Invacare is seeking injunctive relief and suing Drive Medical for alleged patent infringement related to it’s bed products as well as it’s rollator.

Invacare had previously announced in one of it’s presentations that it would be focussing more on protecting it’s intellectual property and this action may well partially stem from this.

As more and more companies (like Invacare, Drive and others) seek to compete in the highly cost competitive “national competitive bidding” environment, and in addition increasingly source product from China and other Asian countries there are bound to be more disputes of this nature.

With Invacare shares trading at the psychological level above $20 for the first time (in a long time), far out performing the S&P 500, you have to ask whether the base US homecare market is in turnaround mode (despite competitive bidding, Chinese direct market entrants etc) – or is it just Invacare’s perseverant ability in a tough US market to out-perform?

Check out the chart

Source: Medcity interview by Mary Vanac

She asked Mixon:

Q. What do you think about the proposal for a government-backed health insurance plan?
A. I believe in the free market. But I think there are people who … aren’t faring well under capitalism. I think Americans feel that no one should be left out.

Q. How might a government health-care plan affect Invacare?
A. Invacare does business in 80 countries. Canada and England are government-run health care systems. We do very, very well well in those countries. And the home-care reimbursement [there] in many cases is better than they have in America.

So do other homecare companies – it’s hard to argue with the above, except to add that most European countries actively support their citizens and their health, be it at home or otherwise. They also have competitive bidding programs similar to the US proposal (for example Germany) but the governments ensure a basic fundamental right to healthcare for all their citizens – no matter what – it’s the law.

Kinda neat?

Press release:

ELYRIA, Ohio–(BUSINESS WIRE)–Invacare Corporation (NYSE: IVC) has been named to FORTUNE Magazine’s 2009 FORTUNE 1000, ranking 983. The FORTUNE 1000 list is an annual ranking of America’s 1000 largest corporations based on revenue.
[Read more →]

Invacare Dedicates Site To Paralympics.

The story and the argument is not particularly new. What is somewhat new is the direct and stern criticism leveled directly at certain companies that the New York Times allege directly benefit from this delay. They name Invacare, Pride, Praxair and the Scooter Store and criticize Invacare’s Cara Bachenheimer who they allege does not want to see any substantive changes to the current system.

At the hub of the issue is the fact that consumers can purchase (according to the Times) – for example – a walker on the internet for about half the price of what national insurer Medicare (and therefore (directly / indirectly) the tax payer) pays.

It is true that in several cases the internet price of products is less expensive than the Medicare price. It is also true that the internet does not particularly serve well 90 year olds with Alzheimer’s or other incapacitating conditions who have no idea how to use the internet.

Unfortunately there have been documented cases of Medicare issues which have not helped the industry. Although it has changed somewhat, the industry has also not been able to get its act together in terms of a plan that makes sense to all. This continues today in some cases for example with the Scooter Store recommending that even higher specified products should be part of the competitive bidding process. Much to the chagrin of several industry stalwarts.

Adversity has made for strange bed fellows and time will tell if the new industry initiative will prove effective.

(In an unrelated event, Dan Meuser, President of Pride and former Republican candidate, will be hosting a Sen. John McCain lunch on July 23).

Update:

New York Times Opinion piece continues the onslaught “Medicare Savings vs The Lobbyists” – perhaps in part referring to the disclosure of a major homecare company spending $230,000 on lobbying in Q1.

If you would like to see our related post referring to the Office of the Inspector General and their report it is here – Pricing vs Reimbursement In The Homecare Industry – And The Competitive Bidding Solution

And a quick rebuttal from AAHomecare which actually is a little challenged in terms of winning this fight. You decide.

Robert K. Gudbranson has been appointed to the position of senior vice president and chief financial officer. He rejoins Invacare after a stint at Lincoln Electric. He formally held the positions of Investor relations, business development director as well as being based in Europe where he was CFO.

Press Release