In brief: Invacare’s ‘fresh start,’ AdaptHealth leadership change,

In brief: Invacare's ‘fresh start,’ AdaptHealth leadership change, POC warning

News

By HME News Staff

Updated 11:21 AM CDT, Wed May 10, 2023

ELYRIA, Ohio – Invacare announced May 8 that the company, as well as its two U.S. subsidiaries, Freedom Designs and Adaptive Switch Laboratories, successfully emerged from Chapter 11 bankruptcy on May 5.

The news comes about three months after Invacare filed for Chapter 11.

"This marks the start of a new era for Invacare," said Geoffrey P. Purtill, president and CEO, who will continue to lead the company. "With Chapter 11 behind us, we look to renew our commitment to operational excellence and drive profitable long-term growth in our core lifestyle and mobility & seating product categories. Invacare is well-positioned to capitalize on global tailwinds in the markets we serve. We continue to manufacture and deliver vital health care products to our customers and each day focus on our purpose of Making Life's Experiences Possible® for our end-users. Importantly, I want to express my gratitude to our associates for their unyielding commitment to Invacare. We now have a fresh start and a great opportunity to reshape the business for the future and realize our long-term growth potential."

Invacare's Chapter 11 plan for reorganization was approved by the U.S. Bankruptcy Court for the Southern District of Texas on April 28, according to a Form 8-K filed on May 2.

As part of its financial restructuring, the company successfully recapitalized its balance sheet through various transactions, including:

Equity rights offering: The company successfully executed a $75 million rights offering of new common stock and 9% Series A convertible preferred stock.

Exit term loan facility and secured convertible notes: The exit capital structure will consist of an exit term loan facility of $85 million and 7.5% exit secured convertible notes of $46.5 million, maturing in 2028.

Asset-based lending (ABL) facility: Finalized new North America ABL credit facility with borrowing capacity of up to $40 million, of which $13.4 million was borrowed on emergence.

Upon emergence, Invacare used the proceeds from the rights offering and the ABL facility to repay $35.5 million of the debtor-in-possession (DIP) term loan and $13.8 million of the DIP ABL facility. In addition, it will use the proceeds for general corporate purposes, including working capital and payment of restructuring professional fees. The financial restructuring enabled the company to extinguish $223 million of principal and unpaid interest related to unsecured 2024 Series I, 2024 Series II and 2026 convertible notes.

"We are pleased to have secured new financing, which will provide additional flexibility," said Kathy Leneghan, senior vice president and CFO. "With a sustainable capital structure and enhanced balance sheet, we can now fully focus our efforts on executing our global transformation plan."

Invacare has also announced a new board of directors led by Steven H. Rosen, co-founder and co-CEO of Resilience Capital Partners LLC, who will serve as chairman, and Purtill, who continues to serve as a director. Newly appointed directors are:

Marec E. Edgar, president & CEO of A.M. Castle & Co.

Abraham T. Han, managing director of GLC Advisors & Co.

Peter J. Kuipers, executive vice president & CFO of Omnicell

Kimberly S. Lody, former president and CEO of Sonida Senior Living

Randel G. Owen, former president and CEO of Global Medical Response

Steve Griggs to step down

PLYMOUTH MEETING, Pa. – AdaptHealth CEO Stephen Griggs will step down effective June 30.

Griggs joined AdaptHealth in 2021 following its acquisition of AeroCare Holdings, which he founded in 2000 and led as president and CEO until the acquisition. Under his leadership, AdaptHealth added key vendors, launched cross-selling initiatives, integrated its cloud-based workstreams and pioneered e-prescribe, e-ordering and e-delivery services.

"On behalf of the board, I thank Steve for the critical leadership role he has played at AdaptHealth to help build a market-leading provider of sleep, diabetes, respiratory and other health care solutions," said Richard Barasch, chairman of the board. "As CEO, he has led the company through the successful integration of AdaptHealth and AeroCare, overseen more than two dozen acquisitions and helped us navigate the challenges of the COVID-19 pandemic, the CPAP shortage resulting from the Philips recall and other market headwinds. Steve leaves AdaptHealth in sound financial condition and much improved operational shape, and we are committed to finding a highly qualified candidate to capitalize on the strategic opportunities that will power the next stage of the company's growth."

The board is working with a leading executive search firm to identify a new CEO and is considering several qualified candidates. Barasch will serve as interim CEO if the company has not appointed a successor to Griggs by the time of his departure. Griggs will not seek re-election to the board at the company's forthcoming annual meeting in June.

"I am proud to have worked with the most talented individuals in the industry to deliver on our vision of transforming the health care experience for patients by helping to keep them healthy at home," said Griggs. "Now is the right time for a new leader to build on our strong foundation of cost-effective, scalable technology and established, trusted patient relationships. I look forward to working with Richard, the board and our leadership team to ensure an effective transition."

Viemed's core business soars

LAFAYETTE, La. - Viemed reported net revenue attributable to its core business was $39.6 million for the first quarter of 2023, a 31% increase compared to the same period in 2022 and a new company record.

Total net revenue increased 6%.

"Our recently announced operating results demonstrate that the core business is firing on all cylinders," said Casey Hoyt, Viemed's CEO. "We are excited to amplify our robust organic growth through accretive acquisitions that create powerful revenue synergies, diversify our offerings, and build upon strong relationships with stakeholders. Our recent acquisition initiatives are the natural progression of strategic investments that create a better experience for patients, physicians, and payors, and will ultimately allow us to expand care to those in need."

Viemed recently announced plans to acquire Home Medical Products in Tennessee, a large regional provider of respiratory focused home medial solutions with annual net revenue of about $28 million in 2022.

