News roundup 16 Oct: Walgreens shuts 1,200 stores–500 in ’25, CVS exiting core infusion biz, Masimo v. Apple update, DEA recommends 3rd telehealth extension, Change hack costing UHG $705M, Owlet back in NYSE compliance

October 16, 2024 | by

A roundup of chickens coming home to roost? But some chickens are just happy to come home.

Walgreens’ Mound of Misery just grew a little higher. The headlines today were all about Walgreens’ closing 1,200 stores over the next three years. Their current store location roster is about 9,000, according to their website. 500 of these will be closed during their upcoming FY2025.  Their release stated this would be “immediately accretive to adjusted EPS and free cash flow”. (Were they making any money at all?) This helped to give their share price a nice bump from $9 to above $10 at market close today. Last year, Walgreens’ shares were priced above $22.

Q4 (closing 31 August) closed with a 6% boost in retail sales. However, losses were $3.0 billion versus a net loss of $180 million in the prior year’s Q4. The reasons cited in their release were a higher operating loss, a $2.3 billion non-cash charge for valuation allowance on deferred tax assets primarily related to opioid liabilities recognized in prior periods, and a non-cash impairment charge related to equity investment in China. The operating loss related to a non-cash goodwill impairment charge for CareCentrix. 

The full year was not cheery. Sales were $147.7 billion, an increase of 6.2% from a year ago (in constant currency, 5.7%). But losses in their FY2024 were $14.1 billion, a stunning increase of 104.5% compared to prior year.

VillageMD is being monetized along with other assets. “CEO Tim Wentworth said in the earnings call that the company is focused on “monetizing non-core assets to generate cash,” naming VillageMD as an example, to focus on its core retail pharmacy business.” HIStalk 16 Oct Can Walgreens shrink itself to profitability? Fierce Healthcare

Over at CVS, they’re doing their own shrinking. CVS is closing its core infusion services business, with plans to either close or sell 29 related regional pharmacies. Infusion services were bought from Coram LLC in 2013 for $2.1 billion. This Reuters exclusive was based on an 8 October memo and confirmed by a CVS press representative. Patients relying on antibiotics, drugs supporting muscular health, and intravenous nutrition services will be transferred to other providers. CVS will continue to provide certain services: specialty medications and enteral nutrition, or tube feeding, at pharmacies in Minnesota, Pennsylvania and San Diego, with nationwide nursing services. Hat tip to HIStalk 16 Oct.

Masimo wins one big patent challenge, loses one (or four), to Apple. 

The Win: Apple had sued Masimo in the US District Court of Delaware for patent infringement of Apple’s utility patent 10,942,491 B2 (“the ‘491 patent”). Masimo was charged as violating Apple’s patent on 19 features. Masimo appealed to the Patent Trial and Appeal Board (PTAB) of the US Patent and Trademark Office (USPTO) for an inter partes review (IPR) of the patent on the grounds of ‘unpatentability’, a very high proof. Masimo succeeded in this, rendering Apple’s ‘491 patent useless. Apple can appeal but the likelihood of success against the PTAB ruling that required three administrative patent judges to review, at this level of proof, is low. In this Editor’s view, this may spur other developers to come up with innovations now that these 19 features have been deemed unpatentable.

The Loss (I think): In review in the Delaware District Court are four complicated lawsuits between the two combatants, with Apple’s premise that Masimo has infringed upon other patents. Masimo alleged “inequitable conduct” by Apple in their patent filings with the PTO, essentially alleging fraudulent filings on multiple patents. Apple has been granted a summary judgment on Masimo’s claims, throwing them out.

Interestingly, Masimo–never shy to announce wins versus their foe Apple under the prior leadership of Joe Kiani–has remained strangely mum. (Perhaps everyone is waiting for the takeover dust to settle?) Will the ‘new’ Masimo be so combative against Apple? A far more detailed analysis for the patent mavens is in Strata-gee. A very large hat tip and bow to their editor, Ted Green, who writes about marketing primarily in the audio/visual business but has been 100% on top of The Masimo Saga–thank you!

