Oxygen.
The most abundant element on earth.
The element that
makes earth habitable.
More than 10 million Americans suffer from Chronic Obstructive Pulmonary Disease (COPD), the fourth leading cause of death in this country. And if you wonder what COPD means in personal terms, the American Lung Association’s special support program for those dealing with this condition is called Hungry for Air.
It is estimated that 500 to 2,000 Cape Codders requite oxygen support, the disparity in numbers resulting from the fact that perhaps 1,000 of the larger number receive their oxygen supply not as individuals, but through institutions such as nursing homes.
That’s why what appeared to be a simple business transaction when Cape Cod Healthcare recently sold off its Cape & Islands Oxygen & Supply division to Cape Medical Supply of Sandwich and Hyannis is of more than casual interest. CCHC’s Personal Care Center in Falmouth, which provides home medical supplies, also was part of the transaction.
And, actually, it was more than “a simple business deal”. According to industry sources, CCHC has been trying to divest itself of the oxygen component for about a year as part of its effort to concentrate on what Stephen L. Abbott, President and CEO of Cape Cod Healthcare, described as its “core services.”
Mr. Abbott added, “We are happy to have a locally-owned and controlled company assume the responsibility for the Cape Cod community’s home medical equipment needs.”
He said Cape & Islands Health Services II, Inc. will continue to exist as an entity of CCHC with operations primarily related to C-Lab.
Several months ago, CCHC almost had an agreement with a national organization, Lincare. It fell through, but not before Cape Medical Supply publicly reported it as a done deal. This led to some hard feelings, including talk of legal action, but Cape Medical Supply and its general manager, Gary Sheehan, not only apologized, but then persevered to complete a transaction that kept C&I Oxygen in local hands. No details of the sale were announced.
“We have worked hard to ensure that patient care and services continue without any noticeable changes,” said Mr. Sheehan, whose parents founded the company out of their Mashpee home in 1977. “This has been working well for us…and the patients.”
Mr. Sheehan said his company has added seven new employees—four of them from the CCHC operation—to handle the extra case load.
In addition to Cape Medical Supply, home oxygen suppliers on the Cape consist of Foley Medical Supply of South Yarmouth, West Gate Home Health Care of Hyannis and Denmark’s Home Medical Equipment with outlets in Pocasset, Orleans and Falmouth. The first two are locally owned, Denmark’s is now operated out of New Bedford.
Jim Foley, proprietor of the company that bears his name, commented that the sale “seems like a natural progression for their (CCHC’s) main mission, which is institutional care…and it’s probably a good fit for the new owners as well.”
While Cape Medical Supply obviously has picked up the bulk of C&I Oxygen’s patient list—“The numbers are terrific,” according to Mr. Sheehan—some of the fallout has shifted to Foley Medical Supply.
The two independent suppliers agree in one area. “The acquisition provides patients with more flexible options,” Mr. Sheehan declared and Mr. Foley commented, “It helps when people know they have a right to choose.”
While it’s comforting to Cape Codders to know that their oxygen supplies remain in local hands, there remain some dark clouds on the national horizon.
Besides shrinking reimbursements, new Medicare regulations being considered in Congress seriously threaten patients’ well-being. One, which has been mentioned before, would eliminate Medicare reimbursement for portable oxygen…even for trips to obtain medical treatment. “This would create a new class of shut-ins,” Mr. Foley warned.
Another new threat, he pointed out, would authorize Medicare reimbursement for home oxygen for only three years. Oxygen suppliers, Mr. Foley said, are opposing both suggestions.