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| May 4, 2009 | Volume 15, Number 19 |
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ADVERTISEMENT Rethink one size fits all – DME businesses have unique needs and require personalized solutions. MedAct has helped DME businesses for over 20 years increase revenue, expand product offerings and save money. Whatever your goals, MedAct can deliver - accreditation, managing margins or streamlining payments that are customized to your unique needs. Find out how you can get free patient eligibility checking. Go to www.dynamicenergy.com or call 800-326-0314. Table of Contents - First Surety Bond Deadline Today; Carriers Report Brisk Business - Keep Those Hands Washed, Health Officials Say - Consumers Take Masks into Their Own Hands - Flu Outbreak Underscores Home Care's Role - HME Advocates Call on Sebelius to Follow Through on Bid Review - New PAOC Members Hopeful as First Meeting Approaches - RAC 'Em Up: CMS Continues New Audit Program Outreach - Health Complex Medical Turns 25; DM Marks 30 Years For more industry news, features and highlights from our latest issue, please visit our Web site at www.homecaremag.com. Headline News First Surety Bond Deadline Today; Carriers Report Brisk Business BALTIMORE--As of today, HME companies applying for a new National Provider Identifier must have a $50,000 surety bond in order to be approved as a Medicare provider. In a final rule published Jan. 2, CMS mandated that existing DMEPOS providers obtain a surety bond by Oct. 2, 2009. New providers, those adding locations and those changing ownership were required to obtain the bond by May 4. (In a recent clarification, CMS said providers with 25 locations or more need not meet the May 4 deadline, but must submit one surety bond per practice location by Oct. 2 with pending applications for new locations.) In establishing the bond requirement, CMS said the agency hoped to stem fraud and abuse and curtail Medicare costs. Its final rule also said CMS expects more than 25,000 HME providers to abandon the Medicare program because of the combined costs of the surety bond and accreditation, which is required by Sept. 30, 2009. Still, the agency said, it did not anticipate any access issues for beneficiaries. In spite of the predicted provider fallout, representatives of organizations offering DMEPOS surety bonds reported brisk business leading up to the May 4 deadline. Warren Freeman, director of sales and marketing for VGM Insurance in Waterloo, Iowa, reported the company has issued bonds to about 28 percent of those that CMS expected would seek an NPI by May 4. “We feel good about those numbers,” he said. “The bulk of [the companies seeking surety bonds by May 4] had existing locations and they were adding a location. They needed a new number and were going through the process. Behind them, there were new providers and then third were the ones changing ownership.” Freeman was encouraged by the number of new providers breaking into an industry that is grappling with competitive bidding, mandatory accreditation, a 36-month oxygen rental cap and a 9.5 percent reimbursement cut. Many of the new providers, Freeman said, “realize that in a particular city there is a niche they can fill, and that’s where they are going. It’s neat to see a pharmacy that has had a location for 22 years and they are just now opening another location--at this time.” One glitch: The National Supplier Clearinghouse, which issues the NPI, did not notify potential candidates they would need a surety bond, Freeman said. So those who had downloaded an application some months ago did not realize that the application had been changed and a surety bond was now required.
“I think we are going to see some people have their applications
rejected because they didn’t submit a surety bond,” Freeman said.
“The application process does not take long,” she said,
noting that it can require as little as 15 days. But depending on the
financial information the bond issuer might require, it could take
longer. “You don’t want to wait until two weeks before the Oct. 2
deadline,” she cautioned.
