Archive: February 2013

MINNEAPOLIS - A federal judge may have granted the government's request to dismiss a competitive bidding-related lawsuit filed against CMS by a specialty HME provider, but that doesn't mean he thinks justice was served.“This is a sad day for those who believe that when a judge adheres, even-handedly, to his or her oath of office, justice will prevail and the public interest will be served,” U.S. District Judge Donovan Frank wrote in a memorandum.Shoreview, Minn.-based Key Medical Supply,...

WASHINGTON - A prepayment review of power wheelchair claims processed in Jurisdiction B resulted in an 80% error rate, according to National Government Services (NSG), the DME MAC there. Of 1,022 claims processed from Oct. 1 2012­-Dec. 31, 2012, 122 were paid in full, while the remaining claims were completely or partially denied, according to the review. The most common reasons for denials were: Local Coverage Determination (LCD) criteria not met; face-to-face examination with a physician not established;...

WASHINGTON - A prepayment review of intermittent catheterization kits processed in Jurisdiction B resulted in an 85.6% error rate, according to National Government Services (NGS), the DME MAC there. Of 257 claims processed from Sept. 1-Dec. 31, 2012, 220 were denied, according to the review. The most frequent denial—“failure to meet one or more of the required coverage criteria”—accounted for 37% of denied claims. Sixty-one of the claims were denied because the requested documentation...

NEW BRAUNFELS, Texas - A week after federal and state agencies raided its headquarters, The Scooter Store released a statement saying it is complying with the investigation.“We respect the government's investigation and will continue to work with investigators to make sure they have access to the information they need to conclude their activities,” stated Marty Landon, CEO of The Scooter Store.Neither The Scooter Store nor the FBI has stated the reason for the investigation. When asked...

WASHINGTON - A pair of lawmakers have asked the Government Accountability Office (GAO) to study the impact of a 72% cut, on average, to reimbursement set to go into effect July 1 as part of a national mail order program for diabetes supplies. In a letter, Reps. Diana DeGette, D-Colo., and Ed Whitfield, R-Ky., co-chairs of the Congressional Diabetes Caucus, stated they are “concerned about what it will mean for beneficiaries' access to diabetes testing supplies (DTS) and their ability to maintain...

FORT MYERS, Fla. - Signature Sleep Services (d/b/a Sleep 960) and C-PAP Horizon Project have agreed to integrate their sleep products and services, and combine their marketing efforts, according to a press release. Sleep960 provides diagnostic and therapy products, consultation and management services, and PSG educational courses. C-PAP Horizon provides technology and business services for HME providers who specialize in sleep therapy. Previously, some products did not share data and were not designed...

There's often a wide gap between what an HME provider thinks his business is worth and what an investor will actually pay, according to Craig Hittle of Somerset CPAs. At Medtrade Spring, Hittle will offer some perspective on what your company might be worth, and how to strengthen it for maximum valuation. HME News: What are the factors most impacting valuations right now?Craig Hittle: In this particular industry, valuations are built on future cash flows of the business. In the current environment,...

WASHINGTON - The Food and Drug Administration (FDA) must weigh carefully the benefits and burdens of a proposed rule that most medical devices include a unique device identification (UDI), according to AAHomecare.In comments submitted recently, the association stated that it supports the FDA's goal of improving patient safety, but it worries the system could put an administrative and financial burden on manufacturers and providers.“The manufacturers have the issue of bringing everything up...

Pat O'Brien recalls an old episode of The Cosby Show in which Dr. Huxtable goes to buy a car in a sloppy sweatshirt and jeans so the salesperson wouldn't know he has money and would give him a better price. “That's what people do,” says O'Brien. “There are 77 million baby boomers and they control a ridiculous amount of money.” Here's a look at the tips O'Brien will offer Medtrade Spring attendees to tap into that potential for cash sales.HME News: What's an example of advice...

Louis Feuer has been presenting at Medtrade since 1987, one of the longest tenured speakers in the industry. He's seen it all over the years, and thinks HME providers can learn a lot by the example of Walt Disney and the Disney business model. Feuer will bring his Mickey Mouse ears and gloves to Medtrade Spring, along with his Disney-inspired lessons.HME News: Why Disney?Louis Feuer: There are very few organizations worldwide that focus on customer service like Disney. Disney created an experience...