Invacare 2014 Annual Report Download - page 7

I-3
PART I
Item 1. Business.
GENERAL
Invacare Corporation is a leading manufacturer and distributor in its estimated $4.0 billion core global and geographic
markets for medical equipment used in the home and long-term care settings, based upon its distribution channels, breadth of
product line and net sales. The Company designs, manufactures and distributes an extensive line of health care products for the
non-acute care environment, including the home health care and extended care markets. The Company revises and expands its
product lines to meet changing market demands and currently offers numerous product lines. The Company sells its products
principally to home health care and medical equipment providers, distributors and government locations in the United States,
Europe, Canada, New Zealand, Australia and Asia. Invacare’s products are sold through its worldwide distribution network by its
sales force, telesales associates and independent manufacturers’ representatives and distributors.
Invacare is committed to design and deliver the best value in medical products, which promote recovery and active lifestyles
for people requiring home and other non-acute health care. Invacare pursues this vision by:
• designing and developing innovative and technologically superior products;
• ensuring continued focus on the Company’s primary market—the non-acute health care market;
• marketing the Company’s broad range of products;
• driving efficiency and innovation through the use of the Company’s global resources;
• providing a professional and cost-effective sales, customer service and distribution organization;
• supplying innovative provider support and product line extensions;
• building a strong referral base among health care professionals;
• continuously advancing and recruiting top management candidates;
• empowering all employees;
• providing a performance-based reward environment;
• pursuing excellence through ongoing improvements to its quality systems to achieve sustainable regulatory
compliance; and
• continually striving for superior quality throughout the organization.
The Company is a corporation organized under the laws of the State of Ohio in 1971. When the Company was acquired in
December 1979 by a small group of investors, it had $19.5 million in net sales and a limited product line of lifestyle wheelchairs
and patient aids. Invacare's net sales in 2014 were approximately $1.3 billion thus yielding a 13% compound average annual sales
growth rate since 1979. Based upon the Company’s distribution channels, breadth of product line and net sales, Invacare is a
leading company in many of the following major, non-acute, medical equipment categories: power and manual wheelchairs,
homecare bed systems and home respiratory therapy.
The Company’s executive offices are located at One Invacare Way, Elyria, Ohio, 44036 and its telephone number is
[phone]. In this report, “Invacare” and the “Company” refer to Invacare Corporation and, unless the context otherwise
indicates, its consolidated subsidiaries.
THE HOME MEDICAL EQUIPMENT INDUSTRY
The home medical equipment (HME) market includes home health care products, physical rehabilitation products and other
non-disposable products used for the recovery and long-term care of patients. As healthcare spending continues to escalate around
the world, the Company believes that homecare is a significant part of the solution for healthcare reform. A report from the United
Nations, World Population Ageing 2013, states that the number of people age 60 years and older will more than double from 841
million people in 2013 to more than 2 billion in 2050. With the costs of healthcare continuing to increase, the Company believes
that patients will increasingly seek "the right care, in the right place, at the right cost." Invacare believes that homecare is the
"trifecta" of healthcare: it is patient preferred, has better clinical outcomes and is more cost-effective than institutionalized care.