GN ReSound Opens New Corporate Headquarters Chicago—The GN ReSound Group celebrated the opening of its new North American corporate headquarters and technology center October 10 at Prairie Glen Corporate Campus, Glennville, Ill. President and CEO Jesper Mailind joined other GN ReSound, Beltone, and GN Otometrics executives and employees in “The Glen” for a ribbon-cutting ceremony and the official unveiling of the new headquarters, which is situated about 10 miles from Beltone’s former headquarters. Completed in early September, the 49,000-square-foot, two-story building houses approximately 150 employees and serves as a center for research and development, global manufacturing, and research audiology groups, as well as Beltone’s North American headquarters. The new building will provide Beltone employees with office space and facilities in one of the Chicago-area’s premier locations, and Beltone will lease a portion of its former building at 4201 West Victoria Street in Chicago for some of production needs. Todd Murray “This new facility represents the growth of the Beltone brand, and our extraordinary North American network of hearing care practitioners,” says Beltone President Todd Murray. “In celebration of our 65th Anniversary, we proudly recognize our past accomplishments and great legacy, while looking forward to a bright and successful future.” Jesper Mailind “We celebrate as GN ReSound and Beltone take another step forward in the area of hearing care research,” says Jesper Mailind, president and CEO of GN ReSound. “The discoveries made in this new facility will touch the lives of millions of people, and, more importantly, mean a better, healthier life for the growing number of people who suffer from hearing loss.” Laurel Christensen The new facilities also encompass the GN ReSound Group’s Technology Center which will be conducting consumer research trials, and developing and testing hearing-related products from the facility. “We are excited to have local-area residents be a part of the trials held in our new facility," says Laurel Christensen, vice president of research audiology, research and development for the GN ReSound Group. The facilities include the Audiology Clinic, a high-tech center consisting of four large fitting suites and three acoustically defined soundbooths; and the GN Auditory Research Laboratory, reportedly one of the most advanced auditory research centers of its kind. The focus of the research team is to generate innovative research solutions that provide benefit and comfort for hearing-impaired individuals and to support the development of these research solutions into end-user products, according to the company. “For Beltone, the new headquarters symbolizes our new capabilities and the growth we’re experiencing.” Murray says. “It also embodies our commitment and our investment in our business. A building is four walls and our building at 4201 West Victoria in Chicago served us well for a long time. But, obviously, it’s the people inside the building that support the Beltone Network and make it stronger. The reality is that the new facility represents a much more productive place where we can do business...The building has the facilities for us to do training and to work and collaborate with our partners in the research development group.” The company’s expansion and new location is anticipated to help in the fulfillment of its growth objectives. “We now reach to the northern and southern Chicago suburbs and can attract even more talented people to our growing business,” Murray says. He states that Beltone has hired more employees to accommodate its rapid growth, and that the move produced surprisingly few disruptions. “Beltone has a legacy of training its dispensers on new products, technologies, and protocols,” Murray says. “What this facility gives us is more space and better technology to provide our training. We often talk about the Beltone brand in terms of the experience that our dispensers provide to end users; strategically, we believe we’re the best at delivering superior patient experiences. So, in addition to product knowledge training, we’re now committed to doing more sales training and other types of instruction to make sure that our dispenser community continues to excels in providing excellent service.” GN ReSound and Beltone worked with Catellus Development Corporation to develop the new headquarters. Prairie Glen is one of the premier locations in Chicago’s northern suburbs for major corporate relocations, according to Kevin Matzke, Catellus senior vice president. w

Private Practice Hearing Aids Sales Up, VA Sales Down
Alexandria, Va—Hearing instrument unit sales in the United States increased by only 1.4% in the third quarter compared to the same period last year, according to statistics generated by the Hearing Industries Association (HIA). This was due primarily to a 9.8% downturn in dispensing activity at the Department of Veterans Affairs (VA) whose sales constituted almost 15% of the hearing aid market in the United States during 2004. When ignoring VA activity, hearing aid sales for private sector dispensers increased by 3.4% in the third quarter.

Over the first three quarters of 2005, digital signal processing (DSP) hearing instruments made up 88.6% of all hearing aids sold, meaning that analog hearing aids now constitute less than 12% of the market. The increased popularity of directional, open-fit, and new hearing aid designs are also having a substantial impact on dispensing and hearing instrument styles: Behind-the-ear hearing aids made up 33.5% of all units dispensed in the third quarter and 31.3% on the year. By comparison, BTEs made up only 26.4% of the market in 2004 and 20.2% of the market in 2000.

GN Purchases Interton
Chicago—GN Store Nord, the parent company of GN ReSound, Beltone Electronics, and the GN Otometrics group of companies, has agreed to acquire hearing instrument manufacturer Interton Hörgeräte, which has its corporate headquarters in Bergisch Gladbach, Germany, and US headquarters in Plymouth, Minn. The reported purchase price was $56.3 million (DKK 350 million), and the transaction includes an earn-out agreement tied to the 2005-2007 revenue performance.

