Rotech accepts 17 competitive bids; Lincare reportedly goes 0 for 9
ORLANDO, Fla. - Rotech has accepted 17 contracts awarded to it by CMS in the Round 1 re-bid of national competitive bidding, the company announced yesterday.
Lincare, however, appears to have gone 0 for 9 in the first round, according to a report from Susquehanna Financial Group.
Rotech reported in a press release that it has accepted the following contracts:
* six MSAs for oxygen supplies and equipment;
* six MSAs for enteral nutrients, equipment and supplies;
* three MSAs for CPAP, RADs and related supplies and accessories; and
* two MSAs for standard power wheelchairs, scooters and related accessories.
"We are pleased with our success in the Round 1 re-bid of the national competitive bidding program and we look forward to further growth and expansion of our existing presence in these initial cities," commented Philip L. Carter, Rotech's president and CEO in a release. "The new payment rates for our six oxygen contracts averaged approximately 30% off the current applicable Medicare payment rates. Not assuming any market share gains, the application of the new competitive bid rates to our existing patient base in these nine MSAs reduces our revenue by approximately $900,000 in the first quarter of 2011. We believe, however, that our market share gains in the cities where we were awarded contracts will more than offset the reductions in reimbursement rates over time."