Archive: August 2004
Lifestyle cleared for take-off
August 31, 2004HME News Staff
WASHINGTON - The AirSep Lifestyle portable oxygen concentrator is one step closer to being sanctioned for use on U.S. airliners under a proposed new Federal Aviation Administration rule.
Published in the July 14 edition of the Federal Register, the FAA proposal endorses the Lifestyle for in-flight use on domestic commercial aircraft. Although “an important step” toward becoming official policy, the agency is seeking comments for continued review.
While waiting for a final decision to...
Praxair finally gets ‘serious’ about HME
August 31, 2004HME News Staff
DANBURY, Conn. - Three years ago, some industry insiders watched with amusement as industrial gas giant Praxair moved gingerly in the home medical equipment market, like a swimmer testing the water with his toe.
“If they are going to get serious about home respiratory and the broader HME business, they've got to make major acquisitions and not onesies and twosies,” scoffed one guru. “That makes sense for Lincare because they are rounding out their network, but not Praxair.”
Well,...
Apria calls acquisitions ‘unprecedented’
August 31, 2004HME News Staff
LAKE FOREST, Calif. - Apria spent $67 million in the second quarter to acquire an “unprecedented” 14 companies, according to CEO Lawrence Higby.
In the first quarter, Apria acquired seven companies for $42 million.
“We're well on our way to achieving our revised full year target of $130 million (in acquisitions),” Higby stated in the company's second quarter financial report. “For 2004, we expect revenue to grow in the 5-6 percent range do to the expansion of our respiratory...
CMS, industry find common ground
August 31, 2004HME News Staff
WASHINGTON - CMS agrees with industry leaders that physician progress notes should not be the sole documentation used to determine whether a beneficiary qualifies for a power wheelchair.
Medicare officials made that clear during a July 16 meeting with Restore Access to Mobility Partnership, a coalition of power wheelchair providers and manufacturers
At the meeting with CMS, RAMP members discovered that a disconnect exists between how CMS thinks medical review is being conducted and how the DMERCs...
Providers crunch the numbers
August 31, 2004HME News Staff
VIDALIA, Ga. - Biram Chapman hired his first CFO in July, and the HME owner seems to have done it for all the right reasons, say industry consultants.
“I wouldn't have brought on a numbers-crunchers CFO - that could be handled on a part-time basis or contracted out,” said Chapman, president and CEO of Chapman Healthcare Services. “Our CFO has healthcare experience. That makes it a strategic-partner position.”
In today's environment of increased competition and reduced reimbursement,...
Billing
August 31, 2004HME News Staff
Dealing with a probe review
With Peggy Walker
Q. What is a probe review?
A. A probe (prepay) review is when a specific HCPCS code or group of codes is going to be stopped and looked at by the Medical Review team before it pays.
What happens than?
The claim is “developed” which means a letter is sent to the provider requesting specific information. Of course, the letter would be specific to the item being reviewed but usually includes:
- A copy of the order for the item.
- A delivery...
Invacare’s China strategy departs from industry norm
August 31, 2004HME News Staff
ELYRIA, Ohio - Invacare announced in July that it was opening its second wholly owned facility on the Chinese mainland, this time in Kunshan. Like its Suzhou facility, the Kunshan plant sprawls over more than 40,000 square feet of manufacturing space in addition to offices and test labs.
The two facilities are unique in the HME industry. While most manufacturers operate joint-venture partnerships, contract out to original equipment manufacturers in China, Invacare has abandoned that approach.
“We...
Medicare unfazed by CMN defeat
August 31, 2004HME News Staff
WASHINGTON - Medicare officials all but said “no big deal” to a June court ruling that prohibits the DMERCs from requesting information beyond the CMN to prove medical necessity.
“The government has 60 days to appeal the ruling and is currently considering whether to do so,” a CMS official told HME News in early August. “Therefore, the decision is not yet final. Moreover, even if it becomes final, the decision will have limited (precedent-setting) effect, since it represents...
Paperwork burden beating providers to a pulp
August 31, 2004HME News Staff
HME providers have been slow to embrace the paperless initiative being championed by software companies, administrative specialists and financial advisors so far, but the movement may finally gain momentum with passage of the Medicare Prescription Drug Act's new reimbursement-slashing mandates.
While providers may hope that Medicare reform's intent to pattern Medicare Part B after the Federal Employee Health Benefit Plan system will eliminate certificates of medical necessity and other documentation,...
Medicare considers dispensing fee
August 31, 2004HME News Staff
WASHINGTON - Medicare in July issued a Notice of Proposed Rulemaking that revealed an 89% cut for albuterol and ipratropium. That's the bad news. The good news is that CMS also floated the idea that it might soften the cut by paying HMEs a fee for dispensing the drugs.
“This is the first time that I have actually seen that [CMS is] considering raising or adjusting the dispensing fee to try and make up some of the shortfall providers are expecting,” said Lisa Smith, an attorney with Brown...