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Archive: March 2006


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Education pays off

March 31, 2006HME News Staff

Q. What is the best way to educate physicians on CMS's new documentation requirements for power wheelchairs? How can we ensure that physicians' records document medical necessity? A. You must develop or obtain a condensed but thorough education guide for physicians and their office staff. The physician education guide should include the following information: - Does the patient have a mobility deficit that prevents him/her from performing one or more mobility related activity of daily living in his...

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HME nemesis Bill Thomas announces his retirement

March 31, 2006HME News Staff

WASHINGTON - The industry breathed a collective sigh of relief last month when Rep. Bill Thomas, R-Calif., the man behind the recent 36-month cap on Medicare oxygen payments and other HME cuts, announced he would not run for re-election in November. Thomas' decision to enter the private sector and step down from his post as chairman of the powerful Ways and Means Committee, however, does not mean that the industry can let down its guard. "You've got a budget deficit and the reality is that they...

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Earnings reports

March 31, 2006HME News Staff

Just like Apria and Lincare, Rotech Healthcare's recent financial performance suffered in 2005 due to cuts in Medicare reimbursement, the Orlando, Fla.-based company reported in late February. Rotech reported net earnings of $4.3 million for the quarter ended Dec. 31, 2005, compared to net earnings of $8.9 million for the same period last year...By integrating operations and completing more than a dozen acquisitions, Southfield, Mich.-based Arcadia Resources reported $33.3 million in revenues for...

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It's true: Prosecution for fraud on the rise

March 31, 2006HME News Staff

Q. I have heard that the federal government has recently stepped up prosecuting DME suppliers for various violations like paying kickbacks or submitting false claims. Is there anything suppliers should be particularly careful about? A. Healthcare fraud enforcement has increased substantially over the last few years and DME companies have been significant targets. The government believes that some DME companies are involved in illegal schemes. In response, the government has increased prosecution...

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Ask the DMERC MDs

March 31, 2006HME News Staff

CMS recently released instructions about the new CMNs and DMERC Information Forms (DIFs). In addition to providing the updated forms, transition instructions were provided. This month we'll discuss these documents. CMNs provide a mechanism for the DMERCs to screen claims to see whether selected coverage criteria have been met. First, the CMNs for power operated vehicles, manual and power wheelchair bases have been eliminated effective April 1, 2006. Since the transition for these is complete, we...

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H.D. Smith goes all out for HME biz

March 31, 2006HME News Staff

SPRINGFIELD, Ill. - With the launch of a new Web site, a beefed up sales force and an expanded home health catalog, pharmaceutical wholesaler H.D. Smith continues to push hard to expand its presence in the HME marketplace. "We have products, sales people, expertise and we deliver the next day," said Avi Weiss, Smith's director of homecare. "We're in this for the long haul." In January, the distributor unveiled its new HomeCare Connection Web site, which allows providers to order online for the first...

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Great service begins at the top

March 31, 2006HME News Staff

Q. As Medicare reimbursement cuts once again force the HME industry to tighten its belt, how can providers continue to maintain a high level of customer service? A. There is no better time to focus on the customer than when times are changing, reimbursement is shrinking and there is competition to contend with. As the competition talks about cutting back service, think of the many ways that you can enhance what you offer and still not sacrifice the profit margin needed to operate the business. The...

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Apria, MSD ink distribution deal

March 31, 2006HME News Staff

STOUGHTON, Mass. - Medical Specialties Distributors (MSD) and Apria Healthcare signed a three year primary distribution agreement last month, naming MSD as Apria's primary supplier of healthcare products. MSD will provide IV therapy kits, needles, syringes, general wound care, and pharmacy and clean room supplies to all of Apria's infusion pharmacies located throughout the United States.

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Sequal lines up product financing

March 31, 2006HME News Staff

SAN DIEGO - SeQual Technologies has raised $4.35 million from new and existing investors. It will use the money to manufacture, market and sell its new 17-pound concentrator, the Eclipse, according to a February release. The unit offers both pulse and continuous flow up to 3 liters per minute to serve the stationary and ambulatory needs of patients. SeQual introduced a prototype of the product at Medtrade last fall, and it expects to launch a commercial version this spring.

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New rule: Providers are still in the dark

March 31, 2006HME News Staff

WASHINGTON - CMS released a transmittal March 10 with some new guidance for power mobility device claims, but once again, the document failed to address the industry's biggest concern with the agency's new rule. "This is helpful, but is it what we were looking for?" asked Cara Bachenheimer, vice president of government relations for Invacare. "No. We're really looking for more details on physician documentation requirements." The industry has waited for guidance from CMS since late December, when...

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