In brief: Hanger acquired, 3M’s health care division spun off | HME

2022-07-29 18:38:41 By : Ms. sophie wei

In brief: Hanger acquired, 3M’s health care division spun off, Quipt contract secured

Updated 11:38 AM CDT, Fri July 29, 2022

AUSTIN, Texas – Hanger, a national provider of O&P, has entered into an agreement to be acquired by Patient Square Capital, a dedicated health care investment firm, for approximately $1.25 billion. 

Under the terms of the agreement, Hanger stockholders will receive $18.75 in cash per share, representing an approximate 29% premium to the 30-calendar day volume-weighted average price (VWAP) ending July 20, 2022. Upon completion of the transaction, Hanger will become a privately held company and its common stock will no longer be traded on the New York Stock Exchange. 

“I’m very pleased to be announcing this agreement today as the transaction will result in immediate and substantial value creation for our stockholders,” said Vinit Asgar, president and CEO of Hangar. “This transaction represents a culmination of an extensive review by our board of directors of strategic alternatives to provide value to our stockholders and to offer financial flexibility for our company to pursue future growth initiatives. Patient Square Capital recognizes the value of our brand and the quality of our world-class team and is grounded in similar values that guide our actions. They share the same long-term vision for our company, which makes them an excellent partner for the next phase of our journey.” 

Hanger has approximately 875 Hanger Clinic locations nationwide. Through its Products & Services segment, Hanger distributes branded and private label O&P devices, products and components, and provides rehabilitative solutions.  

Patient Square says it uses deep industry expertise, a broad network of relationships and a true partnership approach to make investments in companies grow and thrive. 

3M to create separate health care business 

ST. PAUL, Minn. – 3M will spin off its health care division to create a standalone business focused on wound care, oral care, health care IT and biopharma filtration. 

The company says the health care division, with approximately $8.6 billion in sales in 2021, will be a diversified technology leader with a deep and diverse portfolio of trusted brands, global capabilities and leadership in attractive end-market segments. It says the move better positions the division to deliver industry-leading innovation that enables better, smarter and safer health care for patients worldwide. 

"Today's actions advance our ability to create value for customers and shareholders," said Mike Roman, 3M chairman and CEO. "Disciplined portfolio management is a hallmark of our growth strategy. Our management team and board continually evaluate the strategic options that will best drive long-term sustainable growth and value. The decision to spin off our health care business will result in two well-capitalized, world-class companies, well positioned to pursue their respective priorities." 

The new 3M, with $28.6 billion in sales in 2021, will remain a leading global material science innovator serving diverse end markets, with science and technology, manufacturing, global capabilities, and iconic brands. 

The company expects to complete the transaction by the end of 2023.  

Lincare sued over data breach 

CLEARWATER, Fla. – A lawsuit has been filed against Lincare, alleging the provider was negligent in ensuring the protection of customer data. 

The lawsuit, which seeks class action status, was filed on behalf of Catherine Cottam on July 14 in the U.S. District Court, Middle District of Florida. 

In an email to HME News, Lincare stated: 

“In September 2021, Lincare identified unusual activity on certain systems within its network.  We took immediate action to secure our network, notified law enforcement, launched an investigation, and engaged outside cybersecurity experts to assess the nature and scope of the incident. It was determined that certain systems were subject to unauthorized access. Lincare conducted a comprehensive review of those systems and worked diligently to provide notice to individuals whose information may have been involved in the incident. This incident did not have any impact on Lincare’s business operations or our ability to provide services to our patients. We take the protection of personal information very seriously and sincerely regret any inconvenience that this incident may have caused our patients, partners, and employees.” 

The lawsuit states that, although Lincare learned of the breach in September, it didn’t notify Cottam and others until June 2022, nearly eight months later. 

