NSC clarifies 21 standards

Saturday, July 31, 2004

COLUMBIA, S.C. - The National Supplier Clearinghouse has collected comments on a draft document that provides additional guidance and clarity on how to interpret the 21 DMEPOS supplier standards.

Comments on the Draft Guidance were due June 28. A final draft that incorporates the comments is expected by year’s end.

“They didn’t rewrite the supplier standards - they are just better defining them,” said Seth Johnson, director of government affairs for Pride Mobility Products. “They are providing more clarity, which is good.”

A few examples:

- Standard #3 now states that an authorized individual (one whose signature is binding) must sign the application for billing privileges. The Draft Guidance defines and authorized representative as a “DMEPOS supplier’s general partner, chairman of the board, chief financial officer, chief executive officer, president, direct owner of 5% or more of the enrolling DMEPOS supplier or must hold a position of similar status and authority within the DMEPOS supplier’s organization.”

- Supplier standard #4 states that a supplier must fill orders from his own inventory or contract with other companies for the purchase of items to fill those orders. The Draft Guidance states, among other things, that “to show compliance with this standard, a supplier must have at least $25,000 of inventory in stock ... If a supplier is unable to show that $25,000 worth of inventory is already in stock, then the supplier must have contract(s) from other companies equaling this amount in credit.”

- Supplier standard #7 states that a provider must maintain a physical facility on an appropriate site. The Draft Guidance defines an “appropriate site” as a facility containing a “minimum of 250 square feet.”