According to GN, the acquisition strengthens the group’s product portfolio and regional coverage, and is consistent with the company’s strategic decision to prioritize organic growth following the 2004 completion of the in-depth structural changes in its hearing instrument operations. The company says it expects that Interton’s medium- and low-priced products will enhance its profile as a provider of quality hearing instruments in all price categories. The company plans to retain Interton as an independent brand in order to complement GN’s existing brands.

Interton is strongly positioned in the German market—the second largest market in the world—and has recently made inroads into the US with a diverse product line that includes a unique “non-compression” processing strategy (see Todd Fortune’s article, “What the Heck is Bionic with ADRO?” in the July 2005 HR). Germany constitutes about 10% of the world market. The acquisition, combined with the recent purchasing activity by Amplifon (see June 2005 HR News, p 14), may help propel GN past all companies except Siemens relative to German market share.

Interton’s management says that it sees opportunities to leverage GN’s considerable technical capabilities. “Presently, the hearing aid industry is experiencing rapid development,” said Interton Managing Directors Hellmuth & Winfried Türk in a joint statement. “Technical requirements are becoming more demanding and new products are being introduced to the market frequently. [Arranging an] Interton-portfolio in the digital high-tech software platform of GN will save Interton significant costs and time. This will be a major step, which will enable us to continue to provide you with the innovative technology, to grow your business.

“Interton will still be the same, flexible, service-oriented company which still is being managed by the family members,” stated the Türks. “...We are looking forward to continue a successful future with our customers.”

Interton projects 2005 revenues of approximately $35.2 million on annual unit sales of about 145,000 units. The acquisition is subject to customary regulatory approval.

Siemens Donates Almost $3 Million to Hurricane Relief
Piscataway, NJ—Siemens Hearing Instruments employees, in conjunction with Siemens 70,000 US employees, have so far collectively donated $1.4 million to the American Red Cross Disaster Relief Fund for hurricane victims. Siemens is matching those donations dollar-for-dollar, providing nearly $3 million for provisions of shelter, food, counseling, and other assistance to those individuals in need.

“Since Hurricane Katrina struck the US Gulf Coast last August, we have been working closely with Siemens and all of its business units to help assist with the relief effort and rebuild the communities in the South,” says Siemens Hearing Instruments President and CEO William Lankenau. “The devastation in these areas is heartbreaking, and our thoughts are with those struggling in the aftermath of this disaster. I’m so proud of the way our employees are rallying together to do what we can to help.”

In addition, Siemens has established a program to offer replacement hearing instruments for those individuals in need. The company is working with hearing care professionals to coordinate testing, fitting, and programming services. Dispensing professionals partnering with Siemens receive specific information regarding the process for obtaining the replacement hearing instruments. (Professionals willing to participate and donate their services or to learn more about the process can contact a Siemens sales representative at (800) 766-4500 or by emailing marketingcommunications@siemens.com.)

Siemens is also helping rebuild critical infrastructure by supplying equipment and power generators to hospitals in Houston and Louisiana, telecommunications equipment to emergency centers and key hubs, and USFilter water treatment equipment to the Gulf Coast areas. The company is sending heart monitors and imaging equipment to Houston area hospitals. Additionally, Siemens is working with the Red Cross and FEMA to determine what other products, services, and manpower is needed to assist with the relief efforts.

ABA Announces Plans for Pediatric Audiology Certification
Reston, Va—The American Board of Audiology (ABA) is beginning work on two new initiatives, and is seeking support from the audiology community to bring these to fruition, according to ABA Chair John Greer Clark, PhD.

Following the ABA’s recent launch of a specialty certification in cochlear implantation developed under the leadership of Patricia Chute and Cheryl DeConde Johnson, ABA is now working towards its second specialty certification program (for more information, see the January 2005 HR News, p 10, and the article in the same issue by Johnson & Chute, p 62). According to Clark, a survey of members of the American Academy of Audiology (AAA) revealed that 78% of audiologists believed pediatric audiology had progressed to the point that it should be considered a “specialty area.” ABA Board member, Jim Beauchamp, and a committee of nationally recognized pediatric audiologists have undertaken the task of establishing criteria for this certification.

The purpose of specialty certification is to identify and formally recognize those audiologists whose knowledge base and clinical skills are consistent with professionally established standards and who continue to enhance their knowledge, skills, and abilities through advanced training and other educational activities, according to the ABA. The organization says that, by entering into this voluntary certification program, audiologists demonstrate their commitment to achieving and maintaining the highest professional standards. Board Certification in Audiology will assist consumers in recognizing those individuals who have completed standardized education and training, and who continue their personal and professional development. The certification program is open to all audiologists regardless of membership in any professional organization.

ABA is also designing a new national audiology examination designed to “reflect audiology’s emergence as a doctorate-level health care profession,” according to ABA. This examination, designed to test future audiologists’ application of newly learned and developed clinical skills, will be marketed to states for the examination of new applicants for licensure in audiology. ABA will be working with a testing industry consultant to develop the requisite job analysis, help prepare needed examination questions, and construct a valid test along with implementation of subsequent processes for test delivery, item scoring, and results reporting.

