Archive: May 2007

Q. I want to see how competitive bidding pans out in the first 10 areas before getting accredited. Is this a good strategy? A. Absolutely not! CMS has not set a date yet, but ultimately, all HME providers must be accredited. It's going to happen. Start the accreditation process ASAP. Of course, if you plan to leave the industry, don't bother; your accreditation status may not transfer to the new owners without an additional survey. If your plan is to remain in the industry, however, then get accredited...

WATERLOO, Iowa - The VGM Group criticized CMS's plan for national competitive bidding sharply in mid-April, claiming the program disproportionately targets poor and Latino beneficiaries. After analyzing U.S. Census Bureau data, VGM concluded that people living below the poverty level in the initial 10 competitive bidding areas range from 13% (Charlotte, N.C.) to 32% (Cleveland). Across these 10 areas, the poverty level is 19%, compared to 13% nationally. The census data also revealed that 31% of...

WATERLOO, Iowa - A large association of independent pharmacists has turned to The VGM Group to help its members enter the HME market or improve their existing equipment businesses. Scheduled to launch June 1, the CP Advantage Program offers the National Community Pharmacists Association's 24,000 members three levels of participation based on their business needs. Among the services NCPA members can participate in depending on their membership level: pharmacy accreditation; participation in managed...

LAS VEGAS - The on-again off-again relationship that's marked VGM and Invacare over the years is on again, and this time in a very big way. The two industry titans--the largest HME manufacturer (Invacare) and largest provider service organization (VGM)--joined forces in late April to help providers and themselves maneuver through national competitive bidding. The companies announced the new relationship April 25 at Medtrade Spring in Las Vegas. "We are in a fight for our lives, and we intend to fight...

I was flabbergasted when I read through Jim Sullivan's front-page story in the April issue of HME News and saw that 25% of NewsPoll respondents considered accreditation "too expensive, irrelevant, a waste of time and a problem to deal with on another day." Upon reading that dismaying response, my thoughts immediately turned to CMS's inner sanctum, the OIG and Capitol Hill--most notably former Rep. Bill Thomas' office--wondering if they were reading along, smugly nodding their heads in affirmation...

ARLINGTON, Va. - RESNA expects to have an above average turnout for its annual conference this month, thanks in part to a Medicare requirement that pushed its ATS and ATP credentials to the forefront. "For the exams we hold at the conference--we've already reached the level of past years and we're still a month away from the deadline for applications," said Executive Director Tom Gorski in mid-April. "We definitely expect it to be larger than in the past." Beginning April 1, 2008, CMS will require...

WASHINGTON - The Scooter Store participated in a new program called "Honor Flight" by donating dozens of power wheelchairs and scooters to help disabled veterans visit the WWII Memorial on April 21. Employees of The Scooter Store also volunteered their time to attend the event and help veterans. "Many of these senior heroes break down and cry when they are offered an opportunity to see their memorial," said Earl Morse, a physician assistant and retired U.S. Air Force captain who conceived the program....

The desire among HME providers to migrate away from Medicare dependence has not been lost on mobility manufacturers. They report interest in retail scooter sales reaching unprecedented levels. Falling reimbursement rates and competitive bidding for durable medical equipment have left HME providers reportedly scrambling to find alternative sources of revenue to counter the deficit. And for pure cash sales potential, scooters are in a class by themselves, vendors say. "When it comes to selecting a...

CLEARWATER, Fla. - Lincare CFO Paul Gabos has sold 120,000 shares of common stock under a prearranged trading plan, according to a Form 4 filed April 9 with the Securities and Exchange Commission (SEC). Gabos exercised the options for $24.50 each, and then sold them the same day for $38 each, turning a $675,000 profit. Prearranged 10b5-1 trading plans allow company insiders to sell shares, even though they may have material nonpublic information. Lincare CEO John Byrnes sold 50,000 shares of common...

Blown away by CMS's decision to include complex rehab in the first round of national competitive bidding, providers in April scrambled to prepare bids. Providers and industry groups like NCART and NRRTS also put muscle behind a last-ditch effort to exempt the product category from the program (See story right). "It was a surprise," said Jerry Keiderling, vice president of The VGM Group's U.S. Rehab. "We were pretty much told that (CMS) understood our concerns, and complex rehab wouldn't be included....