When you consider Medicare, other
third-party payers and Invacare’s price increases, providers
are getting squished in the middle,” she said, adding that
other manufacturers could follow with price hikes of their
own.

“Everyone is facing the same macro issues of freight and
commodity pricing in addition to managing fleets at a time of

rising gas prices,” Weil said. “The bright side is
that, particularly with cash-sale items such as bath safety,
providers have a bit more flexibility.” HME companies must
back up their retail pricing with “a strategy of sale and
promotion, while also being willing to consider delivery charges on
the cash-sale items,” she said.

In other news at Invacare last week, the company launched its
“Real Life” awareness campaign. The initiative is
designed as a platform to share stories of “Yes, You
Can,” which is Invacare’s familiar marketing slogan,
through YouTube, Facebook and Flickr. People can submit videos and
photos of someone living with a disability, ailment or advancing
age who inspires them.

“’Yes, you can’ comes in many forms, from winning
a gold medal to being able to go to your grandson’s soccer
game, and that is the spark behind the Real Life campaign,”
said Lou Slangen, Invacare’s senior vice president, corporate
marketing and chief product officer. “People are incredibly
resilient and they surprise you. Through the Real Life campaign, we
want to share these stories of ‘Yes, you can’ and
perseverance with the world.”

As part of the initiative, three stories will be selected to win
$3,000 for their creators, with $6,000 donated to the charity of
their choice. The contest runs from April 4 to June 30, 2011.