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Novasom sleep device co?

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Anonymous

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Anyone know anything about them? Have IV coming up. they sell at home sleep devices to PCP and IM docs. They are supposedly the leader in this technology, but wondering what real scoop is. They have no board. thanks! Based in maryland
 










Don't know if that is accurate. A lot of people with sleep apnea get referred by their PCP, go to the sleep centers to do the overnight evaluation to get the proper CPAP assigned to them.

I would want to know what their market share is in the territory you are interviewing for and what type of growth expectations are expected.

The assumption is you want the docs to buy the device then give it to the patient to do their own sleep study, have Novasom do everything after the referral and get the proper CPAP to the patient. With that being said, does the doc make any money on the referral? What's in it for them? If there is no financial benefit for them, they can just refer the patient to the local sleep center and continue on without spendig a dime on the devices.

Just a thought.
 




Home sleep testing is controversial. There is a definite market and reimbursement for it but the adoption can vary from community to community.
The market leader right now is Watermark with the ARES system. Some docs use the Apnealink and some use the Novasom. I think there are 20+ home sleep testing options out there.
Interesting space to be in because it is evolving and pcps may actually want to talk to you...Unlike alot of other rep jobs.
 




What I was told is docs only write RX and it is sent to patient, less $ than sleep lab. Doc gets reuimbursed $70 by insurance every time he reads the results. So, he does not buy device up front. RX, then sent to patient. Related to diabetes, obesity, high blood pressure, if not diagnosed CVD/heart attacks, stroke, etc. More interesting than selling pills, just wondered if anyone knew much about company culture, etc. I knew Watermark #1, thanks for that info btw. Good to know! Car allowance sucks, pay decent
 








Just interviewed. If anyone knows anything about this culture, products, management- please let me know. I think iv went well. Just would like to know more than what sugar coating the manager gave me- Thanks!
 








I worked for NovaSom for several years (used to be Sleep Solutions, Inc.). In a nut shell, they were the first company to design, engineer, sell and get FDA clearance for a home sleep study device (the NovaSom, hence the name change).

Up until mid 2008 their primary market was the Veterans Hospital System due to non existent reimbursement from the private insurance market. When CMS (Medicare) changed it's policy and covered HSS (March, 2008) NS entered the commercial (pcp) market big time. At that time they received VC funding from TPG (20 million) to hire upper management and an army of sales reps (well if 40's an army).

From mid 2008 to the end of 2010 the company struggled with a various issues ranging from horrible VP of sales leadership, ditto CFO, a CEO that was slow to recognize or address this, a continued changing message (to sales reps), a commission plan that was changed 1-2 times per year (and not in the positive), very bad customer/patient service, a completion rate (the real completion study rate) of less than 35%, a 3 night study model in an environment that is rapidly only reimbursing for 2 and sometimes 1 night, a VAMC service model that is "dying on the vine", only diagnosing and offering no therapy option (they say they do but they DO NOT), past CPT coding that ended in a $500K fine paid to the US Justice Dept/HHS .... I could go on but I think you get the picture.

As for 2011, I believe this is their make or break year. Within the last 6 months they have terminated VP Sales, CFO, VP Customer/Patient service, 50% of their sales force (with a sales force that doesn't really understand the industry and will dress up in lab coats to act like they are part of that physicians office staff to "pre screen" for OSA - I know of 2 large former practices that were lost because of this). The current "new model" will consist of partnering with the insurance industry to promote "active steerage" in the belief that the insurance industry will actively send pts. to NS for HSS vs. an in lab sleep study. Some carriers "Aetna" will require a pre auth if cpt code 95807 (in lab, attended) is used vs. no pre auth. for 95806 (out of lab, unattended) but having worked with various carriers for many years .. they will not actively send pts. for a home study ... can anyone say "Over Utilization Fears".

I realize in this challenging economy that a job offer with this company is not something to take lightly but do know that they will not be truthful with you, will not and do not care about the reimbursement reality (are stuck on a 3 night model), are bleeding huge amounts of cash and will treat/view thier sales force as cannon fodder (sp?) until they can find a buyer for either their device or their existing accounts (referring physicians).

As for an optional (and in my opinion) much better way to get into this market:

Watermark "ARES" (heard they have an opening in Kansas City), Itamar "WatchPat" or even Repironics "Alice PDX".

The above are diagnostic only business models and usually require their devices be purchased but all are very good units.


Good Luck !
 




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