The affected data included at least “first and last names, addresses, Lincare account numbers, date of birth, medical information, which may include information concerning medical treatments individuals received such as provider name, dates of service, diagnosis/procedure, and/or account or record numbers, health insurance information, and/or prescription information.” 

Since the time of the data breach, the defendant has received numerous calls from various scammers attempting to get her to sign up for medical benefits and other scams, according to the lawsuit. 

Quipt partners with Cardinal to provide supplies 

CINCINNATI – Quipt Home Medical has executed a contract with Dublin, Ohio-based Cardinal Health at-Home. 

Per the contract, Quipt has agreed to sell and Cardinal has agreed to supply and distribute disposable medical supplies nationwide. 

“Cardinal will service our entire operating footprint, consisting of 94 locations across the country, aimed at increasing distribution channels while decreasing costs,” said Greg Crawford, chairman and CEO of Quipt. “Furthermore, this contract will provide us the ability to expand our continuum of care, produce meaningful cross-selling opportunities and allow us to further leverage the national insurance contract recently announced. This contract with Cardinal will also assist us in expanding our presence in the states we serve, giving us additional verticals to go after.” 

Quipt recently announced that it is accepting UnitedHealth Care nationally. 

The company has also been aggressive with acquisitions, most recently acquiring Hometown Medical in Mississippi in July and Access Respiratory Homecare in Louisiana in June. 

Lifeway Mobility buys Health & Comfort 

KANSAS CITY – Lifeway Mobility has acquired Health & Comfort Equipment Service in Kansas City, allowing the company to further expand its offerings throughout Kansas and provide services in Missouri. 

Health & Comfort has more than 30 years of experience in the home accessibility industry in the Kansas City metro area providing stair lifts, ramps and other solutions. 

“I am very excited to expand our offerings for home access by joining forces with Lifeway Mobility,” said Roger Blakely, owner of Health & Comfort, who will continue in his role. “We have built our business on helping our customers continue to live and enjoy their home and now we can expand to cover more of the Kansas and Missouri area.” 

Steve Hampton, a 22-year veteran technician at Health & Comfort, will also continue in his role, as will the rest of the company’s team. 

Acquiring Health & Comfort is another step toward Lifeway Mobility becoming a national leader in home accessibility, says Nathan Colburn, division vice president. 

“Roger and his team have earned their expertise and reputation with years of hard work making homes accessible in Kansas City,” he said. “We are proud to combine our customer systems and proven products to build on their work.” 

Lifeway Mobility serves customers in 25 states.  

Invacare takes several financial actions 

ELYRIA, Ohio – Invacare has secured a term loan agreement of up to $104.5 million with certain funds managed by Highbridge Capital Management LLC. The company has also entered into private exchange agreements providing for the settlement of $5 million aggregate principal amount of the company’s outstanding 5.00% Series II convertible senior notes due 2024 and up to $55.3 million aggregate principal amount of its outstanding 4.25% convertible senior notes due 2026.  “We are pleased to secure this additional capital which will provide Invacare with increased liquidity and added flexibility to address on-going supply chain challenges, and it will allow the company to accelerate its transformation plan and growth strategy,” said Matt Monaghan, chairman, president and CEO. “This funding should enable the company to service its elevated backlog, converting demand to timely sales and ultimately returning top-line sales growth.” Invacare also amended its existing asset-based lending credit facility to extend its maturity to Jan. 16, 2026, and reduced the maximum notional amount of the facility from $90 million to $35 million. Proceeds from the term loan were used to repay in full outstanding borrowings. 

Florida Medicaid sued over access to incontinence supplies 

JACKSONVILLE, Fla. – A lawsuit filed by attorneys for the Florida Health Justice Project and Disability Rights Florida on behalf of two women with disabilities alleges that Florida Medicaid is improperly denying coverage for incontinence supplies, in violation of federal law and the Americans with Disabilities Act. The lawsuit, reported in Health News Florida, says the state stopped providing the supplies to Blanca Meza and Destiny Belanger once they turned 21. “Plaintiffs are medically fragile adults each with bladder and bowel incontinence,” the lawsuit states. “As low-income Florida residents with significant disabilities, they receive their health services through Florida’s Medicaid program.” Without Medicaid paying for the supplies, Meza’s family faces $188 a month in costs, while Belanger’s family faces $200 a month in costs, according to the lawsuit. 

