VGM quantifies impact of bid program
By HME News Staff
Updated Wed September 21, 2016
WATERLOO, Iowa - Ninety-one percent of respondents to The VGM Group's “Supplier Impact Survey” strongly agree that the national rollout of competitive bidding has had a negative impact on their business.
Fifty-eight respondents say they have eliminated between one and five positions since the bid program hit non-bid areas on Jan. 1. An additional 14% say they have eliminated between six and 15 positions.
Seventy-four percent of respondents also say they are billing more claims non-assigned, or plan to.
“This data has been spread throughout congressional offices,” VGM stated in a bulletin to members. “A long-term replacement to the competitive bidding program must be put in place that does not produce negative outcomes, where patients struggle to receive the equipment that they need.”
More than 400 providers responded to the survey. Fifty-seven percent of them say they have at least 50% or more of their patient base in rural areas.
CMS rolled out bid pricing to non-bid areas in two phases on Jan. 1 and July 1. Together, the two phases represent an average cut in reimbursement of 50% to 60%.
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