CMS data shows sharp decline in number of HME providers

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Thursday, April 27, 2017

WASHINGTON – Nearly 41% of HME providers have dropped Medicare since July 2013, according to AAHomecare.

That was when Round 2 of the competitive bidding program kicked off in 91 cities with an average reimbursement cut of 45%.

Three states—California, New York and New Jersey—saw declines of more than 60%, while the District of Columbia saw a decline of 85.7%, according to data AAHomecare analyzed from the Medicare Supplier Directory.

Bigger picture, the association found the total number of unique companies dropped from 10,465 in July 2013 to 6,181 as of April 2017; and the number of unique locations declined 38.7%.

By comparison, the number of Medicare beneficiaries increased 8.6% from 2013 to 2016.

With the application of bid pricing to non-bid areas beginning Jan. 1, 2016, the decline has accelerated, with a 26.4% reduction in HME providers and a 23.3% reduction in total locations, according to AAHomecare.

“AAHomecare plans to highlight this data in our advocacy efforts on Capitol Hill and at CMS,” said the association in its weekly bulletin. “HME suppliers and other stakeholders are encouraged to reference both national and state data in your contacts with legislators.”

AAHomecare pulled from the Medicare Supplier Directory using counts for companies and locations providing beds, negative pressure wound therapy, support surfaces, wheelchairs and accessories, respiratory and oxygen products.