Organizations push PBM Transparency Act 

ALEXANDRIA, Va. – A letter signed by 207 organizations supports the Pharmacy Benefit Manager Transparency Act, S.4293, and asks Sens. Chuck Schumer, D-N.Y., and Mitch McConnell, R-Ky., to bring it for a full vote in the Senate. The bill, which was introduced by Sens. Maria Cantwell, D-Wash., and Chuck Grassley, R-Iowa, in May, passed the Senate Committee on Commerce, Science and Transportation in June. “We applaud the recent efforts of the Commerce Committee to advance S. 4293 on a bipartisan basis as this legislation would bring needed transparency to and ultimately stop PBM-insurers’ unjust and deceptive practices, especially as the three largest PBM-insurers now control at least 80% of the market,” the July 25 letter states. “We hope the full Senate will soon take up this legislation to empower the FTC to bring enforcement actions against the consolidated PBM-insurer industry and their anticompetitive practices, including spread pricing and clawbacks.” The PBM Transparency Act empowers the Federal Trade Commission to increase drug pricing transparency. Additionally, it would ban deceptive unfair pricing schemes like spread pricing and prohibit arbitrary clawbacks of payments made to pharmacies. It also includes provisions to allow other state officials to bring action to enforce the law if the state attorney general lacks jurisdiction to do so, and allow for a Government Accountability Office study of PBM practices.  

Council raises awareness on power seat elevation 

WASHINGTON – The National Council on Disability (NCD) will host a virtual public roundtable on Aug. 3 at 1 p.m. EST to promote Medicare coverage of power seat elevation and standing systems, according to NCART. The two-hour roundtable will include perspectives from members of Congress, people with mobility disabilities, clinicians, researchers and others regarding the legal and policy implications of coverage. “This is a very positive development in establishing Medicare coverage for this important technology,” NCART stated in a bulletin. Sen. Tammy Duckworth, D-Ill., and Rep. Jim Langevin, D-R.I., will be part of the proceedings, as well as various members of an ITEM Coalition workgroup that includes NCART. CMS has committed to seeking public comments on the ITEM Coalition’s request to reconsider the national coverage determination for mobility assistive equipment to include power seat elevation and power standing systems by August. This 30-day public comment period is the next step in the process of securing Medicare coverage for the technology. Register here for the roundtable.  

Greg Packer honored during RESNA conference 

WATERLOO, Iowa – Greg Packer, president of U.S. Rehab, was presented with the RESNA 2022 Honorary Fellow Award during the organization’s virtual conference on July 15. The award recognizes non-members who have promoted issues relevant to the field of assistive technology and rehabilitation engineering, and who have encouraged the independence of individuals with disabilities. “Greg is a pillar in our assistive technology industry,” said Kyle Walker, former vice president of rehabilitation program development for VGM HOMELINK, who nominated him for the award. “The lives touched (by Greg) are in arguably every aspect of our industry, from manufacturers to providers, researchers, policy makers, advocates, clinicians, professional organizations and most important of all the consumer in our communities, to make their lives better.” Doug Gayton, a RESNA Fellow and 2022 RESNA conference chair, also nominated Packer for the award. U.S. Rehab, a division of VGM & Associates, is a membership network of more than 1,300 independent complex rehab providers. 