Other financial results:

Net income of $1.5 million

Adjusted EBITDA of $8.3 million, a 15% increase

39% increase in cash balance to $23.5 million

Viemed expects to generate net revenue attributable to its core business of about $40.2 million to $41.2 million during the second quarter, excluding the impact from any acquired revenues during the period.

PFF issues warning about non-prescription supplemental oxygen

CHICAGO – The medical advisory board of the Pulmonary Fibrosis Foundation (PFF) has issued a position statement on non-prescription supplemental oxygen that advises the patient community to use only devices approved by the U.S. Food and Drug Administration as prescribed by their doctor. The PFF warns that patients should not purchase an oxygen supply device without a prescription from a health care provider because doing so may lead to serious health problems. It also warns non-FDA approved oxygen delivery systems may not reliably deliver oxygen. "Supplemental oxygen therapy is necessary and beneficial to many people living with PF," said Dr. Amy Hajari Case, senior medical advisor for education and awareness for the PFF. "Oxygen users often prefer portable oxygen concentrators (POC) so they can remain active and mobile. Unfortunately, existing POCs have limitations such as short battery life and inadequate oxygen flow. However, non-FDA approved portable oxygen concentrators available online are not the solution. Patients should always speak with their health care provider before any out-of-pocket purchase of a portable oxygen concentrator." In February, the PFF joined with 23 other patient, professional and industry groups to advocate for patient-centric legislative changes to supplemental oxygen supply and reimbursement. The PFF's efforts to advocate for improvements in access to oxygen are ongoing. To review the full statement, click here.

Kit Shellhouse rejoins OAMES board

ATLANTA – The van Halem Group has announced that Kit Shellhouse, director of business development, has been named as an associate board member of the Ohio Association of Medical Equipment Services (OAMES). "Serving as an associate board member for OAMES is a privilege," Shellhouse said. "To fight for our patients, state associations must continue to play a vital role in the business. Supporting providers from a local level to Capitol Hill on a state and national level is essential." Shellhouse has regularly attended and spoken at OAMES meetings and conferences. She was also an associate board member in the past, as an employee of ECS Billing & Consulting North, which was acquired by ACU-Serve.

CareCentrix adds accreditation

HARTFORD, Conn. - CareCentrix has achieved Accreditation in Utilization Management from the National Committee for Quality Assurance (NCQA). This accreditation focuses on consumer protection and improvement in service to customers. It recognizes that organizations have open access networks and can improve service quality and utilize customized structures to meet purchaser needs. "CareCentrix is committed to coordinating the right patient care at the right time from hospital to home, and we’re proud that this NCQA Utilization Management Accreditation validates our efforts," said CEO Steve Horowitz. "It is tremendously important to effectively manage care, and our approach factors in the whole person to ensure everyone gets the care experience that will best mee their needs." CareCentrix coordinates multiple, complex home care needs for more than 19 million members through a national network of about 7,400 provider locations. The company, which employs 1,900 people across the country, is a wholly owned subsidiary of Walgreens Boots Alliance.

Parachute Health providers support for its renewal functionality

PRINCETON, N.J. – Seventy-two percent of orders for DME were signed in a median time of 38 minutes, according to data from the first year of prescription renewal functionality in the Parachute Health platform. Renewals by Parachute is the newest product offering from the company, featuring flexible support for creating any DME prescription requiring a clinician's signature and a dashboard to monitor signature requests with a live data feed to support real-time feedback. The offering also features automated digital opt-in invitations for Brightree users. "At Brightree, we are dedicated to providing health care providers with the necessary tools to offer exceptional patient experiences, and our partnership with Parachute Health is a testament to this commitment," says Nick Knowlton, vice president, strategic initiatives, at ResMed, which owns Brightree. "Together, we aim to streamline the complex resupply process, while keeping patients engaged and informed every step of the way." For providers that already use Brightree's SNAP, all referrals receive prescription renewal requests: by email/SMS if they have opted in, and otherwise by fax — with an invitation to complete the prescription digitally and opt into e-prescribing. Parachute Health's platform is used by a network of more than 2,400 supplier locations and 160,000 e-signing health care providers across more than 54,000 facilities in all 50 states.

AOM names new CEO

CHARLOTTE, N.C. – AOM Infusion, which provides home-based intravenous immunoglobulin IVIG therapy to patients with more than 80 different chronic conditions, has named Keyur Mehta as CEO. Christopher York will continue in his position as chairman of the company. "Keyur is an experienced specialty infusion executive and we have been impressed by his operational and team building capabilities," said Petri Lindberg, Principal at Ridgemont Equity Partners, which bought AOM in 2022. "We look forward to continuing to execute AOM's strategic business plan under Keyur's leadership." Mehta brings more than 25 years of experience in health care, primarily within the alternate site infusion and specialty pharma industries. He has been an entrepreneur in the infusion pharmacy and health care consulting spaces and has held executive roles in both public and private companies, including DaVita, Option Care Health, BioScrip and InfuScience. Mehta joined AOM in 2022 as COO and quickly forged a strong partnership with the company's executive leadership team, as well as the investment team at Ridgemont. Under his leadership, the company has increased its payer network and expanded its therapeutic offerings, while continuing its growth as a leading provider of IVIG infusion therapy. "There is a significant opportunity for AOM to further expand our services into new markets and therapies as patients increasingly opt for at-home and ambulatory treatment options," he said. "The entire team at AOM has done a remarkable job positioning the company for success. I am energized and excited about our Company's future and look forward to building on AOM's exceptional track record."

AdaptHealth, Invacare, Portable Oxygen Concentrator, Steve Griggs