Archive: April 2008
'No one's happy'
April 30, 2008HME News Staff
Providers of standard and complex power wheelchairs weren't the hardest hit by national competitive bidding (providers of mail-order diabetic supplies won that honor), but, they argue, they had the most to lose.
Two years ago, CMS cut reimbursement for power wheelchairs by 27% on average. As part of Round 1 of competitive bidding, which kicks off July 1, the agency will cut reimbursement on average by 21% for standard power wheelchairs and 15% for complex power wheelchairs in 10 competitive bidding...
Cardinal Health signs exclusive sleep deal
April 30, 2008HME News Staff
DUBLIN, Ohio - Cardinal Health has signed an exclusive agreement with SleepNet to be the sole distributor of its complete range of products throughout North and South America. SleepNet manufactures gel masks for sleep apnea patients. Under the terms of the three-year agreement, Cardinal will distribute SleepNet's IQ, Phantom and MiniMe Nasal Masks and the Mojo Full Face Mask in the Americas.
'Doing our part'
April 30, 2008HME News Staff
NEW BRAUNFELS, Texas -The Scooter Store hosted U.S. Reps. John Carter, R-Texas, and Ted Poe, R-Texas, at its corporate headquarters in February and March. The congressmen spent time visiting with employees and viewing different products. They also talked about issues concerning the home medical equipment industry, including the recent spate of negative coverage in the national media. "The industry's trying to gain legitimacy, but it's hard when there are negative stories running on NBC and other...
Jury finds providers guilty of COPD fraud
April 30, 2008HME News Staff
MIAMI - A federal jury on March 7 convicted the owners of two durable medical equipment companies, a home healthcare agency and a physician of Medicare fraud. After a five-week trial, the jury found Maria Hernandez, Marta Jimenez, Maivi Rodriguez and Dr. Ana Caos guilty on all charged accounts, including conspiring to defraud the U.S. government, submitting false claims to Medicare, soliciting and receiving kickbacks, and conspiring to commit healthcare fraud. Their alleged scheme: falsely diagnosing...
SeQual reins in resellers
April 30, 2008HME News Staff
SAN DIEGO - SeQual has implemented a new reseller policy that requires the company's customers to adhere to a set of terms and conditions that govern the sale of SeQual products on the Internet, at home and abroad. The new policy also dictates levels of support that ensure timely service and maintenance of SeQual products used by patients.
The policy move comes amid concerns that Internet resellers and other price-driven dealers may abandon the necessary service component that attends the sale and...
Providers escape licensing rule
April 30, 2008HME News Staff
PHOENIX, Ariz. - A state legislator has dropped plans to require licenses for HME providers-for now.
"It won't go any further this year, but it's not going to go away," said Steve Treinen, director of Banner Home Care in Gilbert, Ariz. "They just have too much on their plates this year."
In HB 2504, Rep. Jennifer Burns, R-District 25, outlined plans to require that all HME providers get licenses by Jan. 1, 2009. She envisioned a system where the state would renew licenses each year, as long as providers...
Travel 02 service takes flight
April 30, 2008HME News Staff
CONCORD, Calif. - As people prepare for summer vacations, Mike Kuller hopes his travel oxygen service really takes flight this year.
All Star Oxygen Services began renting portable oxygen concentrators (POCs) last summer. This year, the company is ramping up efforts to promote the service, including advertising in newspapers and revamping its Web site.
"Cash business these days is not really that easy to find and this seems like a good opportunity," said Kuller, company president. "Two summers ago...
CMS to disgruntled bidders: 'We have process'
April 30, 2008HME News Staff
WASHINGTON - CMS officials assured the 436 listeners to the Open Door Forum on April 2 that they have "a process in place" for addressing concerns that some bidders were unfairly disqualified from Round 1 of national competitive bidding.
When asked, during the forum's question-and-answer period, to explain that process, CMS's Joel Kaiser said that disgruntled bidders can call 877-577-5331 and speak with a customer service representative at the Competitive Bidding Implementation Contractor (CBIC)...
Healthnostics invests in diabetes supplies market
April 30, 2008HME News Staff
NEW YORK - Healthnostics, a medical and biotech analytics information and technology company, has acquired a significant interest in GMD, a nationwide durable medical equipment provider that specializes in direct-to-consumer diabetes supplies, the companies announced April 1. GMD is currently forecasted to generate $10 million in revenue by the end of the fiscal year in June 2008. Alan Grofe, president of Healthnostics, will serve as CEO of GMD. The companies stated in a release: "This transaction...
Buyers scramble into action
April 30, 2008HME News Staff
YARMOUTH, Maine - With early signs of spring came a slow thaw in the M&A market for HME businesses, as bidders in the first round of competitive bidding learned whether they had won or lost bids.
"It's a zoo here," said Jonathan Sadock, CEO of Paragon Ventures in Philadelphia. "People that have been sitting on the sidelines can start to move forward."
Without a fee schedule, determining the value of a company has been difficult, say analysts.
Transactions for 2007 were down: 43 deals completed compared...