Archive: September 2007

Industry sources fear not enough therapists seek to become RESNA-certified ATPs, a situation that could leave rehab providers and beneficiaries in the lurch come spring Mark Schmeler, a faculty member at the University of Pittsburgh, reports "lukewarm" participation for the review courses and Webinars he offers therapists preparing to take the ATP exam. Schmeler pointed out that it takes months to become certified--from studying to registering to receiving test results. "It's like applying for college--you...

WASHINGTON - CMS should not make providers with good track records obtain surety bonds, says AAHomecare. Instead, the agency should require only providers who pose a risk to get a $65,000 surety bond for each of their national provider identification numbers (NPI). Congress mandated the surety bond requirement in The Balanced Budget Act of 1997 (BBA). CMS issued a proposed rule in 1998, but never finalized it. The agency initiated a new rulemaking proceeding in August. AAHomecare said the new...

SAN ANTONIO, Texas - You want dominant market share? KCI has it. Analysts at Wachovia Capital Markets estimated in August that KCI owns a whopping 89% share in the $1.2 billion market for negative pressure wound therapy (NPWT). That jibes with information HME News obtained from CMS in July. In ranking the top 100 HME providers for total Medicare allowed charges in 2006, CMS reported that KCI checked in at No. 4, with $159.3 million. (That's not chicken feed, but it's well behind Lincare, the top...

ELGIN, Ill. - On June 30, Total Home Health employed 80 people in one location. On July 1, the provider had 140 employees spread across seven branches in four states, working to transition its new oxygen patients onto its service. Such are the challenges when a provider wins a Department of Veterans Affairs (VA) contract, said Alan Kirk, vice president of the nearly 40-year-old family-owned company. "We read that it was up for bid so we thought, 'What the heck, let's give it a shot,'" said Kirk....

MARSHALLTOWN, Iowa - Before the doors even opened at Hammer Medical's newest branch, the phones were ringing. "We're a full-service DME and we've been in business since 1872," said Terry Flatt, vice president and co-owner. Hammer specializes in mobility, oxygen and sleep equipment and carries a full range of medical supplies. Flatt is banking on Hammer's one-stop shop approach for success at its eighth location in a town of 25,000 that's being served by two nationals with a focus on respiratory....

KEWANEE, Ill. - A new provider has set up shop here, supplying the community with everything from wheelchairs to specially modified vans, according to an Aug. 3 article that appeared in a local newspaper. The president of Accessing Your Abilities, George Giesenhagen, worked for 10 years at Classic Coach, a provider of converted vans. John Kolata is vice president of operations, and Dean Petty is vice president of home sales. Accessing Your Abilities is located in a former auto dealership on North...

SACRAMENTO, Calif. - A 51-day budget stalemate caused California HME providers to go several weeks without payments from the state's Medicaid program. The state Senate approved a $145-billion spending plan Aug. 21, but not before providers were forced to take drastic measures like laying off employees, leveraging credit lines and halting deliveries. "We haven't had a check in about six weeks," said Mark Ehlers, owner of Ehlers Health Supply in Stockton, Calif., the day after the budget passed. "They...

Providers and other stakeholders continued to call and meet with Washington lawmakers during the August recess, asking them to support several industry-related bills and fight two new provisions. The industry stumped for bills to lessen the blow of national competitive bidding (H.R. 1845 and S. 1428), eliminate the 36-month cap on home oxygen reimbursement (H.R. 621 and S. 1484) and carve out complex rehab from competitive bidding (H.R. 2231). Additionally, it fought a bill drafted by the U.S. House...

INDIANAPOLIS - New coding, coverage criteria and pricing for power mobility devices has pushed Ron Reed, like many other rehab providers, to reassess his business. But unlike many other providers, he's not necessarily diversifying his product mix. "We're continuing to focus on what we've always focused on, just not in the same fashion," said Reed, owner and CEO of Benchmark Mobility. "We're marketing horizontally instead of vertically." Reed plans to strengthen his relationships with HMOs and hospice...

OREM, Utah - Petersen Medical, a provider known mostly for its home oxygen products and services, acquired Access Medical in August, making it a player in power mobility devices nearly overnight. "We do some rehab right now, but compared to some of our competitors, it's not that much," said Tom Bradley, owner and president of Petersen Medical. "We'll be very competitive in that market now." Currently, home oxygen comprises about 70% of Petersen Medical's product mix, and rehab comprises about 15%,...