Archive: August 2008
CMS OKs sham HMEs, charges GAO report
August 31, 2008HME News Staff
WASHINGTON--The Government Accountability Office (GAO) released a report in August that gives credence to the industry's long-standing argument that CMS is partly to blame for the fraud and abuse that plagues the HME industry.
Earlier this year, the GAO set up two sham HME companies as part of a continuing investigation into CMS's enrollment and inspection process. The GAO was able to get the companies approved for Medicare billing privileges, even though they didn't have clients or inventory.
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Industry tiptoes forward
August 31, 2008HME News Staff
WASHINGTON--With national competitive bidding delayed, the home medical equipment industry now seeks to work with CMS officials to re-shape the beleaguered program.
In addition to delaying competitive bidding for 18 to 24 months, the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) requires CMS to implement certain improvements, including notifying bidders about paperwork discrepancies and giving them time to make corrections. But those improvements only go so far, industry stakeholders...
In brief: VGM gives, Grassley chastises
August 31, 2008HME News Staff
WATERLOO, Iowa - The VGM Group has split the revenues from the 18 national competitive bidding seminars it held in 2008 with various co-sponsoring state associations, it announced last week. Each seminar generated, on average, $5,500 in revenues. Each state association received, on average, $2.700. In addition to offering education about competitive bidding to providers, "we wanted to help state associations create revenue to fund their legislative activities and garner new membership," stated John...
Change to mail order raises bar
August 31, 2008HME News Staff
WASHINGTON--Diabetes providers who participate in future rounds of national competitive bidding won't be able to craft bids based solely on low-cost strips and meters.
The bill passed on July 15 that delays the program also requires suppliers who bid on diabetic testing supplies to offer brands with at least 50% marketshare. That's earning some praise from providers.
“The way the bid was set up before, they were trying to shift everybody to a different class of products,” said Tom Cronin,...
Gentiva lightens load
August 31, 2008HME News Staff
MELVILLE, N.Y. - Gentiva Health Services will sign over a controlling interest in CareCentrix, a provider of home nursing, infusion and home medical equipment, to a healthcare-focused private equity firm, the company announced Aug. 21.
Per the transaction, valued at $147 million, Chicago-based Water Street Healthcare Partners will acquire a 69% controlling interest in CareCentrix. Gentiva will retain the remaining 31%, worth about $26 million.
The move allows Gentiva "to sharpen its focus on accelerating...
Accreditation
August 31, 2008HME News Staff
Q. What area of accreditation takes the most amount of time and should be started early?
A. The amount of time it takes to complete all segments of accreditation preparation will differ between providers. But one problem area is a provider's ability to track HME items and medical supplies with lot numbers or serial numbers.
The goal of this standard is for the provider to find equipment and supplies that they have furnished to their patients in the event of a manufacturer or Food and Drug Administration...
Rehab's a tough business to be in
August 31, 2008HME News Staff
When Apria Healthcare announced in June that it had sold its rehab business to Earth City, Mo.-based United Seating & Mobility, there was more to the story. After the sale, United Seating turned around and sold small parts of that business to three other providers: Rehab Tech in Illinois; Rehab Specialties in Texas; and Universal Rehab Equipment in Nevada. Still, United Seating picked up a good chunk of business—11 locations, including “market-leading” locations in Pittsburgh and...
AARC, providers clear up misunderstanding
August 31, 2008HME News Staff
IRVING, Texas--Provider-based respiratory therapists demanded respect from the American Association for Respiratory Care (AARC), and in July, they got it.
The trouble began in June, when AARC began fielding calls from home oxygen beneficiaries who said that they were being told they had to switch to different equipment as a result of Medicare reimbursement changes. The association issued a memo to its members, encouraging hospital-based RTs to ensure any such switches didn't compromise patient health.
That...
Business merger pays off
August 31, 2008HME News Staff
GREENSBURG, Pa.--When Conemaugh Home Medical Equipment approached MedCare Equipment Company, part of the Excela Health System, for business advice, the two companies realized maybe two heads really are better than one.
“We sat down to talk and realized it would make more sense to form a new company where we could both benefit from combined efforts,” said John Sphon, MedCare CEO. “We felt there was a lot of opportunity for us to grow and benefit the patients and region by working...
Walgreens grows, piece by piece
August 31, 2008HME News Staff
OAK GROVE, Ill.--Walgreens-OptionCare has partnered with Nampa, Idaho-based MedNow, a home infusion, respiratory and DME, the companies announced July 31. Walgreens bought Orange Belt Pharmacy the company announced in July. Also in July, Walgreens acquired Deland, Fla.-based Orange Belt Pharmacy. The 50-year-old pharmacy will retain its name and its staff of 32 employees, said general manager Doug Wedekind in the July 13 issue of the Daytona Beach News-Journal. The deal will give Orange Belt customers...