To no one’s surprise, DEA kicks the telehealth waiver can down the road–for the third time. The Drug Enforcement Administration (DEA) sent to the White House’s Office of Management and Budget (OMB) a proposed rule to extend telehealth prescribing of Schedule II and higher controlled substances without changes. These waivers which removed the in-person examination requirement under the Ryan-Haight Act were instituted during the Covid pandemic and extended twice [TTA 11 Oct 23, 11 May 23] with a final expiration of 31 December 2024. In September, reports indicated that DEA not only wanted to restore prior restrictions but also wished to introduce additional ones. However, their timing (September!) given Federal standards of publishing draft rules and lengthy comment periods before a final rule was impossible to be achieved by year’s end. [TTA 13 Sept]

Whether OMB will approve the extension (to a date that cannot be confirmed since the text is unavailable, but reportedly one year) is not certain, as it may be disputed by the Department of Health and Human Services (HHS). Since the waiver is due to expire at the end of the year, this may help to assure the multitude of mental health and other telehealth companies dependent on legal remote diagnosis and prescribing controlled substances that their businesses can continue. FierceHealthcare

UHG didn’t have a happy quarter either due to Change. The total hit to UnitedHealth Group of the Change Healthcare hack is now estimated at $705 million, or 75 cents a share. Their 2025 guidance on profit is a lackluster $30 per share–below Wall Street estimates of $31.18. Government plans’ cuts in payments for Medicare Advantage plus and low state payment rates for Medicaid are affecting UHG as well as nearly every other payer. UHG’s share price on the news reacted negatively, falling 9% and dragging down other payers as well. UHG must rue the day they bought Change Healthcare, as it has been largely bad news ever since. CNBC

And winding up on a happy note–Owlet is back in good graces with the NYSE. Last year, they faced a NYSE notification that they were out of compliance with the $50 million minimum valuation of the company over a consecutive 30-day trading day period. They are now in compliance and their Class A shares can trade without the ‘BC’ black mark and no longer be listed as such on the NYSE website. The NYSE will be following its standard procedure of a 12-month follow-up on compliance. Release, Mobihealthnews

The baby sock and baby monitoring company has had a rough couple of years between a cracked SPAC (2021), FDA notifying them at the end of 2021 that they considered the Smart Sock a medical device, forcing the company to pull it from distribution [TTA 4 Dec 21], mounting losses, layoffs, and rebuilding with an FDA-cleared BabySat and enhanced Dream Sock [TTA 21 June 23]. Usually, this concatenation of events means the company either shuts or sells, but Owlet has done neither and bootstrapped itself. Revenue in their Q2 ending 30 June was up 58% year over year with a narrower operating loss of $2.2 million, compared with $6.7 million in prior year. It recently expanded their European distribution of the Dream Sock after CE Mark certification in May to a total of 11 countries [TTA 18 Sep]. 

Friday news roundup: CVS filing for metaverse patents; Orbic-Verizon smartwatch debut, Amwell and LG partner for hospital digital health–and what *doesn’t* make for a good partnership

March 11, 2022 | by

What’s a metaverse anyway? It’s a bright, shiny piece of jargon meaning the virtual reality or 3D virtual world. And CVS is rushing right to the US Patent Office to patent its goods and services–including their clinic services and telehealth–in the metaverse. While it’s hard to imagine prescription drugs, healthcare, wellness, beauty and personal care products being wholly virtual, shopping for them can be and obviously CVS doesn’t want to miss out on a world where we’re all wearing 3D headsets and ordering our healthcare in VR and AR. CNBC, USPO filing  

Orbic, a US-India manufacturer popular for being one of the more budget-friendly makers of mobile phones (including flips), tablets, laptops, routers, and accessories, has debuted a smartwatch in partnership with Verizon, the SmartWrist. It has monitoring features such as pulse oxygen levels, body temperature, heart rate, and sleep. It also sets and keeps track of fitness goals and, for those who need it, fall detection, autodial emergency services or contacts in event of emergency, and geofences safe zones. The watch face is 1.78” AMOLED, dock charging, and Android Go 8.1. All for an affordable $199. Our contact Erin Farrell Talbot tells TTA that the SmartWrist is integrated with EHRs plus currently going through FDA approvals that when completed will enable it to be prescribed for patients with medical issues or chronically ill.

