In brief: CMS issues surety bond reminder

BALTIMORE -To comply with the surety bond requirement that kicks in Oct. 1, providers must make sure each of their "practice locations" are enrolled in the Medicare program, CMS reminded them last week. Each location must have its own national provider identifier (NPI) and provider transaction access number (PTAN). "There should be a 1-to-1 relationship between a supplier's NPI and PTAN," CMS stated. The National Supplier Clearinghouse (NSC) assigns PTANs to providers when they enroll in the Medicare program. CMS noted: Providers who are sole proprietorship business structures with more than one practice location must ensure that each location is enrolled in Medicare and has a PTAN. The agency continued: "However, as a sole proprietorship, the business is legally one and the same as the person who is the sole proprietor and, therefore, like any individual, is eligible for only a single NPI."



Dynamic Energy Systems becomes MedAct Software

MCKINNEY, Texas - Dynamic Energy Systems announced Aug. 5 that it is rebranding itself as MedAct Software to reflect its core competency and focus. As part of its rebranding effort, MedAct Software has launched a customer testimonial campaign featuring HME providers and medical billing service providers. "Spotlighting our customers in all of our messaging demonstrates how we value our customers and enjoy promoting how they have been successful as business owners," stated Lorraine Lodigiani, manager of business development. Gregg Timmons was appointed CEO of MedAct last week, effective immediately; Geoff Kearney, the previous CEO, will continue as company chairman and manage its board of directors.



CMS tightens loan closet rules

BALTIMORE - CMS on Aug. 7 issued a memo seeking to clarify and define loan closet arrangements between HME providers and physicians. Effective Sept. 8, such arrangements, including consignment closets and stock and bill arrangements must meet current quality standards. Most do not, it says.

In addition to existing supplier standards, the memo outlines additional standards, including: The title to the DMEPOS shall be transferred to the enrolled physician, non-physician practitioner practice at the time the DMEPOS is furnished to the beneficiary; The physician or non-physician practitioner shall bill for the DMEPOS supplies and services using their own enrolled DMEPOS billing number; All services provided to a Medicare beneficiary concerning fitting or use of the DMEPOS shall be performed by individuals being paid by the physician or non-physician practitioner's practice, and not by any other DMEPOS supplier; and The beneficiary shall be advised that if he or she has a problem or question regarding the DMEPOS, then the beneficiary should contact the physician or non-physician practitioner, and not the DMEPOS supplier who placed the DMEPOS at the physician or non-physician practitioner's practice.