SuperCare Health makes it work

DOWNEY, Calif. - SuperCare Health picked up more than 20,000 patients and $25 million in additional revenues when it acquired the respiratory assets of LifeCare Solutions, which decided to exit the California market this summer.

Now SuperCare Health is working quickly to integrate those assets.

“We are working aggressively to transition all the patients in the next 30 to 60 days,” says CEO John Cassar.

In July, the Phoenix-based LifeCare, which had 13 locations in California, announced it would exit the state, blaming reimbursement cuts related to the competitive bidding program. LifeCare's not alone. Since July 1, 2013, California has seen a 60% reduction in the number of providers who accept Medicare, according to AAHomecare.

So how's SuperCare Health making it work? The provider, which has 19 locations throughout California and Nevada, has built a high-touch model focused on a broad range of respiratory services, including ventilation, CPAP/BiPAP, nebulizer and inhalation medication, and oxygen, Cassar says.

“I think being focused on your core strengths and hyper-focused on technology solutions is absolutely critical,” he said. “You have to be very disciplined in how you manage your business. We've walked away from basic DME at bid rates because it's not sustainable.”

SuperCare Health has also walked away from commercial payers that have dropped reimbursement to unsustainable levels, though Cassar thinks many of the premier payers are finally starting to recognize the need to increase rates.

With Round 2019 looming, Cassar is also hopeful that providers will bid more responsibly and reverse the race to the bottom.

“I do believe the margins will increase and people will be more disciplined to not bid such low rates,” he said. “Most providers recognize that this is not a gold rush.”