“This is a time for all audiologists to help make a difference in their chosen profession as we continue down the road to autonomy,” Clark says. “The ABA is looking for rank and file audiologists to contribute toward making the new national examination and the pediatric specialty certification program a reality.” ABA is working with the American Academy of Audiology Foundation (AAAF) in a fundraising campaign aimed at supporting these initiatives. For more information, visit the ABA Web site at: www.americanboardofaudiology.org.  

Hearing Aids Available to Active Duty Families Under Tricare
Beginning in September, active-duty family members who meet specific hearing loss requirements will be eligible to receive hearing aids, including services and supplies, as a Tricare benefit, according to the Hearing Industries Association (HIA). This benefit is extended to family members as part of the National Defense Authorization Act for fiscal year 2002. Previously, hearing aids and services were only available to those beneficiaries who were in the “Program for Persons with Disabilities.”

The fiscal year 2002 NDAA provision allows for coverage of a hearing aid to family members diagnosed with a “profound” hearing loss. With the assistance of service physicians and audiologists from the Department of the Defense and Veterans Affairs, Tricare officials established separate hearing-level thresholds for adults and children.

Changes Announced at FDA
Washington, DC—In late September, National Cancer Institute (NCI) Director Andrew C. von Eschenbach was named by President Bush to assume the role of acting commissioner of the US Food and Drug Administration (FDA). von Eschenbach also will continue in his role as NCI director.

von Eschenbach’s appointment followed the sudden resignation of former FDA Commissioner Lester Crawford. In addition to his time as the FDA commissioner, Crawford also served as deputy commissioner and acting commissioner at FDA.

Prior to accepting the appointment to lead NCI in January 2002, von Eschenbach was the executive vice president and chief academic officer of the University of Texas M.D. Anderson Cancer Center in Houston. He was reportedly instrumental in fostering integrated research programs in the biology, epidemiology, prevention, and treatment of prostate cancer. At NCI, he has been a strong proponent of a more collaborative, team-science approach to research and the movement toward individualized medicine based on the growing understanding of the molecular underpinnings of many diseases.

HHS Extends Interim Rule for HIPAA Violations
Washington, DC—The Department of Health and Human Services (HHS) announced that it was extending for six months an interim final rule establishing procedures for imposing civil money penalties on covered entities found to have violated federal health care information standards. The procedural rule, which applies to regulations HHS issued under the administrative simplification provisions of the Health Insurance Portability and Accountability Act (HIPAA), was set to expire September 16, 2005.

According to the notice, “The regulatory action extends the expiration date to March 16, 2006, to avoid the disruption of ongoing enforcement actions while HHS completes rule-making to develop a more comprehensive enforcement rule.” The extension will become final with its September 14 publication in the Federal Register. HHS’s procedural rule applies to covered entities, including providers, payers, and clearinghouses, that violate HIPAA privacy, security, and transaction and codes sets regulations.

For more information on HIPAA Security regulations, see the July 2004 edition of HR. There is also a list of recommended resources on HIPAA in the March 2003 HR, p 50.

The Mouse that...Sings?
St Louis—Do mice sing? A recent paper, published by Timothy Holy and Zhongsheng Guo at Washington University in St Louis appears online in the journal Public Library of Science Biology, suggests that they do.

It’s well known that male lab mice produce high-frequency sounds when they pick up the scent of a female mouse. These sounds are undetectable to human ears. It has been presumed that the high-pitched babble is used in courtship. Now researchers are finding that the sounds are more complex and interesting than previously thought. Audio recordings of the sounds were modified for human ears, and the recordings sound bird-like.

If the analysis by the researchers is confirmed, mice can be added to the short list of creatures that sing in the presence of the opposite sex, including songbirds, humpback whales, porpoises, insects and, possibly, bats. The finding also suggests that mice may be useful in the study of communication disorders, says lead author Holy, an assistant professor of neurobiology and anatomy at the university’s medical school.

A review of the study by Washington University’s Michael Purdy, along with some interesting mouse vocalizations, can be found at http://mednews.wustl.edu/news/ page/normal/6040.html. Holy and Guo’s article, “Ultrasonic songs in male mice,” is available at: http://www.plos.org/press/plbi-03-12-holy.pdf.   Funding for the study came from the National Institutes of Health and the Pew Scholars Program.

CHIPS Produces “Canadian Consumer Guide to Hearing Loss and Hearing Aids” Peterborough, Ontario—The Canadian Hearing Instrument Practitioners Society (CHIPS) has published a comprehensive resource guide for Canadian consumers entitled, The Canadian Consumer Guide to Hearing Loss and Hearing Aids, which can be downloaded from the Society’s Web site at www.hearcanada.com. The 32-page Guide is designed as a consumer handbook for the 3 million people in Canada who suffer from hearing loss. It describes the origins and types of hearing loss, common misconceptions about hearing impairment, and explains the hearing health care disciplines (ENTs, audiologists, and hearing instrument specialists). A handy section includes tips on what the consumer should be sure to know prior to leaving the dispensing office after the initial fitting. Additionally, the Guide provides information on the different styles and technologies involved in the hearing aid selection process, as well as presents an extensive resource and financial assistance guide for those seeking hearing help.