Archive: October 2003
Wheeler Dealer? Forget “sad.” It’s time to get MAD
October 31, 2003HME News Staff
Because of what may be one of the greatest continuing streaks of administrative negligence in our nation's history, and a near unbelievable amount of sheer gall on the part of CMS, the HME provider community is again under attack.
Unless something has changed unexpectedly by the time this is published, CMS and the other demigods and demagogues in DC are applying a new slew of “corrective measures” on HME providers. The overwhelming majority of these people have done nothing wrong other...
CMS extends HIPAA deadline
October 31, 2003HME News Staff
WASHNGTON - Many small HME companies breathed a collective sigh of relief when, just three weeks before the Oct. 16 deadline for HIPAA electronic transaction and code set standards, CMS announced it would accept noncompliant electronic transactions after the deadline.
CMS decided to go ahead with the extension to ensure that claims would be processed from the thousands of providers who were having trouble meeting the new HIPAA standards. Statistics showing unacceptably low numbers of compliant claims...
Region C medical director resigns
October 31, 2003HME News Staff
COLUMBIA, S.C. - Dr. Paul Metzger, who for 10 years has led the Region C DMERC as medical director, resigned Oct. 30.
Word of Metzger's plans to step down came just weeks after revelations of a huge power wheelchair scandal in Houston and a new CMS campaign, known as Operation Wheeler Dealer, to crack down on fraud and abuse.
Palmetto GBA, which administers the Region C DMERC, said Metzger's resignation was not related to the eruption of the power wheelchair scandal in Region C.
“Absolutely...
Financials
October 31, 2003HME News Staff
Consider unit-based depreciation
with Tom Pryor
Q. My accountant uses I.R.S. guidelines to depreciate capital equipment over a set number of years. I know we must do that for external compliance, but is that a good method for pricing and profitability analysis?
A. No. Time-based depreciation methods were created decades ago when the expected life of a capital asset was long and not expected to be replaced with a new technology.
Typewriters, for example, had an expected useful and depreciable life...
02 Science runs into unexpected trouble
October 31, 2003HME News Staff
TEMPE, Ariz. - O2 Science, a fast moving roll-up that's acquired or opened 17 locations since 1999, put the breaks on its acquisition activity in September when its major investor filed for Chapter 11 bankruptcy.
“I didn't think a $2.8 billion company would file for bankruptcy, but we'll be OK,” said president and CEO Mark Hanley.
DVI, a medical finance company, filed for Chapter 11 bankruptcy in September. In addition to offering loans and leases to finance the purchase of diagnostic...
Aggressive advertising comes under attack
October 31, 2003HME News Staff
WASHINGTON - Key industry players made moves in September to address Washington powerbrokers who believe aggressive advertising - especially use of the word “free” - may be driving increases in power wheelchair utilization.
Until September, The Scooter Store, the nation's largest provider of power wheelchairs, used the word “free” in its advertising. Previously, The Scooter Store promised that it - not Medicare - would give a free wheelchair or scooter to any beneficiary...
Strategy
October 31, 2003HME News Staff
CATSKILL, N.Y. - Clark Respiratory and Medical Supply opened its own compounding respiratory pharmacy in late August, and if the company's in-house poll of patients is accurate, the new business appears headed for success.
“We found out that about a third of them would be willing to bring their needs over to us, and we have quite a few hundred existing customers to tap,” said company President Jim Clark.
The company also plans to market the new offering to physicians, Clark said.
Clark...
J&J skips wound care
October 31, 2003HME News Staff
BRUNSWICK, N.J. - Johnson & Johnson, whose Band-Aid product is as general as general wound care can get, is phasing out the production and marketing of selected general wound care lines. The Band-Aid will not be among them.
But, through the rest of this year, J&J will stop making eye pads, sponges, gauze, pads, tapes and cleaners, the company stated in a letter to distributors. J&J will continue to build on its advanced wound care products.
Wound care providers, who typically buy supplies through...
Medicaid sharpens ax in Northwest
October 31, 2003HME News Staff
SALEM, Ore. - After beating back attempts by Oregon Medicaid to slash DME reimbursement by 20% across the board earlier this year, providers in the Pacific Northwest are now waging another campaign to keep the state's Office of Medical Assistance Programs from cutting two rehab miscellaneous codes, E1399 and K018, by 20%.
In Washington, the state's Medicaid program wants to cut reimbursement by 25% across the board on all DME products.
Since the states wanted to enact the new reimbursement rates...
7 indicted in Houston case; charges represent just ‘tip of the iceberg’
October 31, 2003HME News Staff
HOUSTON - Federal prosecutors have brought 101 counts of Medicare fraud and conspiracy against seven individuals in connection with the rampant explosion of power wheelchair claims in Harris County, Texas.
The indictment, which closely followed CMS Administrator Tom Scully's 10-point plan to curb abuse in the power wheelchair market, is the first in what law enforcement expects to be an extensive fraud ring in the Houston area.
“The charges brought against these individuals were merely the...