HEADLINE NEWS
Amendment Levels Playing Field for In-State, Out-of-State Providers
CARY, N.C.--In an amendment to the state's Pharmacy Practice Act of 1995, the North Carolina General Assembly is now requiring out-of-state durable medical equipment providers who deliver items and services directly to North Carolina residents be issued a permit to do so by the North Carolina Board of Pharmacy. In addition, out-of-state providers must agree to conduct business in North Carolina in accordance with rules and requirements established by the NCBOP.
The North Carolina Association of Medical Equipment Suppliers initiated the amendment, which was ratified in July.
"NCAMES felt the same level of patient care [required of North Carolina DME providers] should be required to out-of-state providers," said Steve Hudson, director of investigations and inspections, NCBOP.
"There had been instances where out-of-state providers were coming into the state and not performing up to the standards that North Carolina has set for its DME providers," said Beth Bowen, executive director of NCAMES. "So to protect North Carolina citizens and DME businesses, we said �Let's make it even for everyone.'"
Neither Bowen nor Hudson could estimate how many out-of-state providers the new law will affect. "A lot," Bowen said. "That's 49 other states, with no telling how many providers."
Bowen said while in-state providers have reacted positively to the new law, she's already heard some negative responses from out-of-state providers.
"Sorry about that," she said. "But we want providers to perform up to the standards that are set by the law."
It's still unclear whether other states will follow North Carolina's lead. However, Bowen said she has warned those states in the process of developing state licensure laws--such as North Carolina's Pharmacy Practice Act--to take care of the issue from the beginning.
"We were the first state to have a law like this and we made some mistakes along the way," she said. "Leaving this out was one of those mistakes."
To obtain a permit, out-of-state DME providers must complete a permit application and appear in person before the NCBOP.
For more information about the licensing process or NCBOP expectations, contact Hudson at 828-465-2324. To request an application for licensure from the NCBOP, contact Melanie Hawn at 919-942-4454.
Increasing Use of Alternate Care Sites Driving Infusion Pump Market
Patients are becoming increasingly mobile and are spending their recovery in alternative care facilities, which is driving the infusion pump market, according to a new market analysis report from market research firm Frost and Sullivan.
The market for infusion pumps, which includes large-volume, syringe infusion, enteral feeding, pain, and ambulatory infusion pumps, hit the $463.4 million mark in 2000 and is expected to increase to $606.5 million by 2007, according to the report, entitled "U.S. Infusion Pump Markets."
Research analysts say the profitability in the market doesn't necessarily lie in the pumps themselves but with the accompanying disposables.
"Some companies are placing free infusion pumps with hospitals and making money through the disposables that go with them," says Dipti Malaviya, a research analyst at Frost and Sullivan.
Large companies with broad product lines have the advantage, the report indicates, because they have the ability to bundle pumps with intravenous solutions and other disposables and then sell the products at discounted prices.
"Companies that manufacture only infusion pumps are at a distinct disadvantage," Malaviya says, adding that smaller companies might consider forging alliances with larger businesses to enable the smaller company to offer lower-priced, packaged solutions.
The key driver for the infusion pump market is accuracy in delivery, particularly with the recent warnings issued by the Oakbrook Terrace, Ill.-based Joint Commission on Accreditation of Healthcare Organizations regarding human error when using the devices, including incorrect dosage, wrong medication and free flow of medicine into patients.
For more information on this report, email Kristi Grier at [email protected].
GAO Suggests Ways to Modernize Medicare's Antiquated Information Systems
WASHINGTON--Without additional government funds and a revamped plan of action, the Centers for Medicare and Medicaid Services will not be able to reach its computer system modernization goals, according to a recent report from the U.S. General Accounting Office.
Since the early 1990s, everyone--from the U.S. Congress to health care providers to CMS itself--has been calling for improvements to the antiquated, user-unfriendly systems that handle such essential functions as beneficiary enrollment and payments to providers, the GAO reported.
But when GAO researchers recently asked CMS analysts to answer basic program management questions, the analysts were unable to compile information quickly "without extraordinary effort." These delays are unacceptable, considering all that is at stake, the report said.
"At stake is the continuation of Medicare's ability to ensure that beneficiaries receive services to which they are entitled, pay health care providers accurately and efficiently, and protect taxpayers from unnecessary spending."
The barriers to modernization are two-fold, the report continued.
First, CMS' current information technology plan "is missing essential detail in certain critical parts," including documentation, information flow and investment evaluation.
Second, CMS lacks the funds to implement improvements. The GAO has suggested that Congress consider allocating more information technology resources to CMS, contingent on the agency's progress in improving overall technical foundations and management capacity.
Specifically, the GAO has recommended that the CMS' administrator and senior managers become more involved in IT planning. In so doing, GAO said, managers will "elevate the priority given to these efforts throughout the agency."
For more information on this report, visit http://www.gao.gov and click on GAO Reports.