VGM Canada seeks Woman of the Year 

BURLINGTON, Ontario – VGM Canada has announced the newly created Canadian HME Woman of the Year Award. The award is open to all women who work in the HME or mobility industry in Canada, including suppliers, physical therapists, occupational therapists, manufacturers and other professionals in the industry. “We’re excited to introduce this award,” said Dave Davies, president of VGM Canada. “This award provides recognition and visibility to incredible leaders in our industry. There are so many deserving candidates out there. We all know a woman who has made significant contributions to the HME or mobility industry in Canada. We are excited to bring this award to our colleagues.” Make a nomination for Canadian HME Woman of the Year here before Aug. 19. Nominators are encouraged to provide examples of how the nominee has made significant contributions throughout her career to serve her patients, community, business and the HME and mobility industry. The winner of the award will be announced during the Canadian Seating & Mobility Conference Oct. 20-21. 

Noridian announces pre-payment reviews 

WASHINGTON – The Jurisdiction D DME MAC Medicare Review Department is conducting Targeted Probe and Education (TPE) pre-payment supplier specific reviews for 10 specialties, Noridian Healthcare Services has announced. Those specialties are ankle-foot orthotics, glucose testing supplies, knee orthosis, manual wheelchairs, ostomy supplies, pneumatic compression devices, therapeutic shoes, spinal orthotics, surgical dressings and urological supplies. The current error rates for TPE pre-payment reviews for these products range from 15% for ankle-foot orthosis to 71% for pneumatic compression devices. 

CPAP Store USA offers Transcend from Somnetics 

LOS ANGELES – CPAP Store USA is now offering the Transcend Micro Auto Travel CPAP from Somnetics. "We cater to a large customer based in the United States who trust not only our experts with their knowledge and experience but also the manufactures that CPAP Store USA partners with, including an American-based company – Somnetics,” said Marina BerBeryan, ambassador of CPAP Store USA. “CPAP store USA strongly believes in supporting and working together with the U.S. companies first, prior to partnering with companies overseas." The Transcend Micro Auto Travel CPAP Machine includes many new digital features designed to make therapy setup and nightly use easier for patients who are on-the-go or during their travels. The baseball-sized travel Transcend Micro CPAP machine features proven algorithms for compact and portable therapy weighing less than 0.5 pounds and measuring under 4 inches. 

Soleo Health tapped to distribute Novartis drug 

FRISCO, Texas – Soleo Health, a national provider of complex specialty pharmacy services, has been selected as a limited distribution partner for the cardiovascular drug LEQVIO manufactured by Novartis. “Soleo Health’s expertise in caring for patients with complex conditions and our ability to offer services in the home or alternate sites of care creates additional value for pharmaceutical manufacturers,” said Drew Walk, CEO of Soleo. “We continue to expand our limited distribution partnerships with numerous drug manufacturers as they appreciate our dedication to clinical excellence and high-quality care.” LEQVIO is a subcutaneous injection that Soleo Health will administer to patients in their homes or at one of the company’s ambulatory infusion centers nationwide.  

Somnoware launches Fax Intake Module 

SUNNYVALE, Calif. - Somnoware, a cloud-based platform for enhanced respiratory care management, has released a Fax Intake Module to streamline the fax intake process with easy-to-use functionality for patient referrals. “Somnoware’s intake module eliminates paper processes, saves time, and reduces errors,” said Andrew Scheinbach, Somnoware product manager. The module enables users to send, receive and manage patient documentation digitally—all within the platform. With an effortless setup, users establish a fax number or port an existing line to Somnoware that enables the platform to become the digital repository for inbound and outbound referral faxing. Faxes can be managed from anywhere with an internet connection. 

3M, Hanger, M&A, O&P, Orthotics, Prosthetics, Quipt Home Medical

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In brief: Hanger acquired, 3M’s health care division spun off, Quipt contract secured

O&P giant Hanger to be acquired

Invacare takes several financial actions

Somnoware launches Fax Intake Module

3M to create separate health care business

Lincare sued over data breach

O&P giant Hanger to be acquired

3M to create separate health care business

Quipt partners with Cardinal to provide supplies 

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