Archive: June 2006
David White, M.D., assumes clinical controls at Respironics
June 30, 2006HME News Staff
At age 56, David White says he has at least "10 years of kick" left in him and he wants to spend that time redefining the sleep industry. The best way to do that, says Respironics' new chief medical officer, is through product development and shaking up convention.
"I've done extensive research on the physiology of sleep--what causes disorders and their consequences--but it has translated into very little change in how we treat them," said White, who most recently served as director of the clinical...
HMEs torn over charging seniors more for Medicare
June 30, 2006HME News Staff
YARMOUTH, Maine - A small majority of providers believe that, as a way to stem Medicare reimbursement cuts for durable medical equipment, beneficiaries should pay more. Few HMEs, however, like the thought of that.
According to the June HME NewsPoll, 54% of 240 respondents agreed that requiring seniors to pay more would reduce DME reimbursement cuts. But with most seniors on fixed incomes, boosting their co-pays or requiring them to buy additional secondary insurance appear unlikely solutions, providers...
Mail order giant revenues down
June 30, 2006HME News Staff
WAKEFIELD, Mass. - PolyMedica and its subsidiary Liberty Medical attribute a 41% drop in earnings on their expanded pharmacy program, including the addition of 300 new employees at Liberty's Port St. Lucie, Fla.-based mail order operation. PolyMedica reported a drop in fourth-quarter earnings for the fiscal period ended March 31. Earnings were $6.9 million, compared to $11.7 million during the same time period in 2005. Training existing employees on the new Medicare Part D drug benefit also contributed...
Co-pays can be a tough nut to collect
June 30, 2006HME News Staff
WATERLOO, Iowa - As tighter Medicare constraints amplify an HME provider's every lost revenue dollar, VGM and Associates has taken a step toward helping members recover those lost dollars.
Under a new contract with Homecare Collection Service, VGM members now have discounted access to the Akron, Ohio-based agency's specialized patient collection services. Unpaid patient debts represent an estimated 7% to 10% of a provider's accounts receivable, said David Bargmann, HCS general manager.
"This is an...
They're no one-trick pony: Respironics expands O2 biz
June 30, 2006HME News Staff
MURRYSVILLE, Pa. - With its acquisition of OxyTec's portable oxygen concentrator, Respironics has signaled plans to resuscitate an oxygen business that's long served as a stepchild to the company's booming sleep business.
"Large investments are being made in both R&D and acquisitions," said John McClellan, Respironics' senior product manager for oxygen. "Within the next 12 months, we're anticipating the introduction of several major products."
The vanguard of this new thrust by Respironics is the...
Surveying the HMO landscape
June 30, 2006HME News Staff
Q. With Medicare cuts coming fast and furious, my boss wants to diversify our payer mix and has asked me to seek out HMO contracts. Where do I start?
A. Start by studying the health plans in your market. BlueCross BlueShield and other HMO and PPO plans probably do business in your area, but some will be national companies that don't have a local office. Unless they account for a substantial enrollment in your market, focus on locally based payer sources first. Three key things to learn about each...
'If we don't have to deliver it, we find a way to like it'
June 30, 2006HME News Staff
YARMOUTH, Maine - While the April HME News Poll showed that nearly 67% of providers say "no thanks" to high-tech oxygen devices because of high-acquisition costs, others are forging ahead with new business models.
"If we don't have to deliver it, we find a way to like it," said Scott Lloyd, president of Norcross, Ga.-based upstart Extrakare.
Lloyd and his partner wrote their business plan with an eye to the economics of the non-delivery oxygen model. Financing Invacare's HomeFill transfilling concentrator...
Coding: What's next?
June 30, 2006HME News Staff
Implementation of the new codes for power mobility devices will proceed as follows:
- Later this summer--The DMERCs and CMS are scheduled to follow up with an LCD and a fee schedule. The DMERCs must give 30 days advance notice before implementing an LCD, but the industry's not sure whether they will provide a comment period, said Cara Bachenheimer, vice president of government relations for Invacare. "They may consider last year's draft LCD as the draft that they got comments on," she said. "We don't...
Lincare ponies up $10 million to settle OIG kickback charges
June 30, 2006HME News Staff
CLEARWATER, Fla. - Lincare surprised few industry attorneys in mid-May when the company opted to pay $10 million to settle charges that it allegedly gave kickbacks like sports tickets and fishing trips to physicians in exchange for referrals.
Why? The alternative would have been the uncertainty of going to court and risking astronomical monetary judgments, suspended reimbursement and even mandatory exclusion from the Medicare program, industry attorneys said.
"No matter how good the target company's...
Providential Holdings buys Western Med
June 30, 2006HME News Staff
HUNTINGTON BEACH, Calif. - Providential Holdings has agreed to pay $5.25 million in cash to acquire assets of Phoenix-based Western Medical, including Western's entire inventory and accounts and other receivables, valued at $15 million. Providential specializes in M&A advisory services and seeks undervalued companies in high-growth industries.