Amwell goes into the hospital to connect with LG on TVs and monitoring devices. LG is the leading provider of smart TVs in the hospital market, and where Amwell will initially partner is with Converge, its unified provider-patient platform, inputting information from LG peripheral devices already in or being introduced into acute care. Amwell and LG are also looking beyond the hospital setting into home or sub-acute care. As Healthcare Dive noted, this is not Amwell’s first fling with TV-based care–they demonstrated at last April’s Client Forum a TV-based hospital-to-home integration with Solaborate. LG release (Yahoo)

Sometimes digital health partnerships start at a low level–and auger in from there. Becker’s Hospital Review quizzed three hospital executives, including one from Geisinger Health, an early adopter, on three signs that your digital health partner is not one for the long haul:

  1. It doesn’t have a genuine mission. The mission that hospitals are interested in are about patient outcomes and interest in the hospital partner’s business, not the digital health company’s funding or press.
  2. It hasn’t earned your trust. It seems obvious, but do your due diligence on how the company has handled other partnerships. Red flags include inadequate funding and the terms of the partnership fluctuating.
  3. It lacks responsiveness. This is a big one that this Editor has experienced as both a vendor and buyer. It’s a willingness to listen to and address pain points in “the never-ending troubleshooting” that’s across the board.

As a digital health company, the first is attitude, the second is performance, but #3 is generally the grind point where internal frustrations build and relationships go south.

Withings returns to international markets with Steel HR Sport and a new Go

October 10, 2018 | by

Withings, bought back earlier this year from Nokia by founder Eric Carreel [TTA 3 May, release 31 May], reentered the market last month with most of the Nokia Health line and its new Steel HR Sport, a multisport hybrid smartwatch with heart rate monitoring, connected GPS tracking and fitness level analytics that analyzes VO2 max (release). Like Withings products before the acquisition, it is a pleasure to look at–well designed and more watch-like than smartwatchy–and surprisingly priced at $200. But on the budget side, reports indicate that Withings is reviving the Withings Go, famous for its eInk face. According to Wareable, they found a listing with the FCC for a successor model number to the previous Go (WAM03) containing information about a fresh design and new sensors for this basic fitness tracker. No price or release date is listed, but the 2016 model was about $70 retail.

Withings’ HQ has returned to Paris and is selling in the US, Canada, Mexico, Europe, Asia, and New Zealand.

Fitbit reaching out to NHS–but new smartwatch ‘a giant mess’ (updated)

May 4, 2017 | by

There have been sketchy reports of Fitbit’s CEO James Park meeting with the NHS last month to get Fitbits into the ‘big moves’ in wearables and apps promised by Health Secretary Jeremy Hunt. Mr. Park’s interview with the Sunday Times (limited access) indicated that Fitbit’s NHS project, should it happen, would be for exercise and activity monitoring, similar to the partnership with UnitedHealthcare which reduces premiums based on policyholder exercise monitoring. This move towards payers is in line with reports starting last year of Fitbit’s seeking clinical markets and moving away from the fickle B2C market. City AM

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2017/05/Fitbit-Watch-FINAL.jpg” thumb_width=”150″ /]Given this week’s leak/reveal and scuttlebutt on the new Fitbit smartwatch, Mr. Park needs to gin up a big payer, quickly. The advance buzz is not positive nor kind. It’s delayed from spring to end of year–in competition with the latest iteration of the Apple Watch. This advance photo of codenamed ‘Higgs’ from Yahoo!Finance indicates a certain clunkiness (and derivation from the panned semi-smartwatch Blaze). It’s pricey, rumored to be priced at around $300. Features include a 1,000nit, built-in GPS, heart-rate monitoring, contactless payments, Pandora and four days of battery life along with connectivity to new Bluetooth headphones. Yet TechCrunch notes “complaints about design, production delays, antenna issues and software problems.” in what they dub “a giant mess”. Forbes notes problems in waterproofing and GPS signal. There are other Android-based smartwatches that do the same for the same price or less. Will this save Fitbit? To be determined….

