Number of unlicensed contract suppliers tops 100 in Maryland

BALTIMORE - Add Maryland to the growing list of states where there are confirmed reports of Round 2 contract suppliers that don't meet licensure requirements.

The Maryland Office of Healthcare Quality, which licenses and certifies healthcare facilities, has confirmed to the Maryland National Capital Homecare Association (MNCHA) that there are more than 100 contract suppliers that don't have the licenses they need to legally serve patients.

“Across Maryland, licensed providers are outraged at the prospect of transferring their patients to unlicensed providers,” stated Ann Horton, executive director of MNCHA in a press release. “It is shocking that Medicare can simply choose not to follow their own rules, while awarding the majority of Maryland contracts to out-of-state providers.”

Per Medicare's rules, providers that submitted bids had to meet licensure requirements in the areas they submitted bids by May 1, 2012. The three areas in Maryland are Baltimore-Towson, Washington-Arlington-Alexandria and Philadelphia-Camden-Wilmington.

Other states that have reported similar issues include Tennessee, Ohio and Michigan.

Industry stakeholders have used the information to press lawmakers for a delay in the July 1 start date of Round 2. A “Dear Colleague” letter being circulated by Reps. Glenn Thompson, R-Pa., and Bruce Braley, D-Iowa, currently has 143 signatures with more expected by its June 7 deadline.

CMS has sent letters to unlicensed and/or unaccredited contract suppliers stating that they must have licensing in place by July 1, but stakeholders say, in many cases, that isn't feasible.