Policy

Invacare’s federal lobbying: Lots of spending, few results

Despite having spent nearly $8 million on federal lobbying since 2005, home health products maker […]

Despite having spent nearly $8 million on federal lobbying since 2005, home health products maker Invacare (NYSE:IVC) doesn’t have much to show for its efforts.

Invacare has plenty of reasons to lobby Congress, because federal policy has a greater impact on the Elyria, Ohio-based firm than most. Medicare reimbursement rates determine the price that Invacare’s equipment-dealer customers can charge consumers for many home health products like wheelchairs and beds, and in turn heavily influence the prices that Invacare is able to charge those customers.

Unfortunately for Invacare, it seems to be nearly perpetually on the losing side of the health-spending battle, as rapidly inflating health costs in recent decades have payers like the federal government desperately searching for ways to hold down spending.

So when it comes to Medicare spending, revenue to Invacare is cost to the government. That’s why Invacare figures to be fighting this battle for a long time.

According to a detailed analysis by The Plain Dealer of Invacare’s lobbying efforts, the company has failed in several of its key pushes. For example, Invacare was unable to defeat a competitive bidding program for home health products that took effect this year, couldn’t stop 2006 Medicare cuts to home-oxygen-supplies dealers, and thus far hasn’t succeeded in defeating a tax on medical device companies that’s slated to begin in 2013.

To his credit, Invacare Chairman A. Malachi Mixon admits his company’s lobbying efforts have often brought mostly frustration. “It’s like pushing a wet noodle uphill,” he said. “But it doesn’t mean you don’t try.”

Medicare spends more than $10 billion per year on home health products, but Invacare won’t say how much money it makes from Medicare, The Plain Dealer reported.

In 2010, Invacare trailed only Cardinal Health among Ohio healthcare companies in federal lobbying spending, MedCity News reported in January.

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