Invacare 2007 Annual Report Download - page 4

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Medicare changes continue to be debated in Washington, especially with regard to power wheelchairs and
oxygen. Invacare remains an ardent advocate for the industry, lobbying against oxygen reimbursement
reductions, against elimination of the power wheelchair first-month purchase option, and for the modification of
competitive bidding to assure small business participation and consumer access.
Given continued Medicare uncertainty, Invacare has implemented a global strategy to focus on product and
service areas, and eventually new acquisitions, that are less sensitive to Medicare reimbursements. While
approximately 40% of the domestic market revenue stream is from the sale of equipment which is ultimately
reimbursed by Medicare, the five-year goal is to reduce that figure to 25% through diversification into services,
international expansion and a focus on non-Medicare sales. The Company took a recent step in that direction
with the acquisition of Roadrunner Mobility, Inc., an independent power wheelchair and scooter service
company. Roadrunner Mobility Inc. enables Invacare to offer its provider customers a successful service plan
that expands their service geography, helps drive costs from their business, and assures consumers of technical
service anywhere in the USA, regardless of where the product was purchased.
Effective April 1, 2008, Invacare appointed its new Chief Financial Officer, Robert Gudbranson, who
returns to Invacare and brings considerable talent and a wealth of experience. In his previous tenure with the
Company, Mr. Gudbranson’s roles included director of business development and investor relations, assistant
treasurer and European finance director.
We thank our customers, associates and shareholders for their continued support. Despite the challenges the
Company faced in the past few years, there are still exciting opportunities ahead for Invacare and the HME
industry. The number of people requiring home healthcare continues to grow. Home care will increasingly be
seen as a way to curb rising healthcare costs.
Invacare remains the world leader in the manufacture and distribution of home medical products. We are
unrelenting long-term players. In challenging times, Invacare is strengthening its position and distancing itself
from the competition. While historical margins have not yet been achieved, Invacare is emerging as an agile,
efficient and strong company.
Sincerely,
A. Malachi Mixon, III
Chairman and Chief Executive Officer
Gerald B. Blouch
President and Chief Operating Officer