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.