VALLEY FORGE, Pa., and SPRINGFIELD, Ill. – AmerisourceBergen will purchase H.D. Smith for $815 million in cash, the two companies have announced.
H.D. Smith is among the largest wholesalers in the country, providing a full line of brand name, generic and specialty drugs from 10 distribution centers across the U.S.
“The acquisition of H. D. Smith strengthens our core business and expands and enhances our strategic scale in U.S. pharmaceutical distribution,” said Steven Collis, chairman, president and CEO of AmerisourceBergen, a provider of pharmaceutical products that generates more than $150 billion in annual revenues.
H. D. Smith subsidiaries Triplefin, a pharmaceutical brand support provider, and Arete Pharmacy Network, a pharmacy services administrative organization, are not part of the acquisition.
AmerisourceBergen plans to fund the acquisition through the issuance of new long-term debt.
The acquisition is expected to be slightly accretive to AmerisourceBergen’s adjusted diluted earnings per share in fiscal year 2018, and be about $0.15 accretive to adjusted EPS in fiscal year 2021.
For fiscal year 2018, AmerisourceBergen now expects revenue growth to be in the range of 8% to 11%, adjusted operating income growth to be in the range of 4% to 7%, and operating growth income for its Pharmaceutical Distribution Services segment to be in the range of 4% to 7%.
The acquisition is subject to regulatory review and other closing conditions, and is expected to close in early calendar 2018.
WASHINGTON – The standard monthly premium for Medicare Part B enrollees will be $134 for 2018, the same as 2017, CMS has announced.
Some beneficiaries who were protected from Part B premium increases in prior years will have increases in 2018, but they will be offset by the increases in their Social Security benefits next year, CMS says.
“Medicare’s top priority is to ensure that beneficiaries have choices for affordable, high-quality care that fit their needs,” said CMS Administrator Seema Verma. “Next year, no beneficiary protected by the hold-harmless provision will see a Part B premium increase that is greater than the increase in their Social Security benefits. We encourage Medicare beneficiaries to explore their options to make an informed choice between original Medicare and Medicare Advantage before Open Enrollment ends on Dec. 7.”
The average monthly premium for Medicare Advantage enrollees will drop to about $30 in 2018, about a 6% decrease compared to 2017, CMS estimates. More than 77% of Medicare Advantage enrollees remaining on their current plans will have the same or lower premiums for 2018, the agency says.
The annual deductible for all Medicare Part B beneficiaries will be $183 in 2018, the same as 2017.
BALTIMORE – CMS did not always follow its own procedures and federal requirements for awarding competitive bidding contracts consistently, according to a new report from the Office of Inspector General.
CMS did not follow the bid process consistently for 23 of 215 winning suppliers, the OIG found.
Breaking it down, the agency awarded contracts to 10 suppliers that did not meet financial statement requirements and 13 suppliers that did not have the required license in at least one competition, according to the OIG.
The inconsistencies affected 99 of the 240 sampled single payment amounts, the OIG found.
Additionally, CMS did not monitor suppliers in accordance with established procedures and federal requirements for another 31 suppliers. These suppliers did not maintain the applicable license required by their contract for the last six months of 2013, according to the OIG.
With these errors, CMS paid suppliers $182,000 less than they should have, or less than .03% of the $553.7 million paid under Round 2 during the last six months of 2013, the OIG estimates.
The report recommends that CMS follow established program procedures and federal requirements consistently; ensure that suppliers have the required licensure; and monitor supplier licensure requirements by implementing a system to identify potential unlicensed suppliers.
MADISON HEIGHTS, Mich. – InfuSystem has shifted its focus from expanding its fleet of infusion pumps to improving collections, and it’s starting to pay off, says Gregg Lehman, executive chairman of the board.
The infusion provider reported net revenues of $17.6 million for the third quarter of 2017, a 2.1% increase compared to the same period in 2016.
“We are making solid progress on our collection efforts,” said Lehman on a recent earnings call. “For the foreseeable future, our task is to focus on our existing business and managing it as well as possible.”
InfuSystem reported a net loss of $0.1 million for the quarter this year compared to a net income of $0.1 million for the same quarter last year. Breaking down revenues, rentals increased 4.7% to $15.3 million and sales decreased 12.4% to $2.3 million. The provider reduced debt by $2.9 million in the quarter.
Going forward, InfuSystem is reviewing existing customers and lines of business, and plans to pursue new opportunities in its infusion products and pain management businesses, says Lehman.
“I am pleased we continue to win new business and grow our market share in a responsible way,” he said.
The third quarter was the first full quarter under an executive management reorganization in May that created a temporary “Office of the President” led by Lehman, and consisting of two directors and three senior management team members.
“We are happy with how the office is working as demonstrated by improvements in our financial results,” said Lehman. “Our initial plan was to operate under this structure through the end of the year, but no decision has been made.”
WASHINGTON – AAHomecare’s Complex Rehab and Mobility Council this month published a short white paper that outlines the differences between complex rehab and standard mobility products in grids and photos.
While industry stakeholders have published other materials highlighting the specialized nature of complex rehab, this three-page paper also highlights the benefits of standard mobility, says Chairwoman Nancy Froslie.
“We wanted to show the importance of both,” said Froslie, an ATP and the rehab manager at Sanford HealthCare Accessories in Jamestown, N.D. “We didn’t want it to come off that one was more important than the other. Different patients have different needs.”
The main element of the paper is a grid that outlines the patient population, length of need, configuration, positioning capacity and pressure management, and prescribing and fitting process for four categories of products: standard manual wheelchairs, CRT manual wheelchairs, standard power wheelchairs and CRT power wheelchairs.
The council envisions providers using the paper to, among other things, explain why accessories for complex rehab manual wheelchairs should be exempt from competitive bidding. The paper includes a grid with photos of both basic and complex accessories.
“Being able to see the differences between the two in a picture—to me, that’s really important,” Froslie said. “It’s representative of how the products are used.”
The council also envisions providers using the paper to advocate for a separate benefit for complex rehab, and for fair coverage and reimbursement with non-Medicare payers.
“We wanted something that, even though we’re targeting Medicare, was broad enough to be a tool for other payers,” said Ashley Plauche, manager of government affairs for AAHomecare. “It could even be used in a clinical setting or with patients to help them better understand what their options are.”