Invacare 2012 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2012 Invacare annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Europe/Asia/Pacific Market
The company believes that, while many of the market factors influencing demand in North America are also
present in Europe and Asia/Pacific—aging of the population, growing number of patients with chronic illnesses,
as well as technological trends—each of the markets of Europe and in Asia/Pacific has distinctive characteristics.
The health care industry tends to be more heavily socialized and, therefore, is more influenced by government
regulation and fiscal policy. Variations in product specifications, regulatory approval processes, distribution
requirements and reimbursement policies require the company to tailor its approach to the local market.
Management believes that as the European markets develop more common product requirements and the
company continues to refine its distribution channels, the company can more effectively penetrate these markets
with global product platforms that are localized with region-specific adjustments as necessary. Likewise, the
company expects to increase its sales in the highly fragmented Australian, New Zealand and Asian markets as
these markets, and the company’s distribution within them, develop.
Reimbursement
The company is directly affected by government regulation and reimbursement policies in virtually every
country in which the company operates. In the United States, the growth of health care costs has increased at
rates in excess of the rate of inflation and as a percentage of GDP for several decades. A number of efforts to
control the federal deficit have impacted reimbursement levels for government sponsored health care programs,
and private insurance companies and state Medicaid programs peg their reimbursement levels to Medicare.
Reimbursement guidelines in the home health care industry have a substantial impact on the nature and type
of equipment an end-user can obtain and, thus, affect the product mix, pricing and payment patterns of the
company’s customers who are medical equipment providers. The company believes its strong market position
and technical expertise will allow it to respond to ongoing regulatory changes. However, the issues described
above will likely continue to have significant impacts on the pricing of the company’s products.
GEOGRAPHICAL SEGMENTS AND PRODUCT CATEGORIES
North America
North America includes the following segments in the United States and Canada: North America/Home
Medical Equipment (NA/HME) and Institutional Products Group (IPG).
NA/HME
This segment primarily includes: Mobility and Seating, Lifestyle and Respiratory Therapy product lines as
discussed below. This segment comprises 47.6%, 49.7% and 51.8% of the net sales from continuing operations in
2012, 2011 and 2010, respectively.
MOBILITY AND SEATING PRODUCTS
Power Wheelchairs. Invacare manufactures a complete line of power wheelchairs for individuals
who require independent powered mobility. The range includes products that can be significantly
customized to meet an individual’s specific needs, as well as products that are inherently versatile and
meet a broad range of individual requirements. Center-wheel drive power wheelchair lines are marketed
under the Invacare®TDX®brand name and include a full range of powered mobility products. The TDX
line of power wheelchairs offers a combination of power, stability and maneuverability. Power tilt and
recline systems are offered as well. The Pronto®series power wheelchairs with SureStep®stability
feature center-wheel drive performance.
I-5