Update: CEO Park denies delays in the new smartwatch, saying “all new product introductions are on track”, but then again–it hasn’t been officially announced! On the earnings call Thursday, Fitbit stated that new products are now accounting for 84 percent of 1stQ revenue. The company also reported better-than-expected earnings for the first quarter of 2017, reporting an adjusted loss of 15 cents per share on revenue of $299 million. Full year projected at $1.5 – 1.7 bn. Marketwatch, The Verge

The hypealicious, hyperluxus Apple Watch debut–what the healtherati are interested in

March 10, 2015 | by
[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2013/02/gimlet-eye.jpg” thumb_width=”150″ /]L’œil de Gimlet eyes the Apple Watch. What’s down the road is more important than Monday’s unveil. Certainly The Eye, an adorer of all things over-the-top, would love to have the $10,000-and-up 18 karat, Daddy Warbucks, Solid Gold Cadillac edition of the Apple Watch. It is the sheer hyperluxus, Mercedes-Maybach S600-ness of it all that races my pulse. Stop at $4,000? Nein! $10,000 and up lends a golden glow to all those ordinary, plastic-banded, Mickey Mouse-faced $349 and up versions for the Applepolloi that take that pulse, burp your wrist when you’re not moving enough, open the garage door, play tunes and let you draw little thingies on the face that you can send to your friends. (Urp) What’s even better than a Merc-Maybach in Conspicuous Consumption-Ville? That it will be out of date in a year, unless Apple has a trade-in policy.

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2015/03/Tim-Cook-previews-the-App-008.jpg” thumb_width=”200″ /] Cue Tim Cook and the Happy Dance of the Watches. (Photo: Zuma/Rex via Guardian)

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2015/03/Apple-Goldfinger.jpg” thumb_width=”200″ /]Cue Shirley Bassey. (Gigaom via Twitter)

Ah, but let us get down to business and cut our swathe through the fog d’hype. (Editor Donna just walked in the door…)

As predicted and projected, the Apple Watch in stores 24 April in Australia, Canada, China, France, Germany, Hong Kong, Japan, UK and US goes light and standard on health measurement features: accelerometer, heart rate sensors, running and weekly activity reports. What’s different? Wrist burps you if you’re a lazy, sitting sod. (Not a great feature for deep meditators or napsters.) The leak from two weeks ago feinted health through downplaying the functionality of the Watch. Back in September, claims included blood pressure and stress monitoring. [TTA 18 Feb]

Now for the right cross. It’s not the Watch, it’s the ResearchKit. Apple gets serious in health apps beyond HealthKit, partnering with the stars in the medical research firmament. As reported: (more…)

Healbe GoBe sees daylight–but still can’t count calories

February 24, 2015 | by

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2015/02/healbe-gobe-top-4-970×0.jpg” thumb_width=”150″ /]At CEWeek NYC last June, this Editor spent some time with Healbe’s co-founder, who demonstrated to me a prototype of the Healbe GoBe 100% Automatic Body Manager fitness tracker. I walked away underwhelmed at its performance and skeptical of its main claim to fame–automatic measurement of caloric intake via measuring blood glucose conversion to fluid in cells. This was reinforced by a trail of tech product reviewers digging into its development, the controversial science behind it and a growing rebellion on Indiegogo, where contributions exceeded $1 million. Then it took delays–first September, then November. Few in the industry believed it would ever ship.

