In brief: Report licensure issues, beware neb-med reviews

Thursday, January 19, 2012

BALTIMORE - CMS is asking providers who have problems related to out-of-state licensure requirements in Round 2 competitive bidding areas to contact the Competitive Bidding Implementation Contractor. Providers in the Philadelphia CBA, which encompasses Pennsylvania, Delaware, Maryland and New Jersey, have had a difficult time obtaining the required Residential Service Agency license for Maryland. Providers can report concerns by calling 877-577-5331.

ATG Rehab grows in Colorado

ROCKY HILL, Conn. - ATG Rehab announced Jan. 16 that it has acquired the complex rehab segment of Denver-based Rocky Mountain Medical Equipment. The deal gives ATG Rehab five ATPs and 3,100 rehab customers from Rocky Mountain's locations in Colorado Springs and Denver. Rocky Mountain will continue to offer its other product lines and services through its Denver location. The acquisition is ATG Rehab's fifth since January 2011, when it gained backing from Audax Private Equity.

Arriva acquires Direct Diabetic

CORAL SPRINGS, Fla. - Mail-order diabetes provider Arriva Medical has acquired Sunrise, Fla.-based Direct Diabetic Source for $5 million. Terms of the deal, which was announced Jan. 12, included a cash payment of $2.5 million and contingent payments expected to total another $2.5 million. Direct Diabetic Source had about 25,000 active customers.

Neb-meds claims: More than half denied

WASHINGTON - From September 2011 through December 2011, J7626 had an error rate of 59% and J7605 had an error rate of 58%, according to a widespread review of nebulizer drugs by Noridian, the Jurisdiction D DME MAC. The top reasons for denial included: requested documentation not provided within the allotted timeframe; no proof of medical necessity; no beneficiary evidence of exhaustion submitted for refills; and no proof of delivery or invalid proof of delivery.

Growth predicted for POCs

WELLINGBOROUGH, U.K. - The world market for oxygen therapy devices is expected to hit $1.1 billion by 2015, according to a new report from InMedica, a medical research group. Driving that growth is an aging population, an increase in COPD, and increased demand for portable oxygen concentrators (POCs). InMedica estimates that global revenues for POCs will increase from $153.1 million in 2011 (15.5% of global revenues) to $228.3 million (20.1%) by 2015.