-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kp08/QzpVF2q1n+4DgtPZJqCj+sMPwGMx1n9QpBBvfRDOi4gP6f9zJGRiMvqwPlB Z/WsgxpnMgqOyNIO6D2aSg== 0000742112-06-000023.txt : 20060925 0000742112-06-000023.hdr.sgml : 20060925 20060925105520 ACCESSION NUMBER: 0000742112-06-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060925 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20060925 DATE AS OF CHANGE: 20060925 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVACARE CORP CENTRAL INDEX KEY: 0000742112 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 952680965 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15103 FILM NUMBER: 061105752 BUSINESS ADDRESS: STREET 1: ONE INVACARE WAY STREET 2: P O BOX 4028 CITY: ELYRIA STATE: OH ZIP: 44036 BUSINESS PHONE: 4403296000 8-K 1 sep258k.txt SEP 25 2006 RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): September 25, 2006 INVACARE CORPORATION -------------------- (Exact Name of Registrant as Specified in its Charter) OHIO ---- (State or Other Jurisdiction of Incorporation) 0-12938 95-2680965 ------------------- ------------------- (Commission File No.) (IRS Employer Identification No.) One Invacare Way, P.O. Box 4028, Elyria, Ohio 44036 ---------------------------------------------------- (Address of Principal Executive Offices) (440) 329-6000 -------------- (Registrant's Telephone Number, Including Area Code) - -------------------------------------------------------------------------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 204.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 7.01.Regulation FD Disclosure. On September 25, 2006, Invacare Corporation issued a press release responding to uncertainty resulting from an oxygen report issued by the Office of Inspector General. The press release is furnished herewith as Exhibit 99.1. Item 9.01.Financial Statements and Exhibits. (d) Exhibits Exhibit 99.1 Press release dated September 25, 2006. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Invacare Corporation By: /s/ Gregory C. Thompson --------------------------- Gregory C. Thompson Chief Financial Officer Date: September 25, 2006 EX-99 2 exhibit99.txt EXHIBIT 99.1 Exhibit 99.1 News Release Contact: Investor Inquiries Gregory C. Thompson 440-329-6111 Media Inquiries Lara L. Mahoney 440-329-6393 INVACARE CORPORATION RESPONDS TO UNCERTAINTY RESULTING FROM OXYGEN REPORT BY THE OFFICE OF INSPECTOR GENERAL ELYRIA, Ohio (September 25, 2006) - On September 14, 2006, the Office of Inspector General (OIG) issued a report regarding Medicare spending on home oxygen equipment, which has resulted in substantial confusion among home medical equipment (HME) providers. The two objectives of the OIG report were to (1) compare Medicare spending for oxygen concentrators with the supplier's average purchase price and (2) determine the nature and frequency of servicing for concentrators and portable equipment. Through its findings, the OIG report supports capping oxygen payments at 13 months instead of the current 36 months. However, the OIG report only looks at the cost of oxygen concentrators, even though equipment represents only 28% percent of the providers' costs of providing home oxygen therapy. The Morrison Informatics study, which has been widely circulated on Capitol Hill, effectively explains that over 70 percent of a provider's costs are not related to the equipment acquisition, but to servicing the patient. This is a key message that is being explained to as many members of Congress as possible. The Morrison Informatics study is based upon more than 600,000 Medicare beneficiaries, while the OIG report looks at only 150 Medicare beneficiaries. Importantly, the OIG report acknowledges that it addresses neither the cost of providing services nor such ancillary expenses as billing, processing physician's orders, regulatory compliance and equipment maintenance outside the home. The OIG also states that "because Medicare does not require uniform documentation of oxygen services provided, there is no efficient way for the OIG to accurately measure these services." As a result, the OIG has completely ignored the services, completely undermining any conclusions about costs providers incur. Since the issuance of the report, there has been substantial confusion among HME providers regarding how long Medicare will make monthly rental payments for home oxygen therapy. At this point, Invacare Corporation (NYSE: IVC) believes the current Congress will not reduce the existing cap below 36 months. Should reimbursement rules change in the future, these revisions would not be effective on a retroactive basis. Moreover, existing patients would likely be grandfathered under the current system. The Company's prediction at this time is that the most likely change in Medicare payment for home oxygen will be the Centers for Medicare and Medicaid Services' (CMS) plan to change payment for home oxygen to a modality specific reimbursement system. This may happen as early as January 2007. Under CMS' proposed rule, Invacare's HomeFill Oxygen System will be reimbursed at the highest level. This implies that CMS wishes to encourage providers to make newer technology available to patients. Further, while the OIG report is by all accounts seriously flawed in many respects, it did state that portable oxygen is currently under-reimbursed. This opens the door to discussions with policy makers about increasing reimbursement for portable oxygen therapy (i.e., HomeFill). Invacare Corporation (NYSE: IVC), headquartered in Elyria, Ohio, is the global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles. The company has 6,100 associates and markets its products in 80 countries around the world. For more information about the company and its products, visit Invacare's website at www.invacare.com. ### -----END PRIVACY-ENHANCED MESSAGE-----