Medtrade Attendance Falls Off Minimally
NEW ORLEANS--Although some expected the events surrounding Sept. 11 to have a large, negative impact on this year's Medtrade show, figures released by show management and comments from exhibitors tell a different story.
Attendance at this year's show topped the 21,000 mark, according to Roswell, Ga.-based VNU Expositions, the company that manages the show.
"It's not only was a great order show but also a great relationship show," said Lori Thompson, director of marketing for Carlsbad, Calif-based Sunrise Medical. "It allows us to reach out to the customers we serve, and in those terms, the show was a tremendous success."
And, although there was a dip in attendance from last year--roughly 24,700--most exhibitors felt the attendees at the show were there to buy product, not just kick tires.
"I think it's more quality versus quantity this year," said Bob Zandee president of Sarasota, Fla.-based Harmar Mobility. "We are also really excited about the popularity of the Harmar Grand Prix. We felt Medtrade was an excellent show for us. The buyers were there, and that's the important thing."
Next year's show will return to Atlanta at the Georgia World Congress Center and will be held on Oct. 29-31.
PROVIDER NEWS
Sun Healthcare Prepares to Emerge from Bankruptcy
ALBUQUERQUE, N.M.--To make room for new managers, Sun Healthcare Group's President and Chief Executive Officer Mark Winner, as well as four members of the company's board, have announced their resignations. This is customary, the company says, in bankruptcy proceedings.
Sun's creditors, who will be the majority shareholders when the company emerges from bankruptcy, chose new board members. In turn, the board appointed Richard Matros as chief executive officer and chairman of the board.
According to a reorganization plan that the company filed on Nov. 8, Sun will issue new common stock, of which the company's senior lenders will receive 90 percent and the company's unsecured creditors will receive 10 percent. Existing common-stock holders will receive no distribution under the plan.
Outgoing board members complimented Winner's leadership and said that Winner was instrumental in reaching reorganization agreements with the company's creditors, disposing of under-performing assets, and settling state and federal legal actions.
Matros, who now will take the reins, served as chief executive of Regency Health Services, before Sun purchased Regency in 1997. Currently, he directs several privately held health groups, including CareMeridian and Geriatrix.
MANUFACTURER NEWS
Sunrise's O'Donnell Retires, Kitts Assumes President Role
CARLSBAD, Calif.--Tom O'Donnell, president of Sunrise Medical North America, is retiring after 15 years of service with the company.
"Tom has brought so much to this company and to our customers," said Michael Hammes, president and chief executive officer of Sunrise. "We are fortunate to have had him on the Sunrise team."
Replacing O'Donnell is John Kitts, who joined Sunrise as its vice president of sales for North America in August. No replacement for Kitts position has been named.
"Based on Tom's personal decision, Tom's willingness to assist John in a consultative role, and the speed with which John has adapted to our culture and industry, we are confident that we will be able to execute a smooth transition for both our customers and associates going forward," Hammes concluded.
Allied Healthcare Reports Q1 Loss
ST. LOUIS--Allied Healthcare reported a net loss of $510,086, or 7 cents a share, for the first quarter ended Sept. 30, compared with a loss of $346,540, or 4 cents a share, for the same quarter last year.
?"We feel we are making substantial progress in improving our operations," said Earl Refsland, Allied's chief executive officer. "We continue to devote our efforts to improving customer service, productivity and cost reduction. We have also put substantial effort into new product development and should begin to see introduction of such product in the fourth quarter of this fiscal year."
SOURCES SAY
BETHESDA, Md.--Since the Sept. 11 terrorist attacks, health care has taken a back seat to concerns about national defense and the economy in most Americans' minds, according to a paper published in this month's online edition of Health Affairs. According to an August 2001 public opinion poll, 14 percent of respondents considered health care as one of the two most important issues for the government to address, ranking behind education and the economy. In an October poll, however, only 3 percent of those polled named health care as one of the two most important issues. Sixty-five percent of respondents considered terrorism the most important issue, 46 percent named war and defense issues as important, 22 percent named the economy and 6 percent named education. For the full text of the study, go to www.healthaffairs.org.
WASHINGTON--The U.S. Department of Transportation is making sure that Americans with disabilities are not discriminated against by heightened security measures at the nation's airports, according to the Alexandria, Va.-based American Association for Homecare. The DOT on Oct. 29 issued a fact sheet to large airlines, aviation associations and the National Council on Disabilities detailing acceptable procedures for checking disabled passengers through airline security. According to the fact sheet, despite the ban on curbside check-in at some airports, air carriers must continue to provide assistance to the gate or aircraft from drop-off points. Also, individuals assisting passengers with disabilities are allowed beyond screener checkpoints, and medical supplies and assistive devices do not count toward a carry-on bag limit. For the DOT's complete security screening guidelines for people with disabilities, go to www.dot.gov/airconsumer/01-index.htm.
