CPS Medical to turn 40

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Monday, April 29, 2019

TYLER, Texas — CPS Medical has weathered a number of storms over the last four decades, but reimbursement cuts to oxygen therapy has been the provider’s greatest challenge to date.

CPS Medical, which officially turns 40 on January 1, 2020, offers a full line of DME, minus diabetic supplies. 

When the family-owned provider opened its doors in 1980, it was being paid $225 a month for oxygen therapy.

“If you look at that in 2019 dollars, that's about $600 a month,” said Kevin Hill, president and founder. “We’re being paid about $80 a month now for providing the same service and if you look at that in those dollars back then, that's about $18 a month. So you can see the financial gap that has occurred.”

In 2010, there were approximately 200 DME companies in the Dallas-Fort Worth metroplex. Today, there’s 36. To stay in business for 40 years, Hill says people have to work harder for less and the frills are gone. 

“I had a fella call the other day and he chewed me out. He said (his previous provider) used to come out once a month and check on him and we used to do the same thing, because there was enough money in it to check on somebody,” he said. 

Nowadays, there’s not even enough money to pay for the gas and auto expenses.

Over the years, CPS Medical has come up against a number of challenges from the 36-month oxygen rental cap to the rollout of competitive bidding, but the thing that keeps Hill and his team going are the patients.

“Our mission is to be a service to the community,” said Hill. “And I think you’ll find that's true of any kind of DME out there that’s still in business.”