Archive: December 2007
Will HME escape cuts?
December 31, 2007HME News Staff
WASHINGTON - The Senate planned to break for the weekend Dec. 14 without passing any Medicare legislation, sparing the HME industry from further reimbursement cuts for a few more days and possibly much longer, said industry sources.
As the year drew to a close, the Senate was working furiously to pass a Medicare bill that eliminates a 10% reimbursement cut for doctors beginning Jan. 1. To help offset that, the Senate Finance Committee discussed cutting Medicare reimbursement for oxygen concentrators...
National advertising reaps higher sales
December 31, 2007HME News Staff
STUART, Fla. - An advertising campaign, launched in August, paid off for Liberator Medical, which saw its sales jump 22% in September. The supplier of diabetes, incontinence, ostomy and women's health products increased its staff by 50% and plans to add 6,000 square feet to its shipping facilities to meet demand. The response was better than expected, said CEO Mark Libratore. “Our October sales look like they are increasing right in line with our September sales,” he stated.
CHAD dumps conservers
December 31, 2007HME News Staff
CHATSWORTH, Calif. - CHAD Therapeutics, the trailblazing pioneer of oxygen conservation technology, sold its conserver business to Naples, Fla.-based Inovo for $5.25 million in November, giving up the goose that never laid the hoped-for golden eggs.
Twenty years after giving birth to the conserver market, CHAD has essentially cleared the decks for entrée into the multi-billion dollar sleep market. The company hopes to begin marketing its first sleep device in early 2008.
CHAD's decision to exit...
Rehab industry responds to ‘curve ball’
December 31, 2007HME News Staff
WASHINGTON -Â The rehab industry responded fast and furious to an Office of Inspector General (OIG) report claiming Medicare would save big bucks if it used Internet prices to set reimbursement for power mobility devices (PMDs).
The industry didn't think the Oct. 31 report had legs, but a Nov. 9 “dear colleague” letter from Rep. Pete Stark, D-Calif., changed all that, sources say. In his letter, Stark, who chairs the Health Subcommittee of the Ways and Means Committee, emphasized...
Rehab reaps regulatory reprieve
December 31, 2007HME News Staff
WASHINGTON -Â The Program Safeguard Contractors (PSCs) in December eliminated their requirement that independent assistive technology practitioners (ATPs) must conduct evaluations for certain power wheelchairs beginning April 1. That decision lifts a huge weight off the shoulders of providers.
The PSCs still plan to require that providers have assistive technology suppliers (ATSs) on staff to deliver the wheelchairs.
“They probably looked at the feedback from the industry and other stakeholders...
Manufacturers begin to raise product prices
December 31, 2007HME News Staff
Two prominent HME manufacturers have served notice that they'll raise prices on standard products this month to help offset an increased cost of doing business in China. Other manufacturers may follow suit shortly, if they haven't already, say industry watchers.
Come Jan. 1, Graham-Field will increase prices on many standard products by 4% on average, said Ken Spett, vice president of global marketing. Invacare plans to increase prices on some standard products beginning Jan. 15 by 1% to 4%, said...
Region C untangles claims snag
December 31, 2007HME News Staff
NASHVILLE, Tenn. - Starting in December, Cigna expected to be caught up on a backlog of claims that has bedeviled the Jurisdiction C Medicare Administrative Contractor (MAC) since it took over from Palmetto July 1.
“That's what they're saying,” said Joan Cross, a member of the Region C Advisory Council. “In their defense, they did get slammed with a bunch of things from Palmetto.”
Cigna has been hiring and training employees, as well as providing refresher training, she said....
Tennessee provider throws hat into ring
December 31, 2007HME News Staff
FRANKLIN, Tenn. — For provider Monty Lankford there are two colors: black and white.
“I believe we've lost our moral direction as a country when it comes to the aging population,” said Lankford, owner of TLC Medical Oxygen and Hospital Equipment. “I feel like we are neglecting our responsibility to these people—the greatest generation. We treat them as second class. We keep cutting their benefits and doing things that adversely affect them. Someone's got to start taking...
Apria nixes $265 million debt offering
December 31, 2007HME News Staff
LAKE FOREST, Calif. -Â Apria last week withdrew the sale of $265 million of senior subordinated notes due to “adverse” market conditions. The provider planned to use proceeds from the offering to bankroll its acquisition of Coram. Apria will now draw on its $500 million line of credit to close the $350 million acquisition.
Employee turnover has hidden expenses
December 31, 2007HME News Staff
Q. How do you determine the true cost of employee turnover, and what can be done to minimize it?
A. Costs associated with recruiting include hard costs such as advertisements ($200 to $1,500 for newspaper or online ads), screening tools ($25 to $300 for background, drug tests), and travel costs required to facilitate the recruiting process. Costs not typically calculated include: management time spent reviewing job requirements and descriptions (5 to 20 hours per position); interview time (hourly...