However, it has, and at least one intensive review after a month of wear is in from Engadget. Topline: it’s not a scam (which will disappoint some)  (more…)

Lively telecare system adds smartwatch-flavored PERS

September 18, 2014 | by
[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2014/09/Lively_safetywatch_captioned_June-2014.jpg” thumb_width=”150″ /]The Lively home telecare system, which uses a series of passive activity sensors wirelessly connected to a cellular monitoring hub, announced a ‘safety watch’ addition to its system. The wristband has a watch form factor, is waterproof and contains an emergency button with analog/digital option on its time/date watch face. The smartwatch-ish features are medication reminders and a pedometer for step tracking. When out of home, the wristband tethers to an Android (only) smartphone. Battery is good for about six months. If the button is pushed, there is a ‘countdown’ during which a call center attempts to reach the user by phone (watch is not two-way voice) prior to dispatching emergency (more…)

Yesterday’s Apple intros and implications for health monitoring

September 11, 2014 | by | 1 Comment

A knockout or a catch up? Now that the Hype Dust is settling (along with Apple’s stock price), let’s take a look at what we know today about the new, larger iPhones and the Apple Watch regarding health monitoring.

Where it was a catch up:

  • Size and screen in phones. Apple got the message: squinting at tiny type and swiping to enlarge is rapidly becoming yesterday’s pain. As smartphones and larger screens knocked out the Blackberry, Samsung led the way in sizing up and higher resolution–and others followed suit. The awful fact is that the smartphone market is aging, both in users and who’s left in the market to grow it, and we want to see, not squint.
  • [grow_thumb image=”https://telecareaware.com/wp-content/uploads/2014/09/apple-watch-beauty-shot.png” thumb_width=”150″ /]Finally (drum roll), a sleeker smartwatch with fitness tracking, out sometime next year–and not just a sports model. The basic model is a rubbery Sport watch, the mid-line has a sapphire crystal, stainless steel case and (proprietary) swappable bands. The beauty is the upmarket version in gold with a leather band (left, courtesy re/Code).
    • Here Apple is up against multiple in-market competition from Fitbit to Moto to Withings to Samsung Gear–whose pricing is well below the starter Apple Watch at $349 in the $200 and below range.
    • The Apple Watch looks seriously great, distinctively thinner and it’ll be a prestige item. But does it track more and better? No. According to reports (updated today) this is what it has: heart rate monitor, pulse, daily activity for which you need the phone. No sleep monitoring. It also has to be charged every night. There may be other features from developers, but they are under wraps for now and will likely require phone tethering. (re/Code) It’s not a comprehensive lifestyle watch–yet.

Where it could be a knockout in healthcare:

  • Finally, a compelling reason for health care providers to ditch the old iPhone and not go Android. Healthcare providers in the US are heavily wedded to iOS: (more…)

Technology which resonates with the 50+ consumer

July 1, 2014 | by

If you are a health tech developer, entrepreneur or marketer lost in the forest of the 50+ market, Laurie Orlov of Aging in Place Technology Watch and the new Boomer Health Tech Watch just handed you a map with her latest study for AARP, Challenging Innovators: Matching offerings to the needs of older adults (link to PDF). To appeal successfully to the multiple segments and sub-segments of 50+, there’s more to it than a strong belief that your tech would have been just the thing for your mum or grandmere. The hurdles like reluctant long-term care providers and tech-unfamiliar older adults are significant. Misreading the market, making the tech too complex or identifying it too strongly with ‘old folks’ usually lead to ‘lights out’. Ms Orlov’s pointers take you through testing, crowdfunding, accelerators, the right way to price disrupt, transition point mapping, partnerships and more. A recommended guide.

Over at Aging in Place, Ms Orlov serves up another idea with The ideal wearable for seniors – why not a much-modified PERS which incorporates smartwatch/fitness band capabilities such as dehydration monitoring, activity, blood pressure and other tracking, putting them up on a smartphone app.

