Archive: March 2006

AUSTIN, Texas - When it comes to their very own HME association, providers in New Mexico now have a place to call home. In February, the board of directors of the Medical Equipment Suppliers Association (MESA) voted to add New Mexico to its service area. "We always want more members--I'm greedy; I want every member I can get," said Liz Moran, MESA's executive vice president. "There was not a state or regional association that reached out to New Mexico, and I expect we will get more New Mexico members...

AKRON, Ohio - CornerStone Medical Services MidWest acquired Troy, Ohio-based Legacy Medical Equipment in late February, increasing its patient base by 25%. CornerStone, which provides respiratory and medical equipment, now serves 2,000 patients. CornerStone's future plans include continued strategic growth throughout Ohio and the Midwest. The company has no plans to eliminate jobs or cease operations at any of the acquired offices, it stated in a release.

Q. As Medicare reimbursement cuts once again force the HME industry to tighten its belt, how can providers continue to maintain a high level of customer service? A. There is no better time to focus on the customer than when times are changing, reimbursement is shrinking and there is competition to contend with. As the competition talks about cutting back service, think of the many ways that you can enhance what you offer and still not sacrifice the profit margin needed to operate the business. The...

WASHINGTON - CMS began releasing more details on the National Provider Identification (NPI) process in January and February with two documents on how providers with multiple locations should apply for the 10-digit numbers. The first document notified providers that they must obtain unique NPI numbers for each of their "subparts" or locations. Providers must begin using NPI numbers to identify themselves as healthcare providers on or before May 23, 2007. The second document notified providers that...

LOUISVILLE, Ky. - Bluegrass Oxygen plans to leverage the constant upheaval in the HME industry to grow its business. With the opening of its sixth location in Louisville, Ky., Mike Marnhout, president and CEO of the family-owned company, said Bluegrass couldn't be in a better position. "We feel like there's a lot of people who are going to want to get out of this business in the next few years, especially the mom and pops," said Marnhout. "Hopefully, we'll be able to work with these people and keep...

STOUGHTON, Mass. - Medical Specialties Distributors (MSD) and Apria Healthcare signed a three year primary distribution agreement last month, naming MSD as Apria's primary supplier of healthcare products. MSD will provide IV therapy kits, needles, syringes, general wound care, and pharmacy and clean room supplies to all of Apria's infusion pharmacies located throughout the United States.

Q. I have heard that the federal government has recently stepped up prosecuting DME suppliers for various violations like paying kickbacks or submitting false claims. Is there anything suppliers should be particularly careful about? A. Healthcare fraud enforcement has increased substantially over the last few years and DME companies have been significant targets. The government believes that some DME companies are involved in illegal schemes. In response, the government has increased prosecution...

DALLAS - A disgruntled shareholder in late February made a bid to buy American HomePatient for $3.40 per share--11% more than the company's closing price at the time. Highland Capital Management, which owns 10% of AHP's stock, stated its intentions to "negotiate a mutually agreeable transaction" in a Feb. 27 letter to President and CEO Joe Furlong. If AHP fails to cooperate, however, Highland plans to "take all appropriate steps to accomplish a transaction," including seeking representation on the...

OLD FORGE, Pa. - No one's more pleased than Bobby Spencer that Golden Technologies has come out with a new line of seating for consumer power wheelchairs. "Many consumer power chairs have a bucket seat with one or two sizes available, and most people can't fit in a one or two size seat," said Spencer, a medical equipment specialist at Columbus Medical Equipment in Columbus, Ohio. "So to have a full line of seating options to meet individual needs is crucial." Until February, all of Golden's consumer...

WASHINGTON - The new Medicare Part D drug benefit comes up so woefully short when reimbursing for home infusion therapy, say providers, that some have begun reducing the services they offer patients. "There are very well established standards of care out there regarding how to treat home infusion patients and Part D doesn't recognize those things," said Lorrie Kline Kaplan, executive director of the National Home Infusion Association. "Just because Part D doesn't cover them doesn't mean they don't...