In brief: Bad debt, billing error dog Rotech's earnings

ORLANDO, Fla. - Rotech Healthcare posted contractual and bad debt adjustments totaling $9.6 million for the first quarter of 2012, according to an earnings report the provider released in May. Rotech attributed the “higher than normal” adjustments to its implementation of a new electronic order intake system in the second half of 2011, which delayed paperwork. Also delivering a blow: A correction of Medicare overpayments of $2.2 million or less in each of the fiscal years 2009, 2010 and 2011, the result of a programming logic problem within the company's billing system.

Colonial Medical contracts with BCBS

ALTAMONTE SPRINGS, Fla. - Colonial Medical Supplies in May announced that it is now an in-network provider for Blue Cross Blue Shield. “While many insurance companies are taking steps to limit their expenses by reducing access, BCBS through its partnership with CareCentrix has gone the opposite direction and has increased its network of providers to give its members more choices,” stated David Bruinsma, Colonial CEO, in a release. Colonial Medical Supplies offers home medical equipment, supplies and orthotics through its locations here and in Kissimmee and Orlando.

Insurer files $14 million suit, cites DME fraud

HAUPPAGE, N.Y. - Allstate Insurance announced May 16 that it has filed a lawsuit seeking to recover $14 million in fraudulent insurance claims for durable medical equipment. The complaint names 49 DME retail companies; 16 DME wholesalers; and 46 individuals who allegedly own one or more of these companies. Allstate filed its complaint under the Racketeer Influenced and Corrupt Organizations Act. It is Allstate's fourth insurance fraud lawsuit this year in New York.

SpinLife.com gets an 'A' for customer service

COLUMBUS, Ohio - SpinLife.com in May received a top rating of “excellent” from StellaService, an independent company that evaluates the customer service of online companies. The rating is based on more than 300 elements of the customer experience, including product knowledge, helpful call support and customer equipment. SpinLife, the flagship Internet store of Columbus, Ohio-based Revolutions, offers patient lifts, bath safety and mobility products.

Relieve Medical Supply opens new showroom

COON RAPIDS, Minn. - Relieve Medical Supply celebrated its grand opening June 6 with a ribbon-cutting. The provider hosted patient education seminars and conducted a drawing for a power scooter. Relieve Medical offers a full line of home medical equipment out of its new showroom, as well as service and delivery.