Swoon or mourn? Smartwatch action: Misfit, MS HealthVault, Glance

June 26, 2014 | by

The smartwatch is nowhere near dead (check the beautiful Withings Activité at CEWeek), but its future, along with pure fitness bands, is a complicated thing. Three moves by small to giant companies further add color to (or complicate) the picture, including an ‘aftermarket’ add on for your current watch:

  • Misfit joins up with the Pebble smartwatch. The Misfit Shine, which has enjoyed much appreciation by the D3H as the ‘elegant button’, announced it will distribute its tracking app and algorithm technology to smartwatch makers. Pebble is the first and not exclusive. Sonny Vu, not known for his subtlety, is quoted in VentureBeat: “If I kept making just fitness trackers, I would be out of business in 12 to 18 months.” Misfit will continue to sell Shine in the US and internationally for at least another few quarters to meet demand for a fitness-only tracker. It shows you how quickly the weather changes: with $23 million in hand, and a Series B last December of $15.2 million, they are pivoting–quickly. John Sculley and other bluechip investors like Khosla Ventures and Norwest Capital obviously see a boulder in the road.
  • Microsoft moving to get into the smartwatch biz. Their patent filing of 2012 was just the first move but both Forbes and VentureBeat have confirmed rumors the device is a go. And they have a core of techies (Xbox) to work on it and the perfect place for the data: Microsoft HealthVault. Nothing like a smartwatch to jolt some life into a moribund PHR!
  • Love your plain old watch but just want to soup it up? Slip Kiwi Wearables’ Glance under your watch instead and get fitness tracking plus smartwatch functions. Kiwi already has the app for the Kiwi Move but Glance seems to have more such as interaction with your phone calls. Think of it as an aftermarket accessory, especially if you’re a traditionalist in watch form factor and/or don’t have the long green for Withings. In Kickstarter funding now with a price point of $65, but they are less than halfway towards their $150,000 goal with only six days to go. Gizmag

Intel and its ‘Basis’ instinct

March 7, 2014 | by
[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2014/03/intel-basis-smartwatch_large.png” thumb_width=”150″ /]Intel now in the smartwatch business…or are they?

TechCrunch reported yesterday that fitness tracker Basis sold to Intel, ending weeks of speculation of a sale to Apple, Google, Samsung and Microsoft. The price is between $100 and $150 million according to TechCrunch’s sources. A higher-end ($200) watch which recently entered the sleep tracking area, Basis’ Health Tracker B1 currently tracks steps (accelerometer), calories burned, heart rate, skin temperature and perspiration through wrist contact. Their proprietary software loads up the information to a dashboard for analysis and tracking. Basis has not developed into a major fitness smartwatch, having 7 percent of the market according to TechCrunch but far less according to NPD Group’s 2013-4 retail sales year , with Fitbit at 68 percent, Jawbone at 19 percent and Nike FuelBand at 10 (Mobihealthnews). With Intel premiering at CES a smart chip called Edison for wearables and a Siri-like Bluetooth headset dubbed Jarvis, the speculation is that the purchase is to give Intel both entreé into and a ready-made working team for the Internet of Things and wearables, since it largely missed the boat in mobile.  Also Motley Fool, Apple Insider and one tech observer on why Intel shouldn’t be in the smartwatch business.

Samsung gets jump on 2014 smartwatch rush

August 27, 2013 | by

Breaking news

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2013/08/galaxy_gear_mockup.jpg” thumb_width=”175″ /]Word via Mashable is that Samsung’s shot over the bow in the smartwatch wars comes on 4 September when it introduces its smartwatch, the Galaxy Gear, just ahead of the IFA consumer electronics trade show in Berlin. Rumor has it that it will be in five colors (white, orange, gray, black and the newest trend, white gold). This couples with their recent introduction of the massive phablet, the Galaxy Mega. No word yet on health applications, but what comes in the smartwatch will be an indicator of Samsung’s seriousness about extending S Health.  (Photo is mockup) Samsung’s Galaxy Gear Coming Sept. 4, Samsung’s Smart Watch Rumored to Come in Five Colors

Previously in TTA: Smartwatches as the 2014 tablet, redux; Apple-ologists discern ‘new’ interest in health tech and telehealth