Citing rising costs of raw materials and fuel, Invacare officials will increase freight fuel charges from $14.95 to $24.95 on June 1, 2008. In addition, the Elyria, Ohio-based company will raise prices on select HME products and parts effective July 1, 2008.

In a letter to customers dated May 9, 2008, Invacare officials point out that the cost of steel has increased 89%, aluminum 18%, copper 30%, and lead 150%—all on top of double-digit increases already absorbed in 2007. “Today, diesel fuel is over $4 a gallon, while gasoline is averaging more than $3.50 a gallon—a 50% and 63% increase respectively from just a year ago,” write Carl Will (pictured), group VP of Invacare HME, and Chris Yessayan, VP and GM for Invacare iPartner Solutions. “The impact of these pressures [including the declining value of the US dollar] affects individuals and their households, as well as nearly every business and industry, including Invacare and the HME industry.”

Why have raw materials gone up recently in the global market? According to Will, increased demand is the primary engine. "We obviously look for the best commodity prices available to us and are confident that our costs in these areas are as low or lower than those available to our competitors," says Will. "While there are numerous explanations for the rise of commodity prices, worldwide demand continues to rise and has a direct impact on prices. Commodity prices are only one factor that influences the price of our
products. Labor, currency, and indirect costs also have an impact."

The letter reminds customers that Invacare has implemented numerous cost reduction strategies across all of its businesses, and throughout its entire supply chain. While officials say the cost reduction strategies have benefited providers, they acknowledge that the global economic pressures make the price increases necessary. “We are all trying to find the new ‘normal’ in this industry, and our manufacturing partners are no different,” says Tim G. Pederson, ATS, CEO of WestMed Rehab Inc, Rapid City, SD. “Invacare is not the first, nor will they be the last, to add fuel surcharges to offset the spiral in fuel and raw materials costs.”

Yessayan and Will say that Invacare will continue to invest in programs such as Invacare ® Xpress, Invacare® 5 Star Service Plan and Bonafide software solutions with more services to come, including accreditation, competitive bidding, and HME business-building consultation services. "Through our new Invacare iPartner Solutions business...we are introducing services and programs that will help providers simplify their business, reduce costs, optimize their assets, and improve their bottom line," says Will. "These solutions, combined with the Invacare Xpress product portfolio will help providers reduce their operating costs to allow them to continue to serve their beneficiaries and enjoy a healthy business. We are ready to help providers that are ready and willing to help themselves."

Will says new products and technologies such as Invacare’s HomeFill, and new XP02 portable oxygen concentrator, will also help providers to significantly reduce the costs of servicing oxygen patients. "Our new line up of rehab products offer more functions, features, and applications than ever before," adds Will, "yet remain cost competitive."