WASHINGTON--An increasing number of people are using the Administration on Aging's nationwide Eldercare Locator service to find programs and support services to help them care for older members of their families. According to the AoA, the average number of calls to the service increased 15.3 percent from 9,000 each month in 2000 to more than 10,000 each month this year. "Seniors and their families are increasingly turning to the Eldercare Locator as a reliable source of information to improve their daily lives," said Tommy Thompson, secretary of the U.S. Department of Health and Human Services. "The key to this free service is that it puts people in touch with professional aging services in every community across the country." AoA officials said many of the callers are long-distance caregivers who need information on services for relatives living in another town or state and who tend to rely on the Internet to find caregiving resources. For this reason, AoA recently launched an online version of the Eldercare Locator, accessible at www.eldercare.gov. The service also remains available by telephone at 800-677-1116.INDUSTRY BRIEFS
Bannockburn, Ill.-based Option Care has appointed Leo Henikoff to its board of directors. Henikoff is president and chief executive officer of Chicago's Rush-Presbyterian-St. Luke's Medical Center, where he is a professor of Medicine and Pediatrics. He also is president and chairman of the Rush System of Health and president of Rush University.
Old Forge, Pa-based Golden Technologies has hired Charles Copley as sales and marketing manager. Also, the company has added a support services department to its sales and marketing department to manage and operate the company's reporting, Web continuation and co-op programs.
Roswell, Ga.-based Kimberly-Clark has named Joanne Bauer president of the company's health care unit. Previously, Bauer served as vice president of global business management for the unit.
Midmark, Versailles, Ohio, has named Jean Hinker its product manager for its women's health medical products group. Hinker will focus on women's health issues as they relate to capital and diagnostic equipment. Employed at Midmark for 13 years, Hinker most recently as product manager for the company's technical assessment group.Gentiva Health Services, Melville, N.Y., has promoted Gwynne Mesimer to vice president, caregiver resources, where she will be responsible for managing the recruitment, retention and utilization of Gentiva's nurses, therapists and other caregivers. Previously, Mesimer served as area vice president, operations, for the southeast region of the United States.IN OTHER NEWS
Beginning Dec. 31, Medicare contractors and state agencies will no longer accept old versions of Medicare enrollment form HCFA-855, according to the Centers for Medicare and Medicaid Services. Instead, providers seeking to enroll in the Medicare program must use new forms, which are available in PDF format at http://www.hcfa.gov/MEDICARE/ENROLLMENT/forms. The forms must be printed, completed manually and mailed to the appropriate location. CMS plans to provide electronic versions of the forms, which can be completed online, in January.
Yorba Linda, Calif.-based SensorMedics, a subsidiary of Viasys Healthcare, has been awarded a sole-source contract for high frequency oscillatory ventilators, pulmonary and metabolic analyzers, and sleep diagnostic products by national healthcare alliance Premier. Effective immediately, the contract will extend through Sept. 30, 2004.
Somerville, N.J.-based Johnson and Johnson Wound Management, a division of Ethicon, has been granted the worldwide supply, distribution and development rights to Raleigh, N.C.-based Closure Medical's professional wound management product line. The agreement is an amendment to the terms of Closure Medical's existing licensing and development agreement with Ethicon. Terms of the agreement were not disclosed.
Kimberly-Clark, Roswell, Ga., has launched a redesigned Web site at www.kchealthcare.com. The new site features an online catalog for health care professionals.Elyria, Ohio-based Invacare on Nov. 9 received the 2001 Corporate Leadership Award from the Cleveland, Ohio, Chapter of the Association of Fundraising Professionals. The company was recognized for its demonstrated outstanding financial and inspirational commitment to the Cleveland community. Also, Invacare was recognized by a resolution of the Cuyahoga County (Ohio) Commissioners for the company's philanthropic mission and its support of community arts and education.
The Golden Companion II scooter from Old Forge, Pa.-based Golden Technologies took first place in the three-wheel class at the Harmar Grand Prix at last month's Medtrade.
STOCKS
Invacare, Elyria, Ohio, has declared a cash dividend of 1 cent a share on its common shares and 1 cent a share on its Class B common shares, payable Jan. 15, 2002, to shareholders of record on Jan. 2, 2002.
Investment firm Needham and Co. has initiated coverage on Marietta, Ga.-based Matria Healthcare at a "strong buy" rating.
Investment firm UBS Warburg has initiated coverage on Bannockburn, Ill.-based Option Care at a "buy" rating. At the same time, investment firm Raymond James has upgraded Option Care's stock from a "buy" to a "strong buy" rating. And, the American Stock Exchange on Friday launched trading in options on Option Care. The options will trade on the January expiration cycle with initial expirations in December, January, April and July.
Also, investment firm Raymond James has initiated coverage on Melville, N.Y.-based Gentiva Health Services at a "strong buy" rating.
system for HME distributors and IV Therapy providers.
