Archive: November 2005

WASHINGTON - The Health Care Fraud and Abuse Control Program continues its success in prosecuting cases of DME and other kinds of healthcare fraud, the agency reported in October. In fiscal year 2004, the federal government won or negotiated $605 million in judgments and settlements. In its eight-year existence, the HCFAC has returned more than $7.3 billion to the Medicare Trust fund. Recent successes for HCFAC include a $382 million payment from Abbott Laboratories to the federal government and...

YARMOUTH, Maine - Now that the initial shock from CMS's dispensing fee implosion has subsided, a frazzled HME industry is wondering who--if anyone--will be dispensing respiratory medications next year. One thing appears certain at this point: No one really knows. Despite being braced for a vigorous blow, the jolt from CMS's planned fee drop in early November rattled even the steadiest nerves (See story page 1). AAHomecare officials said they were "deeply disappointed" with the CMS plan, noting that...

LEXINGTON, Ky. - Grogan's Healthcare Supply has acquired VDK Turning Point, a women's health boutique specializing in mastectomy, maternity and related services. With the move, the 45-year-old company brings a niche back into the fold. "We had been in the mastectomy business for years and when they opened seven years ago, the appeal of their philosophy made a lot of good sense but it wasn't something we were able to duplicate," said Alan Grogan, president. "Over a period of seven years, they ended...

Q. I'm a small business owner with limited resources for marketing. Outside of visiting referral sources, we've never spent much money on marketing. How do we ramp up our efforts without breaking the bank? A. It's a common misperception among small business owners that marketing requires a big budget and an experienced marketing staff. Although some things are best left to professionals, there are many things you can do on your own with some hard work and creativity. Here are a few tips: Know...

WASHINGTON - CMS slashed the respiratory-med dispensing fee from $57 to $33 a month Nov. 2, sending shock waves through the industry, which had hoped for a less drastic cut. "It's terribly bad news for an industry that's been hit over and over again," said AAHomecare Chairman Tom Ryan. "I had hoped for a better outcome, but nothing surprises me of late." "Can you actually dispense and ship and follow up for $33?" asked one industry insider. "Maybe somebody running really efficiently with volume...

YARMOUTH, Maine - In the weeks after the switch from CMNs to doctor's prescriptions for power mobility devices, rehab providers found themselves spending more time educating physicians and less time providing equipment. "It's total chaos," said Don Whitney, operations manager for Inland Medical and Rehab in Spokane, Wash., in early November. "Up until 10/25, I was delivering power [wheelchairs and scooters] every day. I haven't delivered one since, and I don't foresee that I'll deliver any in the...

NORCROSS, Ga. - A medical gas distributor that bills itself as "the UPS of oxygen" is making a pitch for respiratory providers to let them take over deliveries of cylinders and liquid oxygen. The delivery service, known as LifeGas Express, has actually been around since the mid-1990s, but the company recently decided to expand into more than half the country, from Texas to the East Coast. LifeGas is promoting its oxygen delivery method as a way for respiratory providers to improve operational cost...

GOLETA, Calif. - Inogen has nearly completed the voluntary recall of its Inogen One portable oxygen concentrator. In mid-2005, the company began recalling and upgrading roughly 900 of the units with improved software, controls and other components. As of last month, about 90% of those units had been upgraded, said Daryl Risinger, Inogen's vice president of marketing. Originally, Inogen planned to visit provider locations and upgrade the units, but then decided to do the work at its manufacturing...

ATLANTA - Providers should steal a page from manufacturers when it comes to driving out cost from their business operations, according to Wallace Weeks. Manufacturers have been able to cut the price of oxygen concentrators, for example, from $900 to $500 since 1997, despite an inflation rate of 3%, pointed out Weeks, president of the Weeks Group in Melbourne, Fla. How? Technology. Providers who harness technology like GPS systems can drive down labor costs, their second largest expense, and add up...

These are scary and difficult times for all providers, but more difficult and more scary for some than for others. Over the past few years, spurred on by dwindling Medicare reimbursement, manufacturers have continued to develop technology designed to reduce the operational costs that providers grapple with daily. Those efforts continue. Whether we're talking about portable concentrators, telemonitoring devices and other technology designed to reduce deliveries, e-CMNs or Web-based applications such...