Archive: April 2007

BRENTWOOD, Tenn. - American HomePatient's net loss of $2.6 million for the year ended Dec. 31, 2006, has industry watchers wondering why the national provider, which they describe as "treading water," hasn't detailed a turnaround plan. AHP blamed Medicare reimbursement changes, especially those for inhalation drugs, for its losses. The provider posted a net income of $7.7 million for 2005. "There's a concern in my mind and on Wall Street, I'm sure, that they haven't articulated that their strategy...

I have to admit it: Like most Americans, I like the idea of competitive bidding. I mean, what's not to like? You put something out for bid, get a bunch of bidders, pick a winner or winners and go forward with a good service at a good price. At least that's how it's supposed to work. When it comes to competitive bidding for durable medical equipment, common sense tells you the same sequence of events should apply, producing a great price for CMS, and good products and services for beneficiaries. However,...

CMS's Open Door Forum on March 14 highlighted an important question: Just who is responsible for maintaining equipment once ownership passes to the beneficiary? February marked the start of equipment transfers from providers to patients under the 13-month cap rental on DME, but apparently some practical considerations--like repairs--have yet to be figured out. The question arose when a caller who works with Medicare beneficiaries asked if there were any rules in place requiring suppliers to provide...

Providers have "legitimate concerns" about CMS's Recovery Audit Contractor (RAC) demonstration, say industry attorneys. For that reason, they encourage providers to fight the audits tooth-and-nail. "My sense is that it would be a huge process but a worthwhile one in a lot of cases," said Asela Cuervo, a Washington, D.C.-based industry attorney. "There's material for appeals." Added industry attorney Elizabeth Hogue: "Providers should really be prepared to go to the wall with some of the findings...

Having a methodical routing system for drivers is a good foundation for optimizing transportation efficiencies, but HME providers also need to use all the tools available to ensure maximum savings, says logistics expert Cyndi Brandt. Brandt, marketing manager for Baltimore-based UPS Logistics Technologies, will be instructing Medtrade Spring attendees on "How to Increase Routing Efficiencies." In advance of her seminar, she offers some valuable pointers. HME News: On a scale of 1 to 10, how are...

When clinicians and providers of complex rehab think about their difficulties with Florida Medicaid, Morgan Kelly, a 9-year-old with spinal muscular atrophy, comes to mind. For more than two years, the clinicians at Tampa Shriners Hospital for Children pleaded with Medicaid officials to approve and pay for a new power wheelchair that would allow Kelly to do everyday things like eat a meal with her family at the dining room table. "I kept telling (the clinicians) to try again--I don't know how many...

When it comes to oxygen conserving devices, Bob McCoy supports setting standards. That's because there are no standards, he says. In the new second edition of his "A Guide to Understanding Oxygen Conserving Devices," almost all of the 30 conservers he analyzed deliver different oxygen doses when calibrated on the same numerical setting--in one instance more than two times as much. That's not good, McCoy said. It means unless a provider matches a patient's clinical needs with the appropriate conserver--and...

FORT LAUDERDALE, Fla. - Home Diagnostics executives believe that the company's new TRUEread blood glucose monitor could be its ticket to a greater share of the Medicare and Medicaid diabetes market. And with an $80 million dollar war chest generated last September for its initial public offering, HDI's in great shape to take on its bigger competitors, said President and CEO J. Richard Damron. "We're very excited," he said. "The domestic market for Type 2 diabetes is growing 8% annually, and we believe...

Whatever you pay an employee, plan on spending three times that in turnover costs if you have to replace him, says Richard Davis, a long-time human resources professional who now heads the HR department at Barnes Healthcare. That's why it's critical that providers identify and hire top performers who are a good fit for a position. Davis will offer pointers for finding and keeping first-rate employees in his session "Identifying and Retaining Top Performers" at Medtrade Spring. Here's a first look...

A warning from the Food and Drug Administration that daylight-saving time could cause some HME to malfunction proved to be largely unfounded, providers reported the week following the March 10 time change. "It was a big non-event," said Tim Pedersen, CEO of WestMed Rehab in Rapid City, S.D. Tom Inman, president of Virginia Home Medical in Newport News, Va., echoed Pedersen's nonchalance: "It was like Y2K--no big deal." That may be because a lot of HME isn't time sensitive. CPAP machines, for example,...