Work Suspension at Invacare Proposed
The Food and Drug Administration (FDA) has proposed a consent decree requiring suspension of work at Invacare’s Elyira, Ohio manufacturing facility as a result of violations found during their latest inspection of the facility.
The proposal will stop certain operations until the facility is in compliance with FDA requirements. The company plans to discuss with the agency the terms of the consent decree. Meanwhile, investigations into Invacare have been started by law firm Kahn Swick & Foti LLC, a firm focused on securities class action & shareholder derivative litigation, and its partner, former Louisiana Attorney General Charles Foti Jr.
After the FDA announcement, Invacare’s stock (IVC) dropped 29 percent to $14.70 at the close of trading on Dec. 8. This is the biggest single-day decline of the company since Dec. 27, 1984. Since then, IVC stock has remained between $15 and $16.
Cramton Criticizes NCB at a Congressional Briefing
University of Maryland Professor Peter Cramton itemized his concerns about Medicare’s national competitive bidding program for home medical equipment at a briefing for congressional staff. The professor mentioned three flaws of the bidding program. According to Cramton the current bidding system allows the Centers for Medicare and Medicaid Services, who is the creator of the bidding system, to manipulate pricing. In addition, he said that the currently existing market pricing program (MPP) serves as a means of rationally applying competition in Medicare, so there is no need for a new competitive pricing solution.
The event also addressed the issue of reducing spending in federal healthcare. Other speakers who were at the briefing included president of the American Consumer Institute Steve Pociask, vice president of Heartland Institute Eli Lehrer, and assistant attorney general for Virginia Steven Grist.
There were also representatives from the American Association for Homecare, an organization who has been working with members of the congress to create support for legislation that will replace the current bidding program with the MPP.
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