Archive: June 2008

WASHINGTON--CMS announced in May a one-time competitive bidding transition policy for providers supplying Group 3 single- or multiple-power option mobility devices to beneficiaries in 10 competitive bidding areas. Per the transition policy, CMS will pay both contract and non-contract providers who began furnishing services related to providing these devices before July 1, 2008, but who do not deliver them until July 1, 2008, or later. The transition policy applies to claims for which the provider...

WASHINGTON--June 12 will be a day to remember for the home medical equipment industry. On that day, it managed not only to get a bill introduced that would delay national competitive bidding but also to stave off another attempt to cut oxygen and power wheelchair reimbursement. Competitive bidding On June 12, Rep. Pete Stark, D-Calif., introduced a bill that would terminate Round 1 contracts and re-bid them in 18 or 24 months. H.R. 6252 would also delay Round 2 until at least 2011. The Senate...

CAMDEN, Maine--Waltz Pharmacy sold its prescription business to Rite Aid and closed its Camden, Belfast and Pittsfield pharmacies in June. In a press release, the company cited increasing competitive pressures, a pharmacist shortage and decreasing Mainecare reimbursement as factors in the decision. The company planned to focus its efforts on its HME business.

AKRON, Ohio--Bargmann Management has created a very nice niche for itself helping providers collect patient copays. The company now wants to lend a hand with the reordering of CPAP masks and supplies. Bargmann officially launched Sleep Success Services in late May. The program, which had been in the testing phase for several months, “allows (providers) to focus on clinical care while outsourcing the re-ordering of their patients” masks, tubing, filters, cushions and other supplies. There...

John Gallagher was not surprised when, at a meeting of the American Lung Association in Wisconsin in June, the audience of patients and clinicians had no idea what competitive bidding would mean for them. “They were clueless,” said Gallagher, vice president of government relations for The VGM Group. Hopefully, that will change. During a conference call in June, CMS said it planned to start mailing packets to beneficiaries by June 20 containing a cover letter; a brochure; a list of Medicare-approved...

It appears that at least one national HME provider plans to boost its competitive bidding winnings by acquiring other contract providers. In late May, soon after CMS released the contract providers for Round 1, rumors began flying that Clearwater, Fla.-based Lincare had acquired or was in the process of acquiring a big winner in the Miami and Orlando competitive bidding areas with contracts for oxygen and other products. CMS lists Lincare as a contract provider for oxygen, it's bread-and-butter,...

Expect competitive bidding to muddy the waters in the negative pressure wound therapy market as key players Medela and KCI sit out the first round. “We couldn't deliver the type of therapy we have historically offered at that price,” said Woody Staub, president of global vacuum business for KCI. The average cut to the fee schedule for NPWT was 14%. That's not too steep compared to other product categories, but treating and billing for the equipment is complicated and time consuming,...

MENTOR, Ohio--Wheelchair Getaways has changed its name to Ability Van Rentals. The Mentor, Ohio-based company still provides wheelchair van rental service via stores in Cleveland, Columbus, Cincinnati and Dayton. The company's minivans or full-sized vans feature raised roofs or lowered floors and automatic ramps or lifts. Rentals cost $99 for one day; $89 per day for three to six days; and $79 per day for seven to 29 days. Ability Van Rentals provides vehicle pick-up and delivery, as well as 24-hour...

Just because CMS has given the industry little guidance about subcontracting for national competitive bidding, doesn't mean contract providers have free reign to craft any type of agreement they want, industry attorneys warn. Contract providers, attorneys point out, must still comply with anti-kickback statutes. “There's an awful lot of subcontracting interest and activity, and I expect that's going to result in a lot of subcontracts,” said Neil Caesar, president of the Health Law Center...

WASHINGTON--Legislators asked and on May 22 they received. During a call-in and Capitol Hill visits in April, legislators told providers that they wanted to hear from consumers and clinicians that complex rehab should be excluded from national competitive bidding. During another call-in May 22, they heard from about 1,100 consumers and clinicians. “In my view, this is unprecedented,” said Paul Bergantino, an NCART board member who helped organize the call-in. “The consumers and...