Drive Medical To Acquire Dr K
In an effort to compete more effectively with industry leaders Invacare and Sunrise Medical, Drive Medical Design & Manufacturing in November began the process of acquiring its fourth company in the past 2 years. The DME manufacturer, based in Port Washington, NY, is scheduled to close the acquisition of Dr K International Trading Co Inc, a Los Angeles manufacturer of durable medical products, this month.

The principals of Dr K, Ara Karamanoukian and Michael Serhan, will join the executive management team of Drive Medical.

Following the completion of the acquisition, the customer service centers of Drive Medical and Dr K will remain fully operational. The sales representatives of both companies will continue to handle their respective product lines. Together, Drive Medical and Dr K will offer all the products to which customers have become accustomed, including wheelchairs, hospital beds, bathroom safety products, ambulatory products, respiratory equipment, electrotherapy equipment, and power wheelchairs.

HME Insider

Jay Williams Dan Gerst In his 13 years of attending Medtrade, Jay Williams, national sales manager for HME at software and hardware provider QS/1 Data Systems, has never seen a bigger show than the one this past October. Despite increased requirements under the Health Insurance Portability and Accountability Act (HIPAA) and highly regulated Medicare spending, the industry continues to grow. At the company’s booth at Medtrade, Dealer/Provider sat down with Williams and Dan Gerst, marketing operations manager at QS/1, based in Spartanburg, SC, to find out why they think home health care businesses stay afloat and multiply. Q Why are providers still entering the industry in light of increased government regulations (with HIPAA) and increasingly regulated Medicare spending? A Gerst: The medical industry or the health care industry is one of the only industries that has been hiring in the last year. That’s why I think we’re seeing events like this that are so big and doing well. Williams: On top of that, you have people in the pharmacy business and the HME business who are looking beyond next year or even the following year. In another 10 or 15 years, the Baby Boomer wave is going to hit retirement age and they’re going to be covered by Medicare, so providers have a huge possibility for a real up-kick in their potential client base. I think a number of providers are realistic enough to know that if they’re going to get into the business, they need to understand the business first and be ready for that upsurge. People who retire at 65-plus are living longer. That’s why the chain companies continue to grow; they know the marketplace is going to be there. And when the big guys are doing it, I think the little guys are saying, “If it’s good enough for the big guys, maybe it’s good enough for me, too.” Gerst: As long as there’s profit. That’s what drives people moving into a market. People wouldn’t be moving into this market if there wasn’t any profit there. Q Is there anything that might restrict that potential growth? A Williams: Nothing as long as we don’t end up with competitive bidding. I think the industry could survive a 7-year freeze on consumer price index. I think competitive bidding could be a death knell for this business. You would end up with the Aprias, the Rotechs, the Lincares, and American Home Patient running 90% of the business. Most everybody else would be either out of business or stuck out in rural America trying to do business and fight for what’s left of the pie out there. And I’m not sure Congress is calculating the cost of how many people would be unemployed if it does that. It could be very detrimental to all these people. That’s why I think the Senate version of the Medicare reform bill has the more favored view in freezing the prices. Who knows what’s going to happen.

Permobil Steps Up to Certification
In September, 17 members of Permobil Inc’s sales staff earned the Assistive Technology Practitioner (ATP)/Assistive Technology Supplier (ATS) credential, bringing the company’s total ATP/ATS-certified staff count to 28.

“We are requiring all of our sales people to get certified by RESNA [Rehabilitation Engineering & Assistive Technology Society of North America],” says Vice President of Sales and Marketing Tom Rolick, who was among those who recently passed the RESNA ATS examination administered in Nashville, Tenn. “In addition to our sales representatives, I’m pleased to say that our sales managers, John Richards (Eastern United States), John Coffay (Western United States), Julianna Arva (pediatrics), and Bob Fitzgerald (product group), are all RESNA certified.”

The Lebanon, Tenn, manufacturer of power mobility systems also is in the process of requiring providers of its products to have certified staff members, according to Rolick.

Free Booklet Offers Supplier Sales Strategies
Altimate Medical Inc, the Morton, Minn-based manufacturer of the EasyStand and Ovation standing products, has designed a free school resource booklet for Rehab Technology Suppliers on selling assistive technology in schools. Titled Pioneering Standing Into Schools: A Rehab Technology Supplier’s Guide for Selling in Schools, the booklet covers topics such as: getting the appointment, giving a powerful in-service, justifying the need for the product, understanding funding issues, and overcoming the challenges. To request a copy, contact Altimate Medical at (800) 342-8968.

Inogen Gains Clout with Fary
Robert Fary, former director of respiratory services at Apria, and Dealer/ Provider editorial advisory board member, has joined Inogen as its vice president of sales. In his tenure at Apria, Fary won both the American Respiratory Care Foundation Invacare Award for Excellence in Home Respiratory Care and the HME Excellence Award. The young Santa Barbara-based Inogen, which is currently seeking market approval for a new oxygen concentration device, says a person of Fary’s stature joining the company is an indicator of the legitimacy of its technology.
“[Fary’s] experience and understanding of the respiratory health industry has earned him international respect,” says Inogen CEO Kathy Odell. “We are delighted that he recognized tremendous potential in Inogen.”