For a list of approved surety bond carriers, see the Department of Treasury Web site. Do you support the New Oxygen Coalition reform plan for Medicare's oxygen benefit? To vote in HomeCare's monthly Web poll, visit www.homecaremag.com. Keep Those Hands Washed, Health Officials Say ATLANTA--The H1N1 flu continues to spread across the United States. As of yesterday, the Centers for Disease Control and Prevention had confirmed 226 cases in 30 states and one death, a 23-month-old Mexican toddler visiting Texas with family. While only 30 of the cases have required hospitalization, health officials said it is too soon to be certain exactly how serious the new virus, which contains strains of human, avian and swine flu, will be. The only wise course, President Obama said Friday, was to prepare for the worst. "It may turn out that H1N1 runs its course like ordinary flus, in
which case we will have prepared and we won't need all these
preparations," Obama said of the government's swift response. But he
added that even if the current outbreak turns out to be mild, the bug
could return in a more virulent form during the next flu season.
Consumers Take Masks into Their Own Hands ATLANTA--As the federal government rolled out a massive effort to contain the H1N1 flu last week, consumers across the country went on a buying spree for masks and hand gel in an attempt to protect themselves from the virus. John Woolard of Concord, Calif.-based Home Med-Equip said the company’s retail store in Modesto sold 245 masks in three days. “People were calling and asking for them, so we got them in,” Woolard said. But when his supply ran out, he couldn’t get more. “We tried to reorder, and every single supplier we use was out of them,” he said, adding that he had also seen an increase in glove sales. California had 16 confirmed flu cases on Friday. “The closest confirmed case is in Sacramento, which is 60 to 70 miles away from us,” Woolard said. “The majority of our customers just seem to be being cautious. Some people are even buying a box (35 masks) and shipping them out of the country.” But even some areas with no flu cases saw a rush on masks. Lorrie Guthrie, manager at Kelly’s Medical Equipment and Supply in Davenport, Iowa, said her store did have a supply--in one box that had been sitting untouched in the same spot for a year. “That box went quickly,” she said. “We had to bring in masks from another location. We have had the bare minimum in stock and now we are ordering stock. This has not happened to us before. “We’ve had a lot of health facilities order that are trying to protect their own people,” Guthrie continued. “We even have a large order from the Rock Island Arsenal. All these people are coming in, low-key, just wanting masks.” Information on the Centers for Disease Control and Prevention Web site said no mask or respirator can completely protect against contracting influenza. But health officials have said if used correctly, a mask rated N95 or above that fits snugly on the face can filter out small airborne particles. As the flu spread last week, traditional retailers also were running out of masks. Drugstore giants CVS and Walgreen sold out on their Web sites, along with some brands of hand gel. The N95 mask, often used in construction, was also out of stock online at Home Depot. According to a Bloomberg.com report, manufacturer Cantel Medical Corp.’s Crosstex unit, Littlefield, N.J., received requests for 1 million N95 masks last week, about twice what it had on hand. “There just isn’t enough capacity in the industry to supply everyone in the country with an N95,” a company spokesman told the news service. Flu Outbreak Underscores Home Care's Role ARLINGTON, Va.--Last week the American Association for Homecare noted the current flu outbreak is a reminder of the key role that home care providers will likely play in responding to an influenza pandemic. Two years ago, the association participated in the development of a report prepared by the Agency for Healthcare Research and Quality, which points out an expected shortage of health care professionals during a pandemic could leave family and friends to care for flu-stricken patients. The AHRQ report, “Home
Health Care during an Influenza Pandemic: Issues and Resources,”
summarizes what home health care workers can expect during a pandemic,
noting they will be called on to provide care for two main patient
populations:
Of the nation's confirmed H1N1 cases, relatively few have required hospitalization. By contrast, the newspaper reported, HHS' "moderate pandemic influenza model, based on the last flu pandemic in 1968, envisions 90 million Americans becoming infected and 865,000 requiring hospitalization." “The nation’s infrastructure of home medical equipment providers represents a critical piece of any front-line response to pandemic flu,” said Tyler Wilson, AAHomecare president. On Thursday, the association sent a survey to its members "to get an accurate picture of what is occurring in the home medical community nationwide with respect to preparations for emergencies." According to a message from the VGM Group, Waterloo, Iowa, this is a good time for HME providers to remind members of Congress of the important part HME providers play in taking care of home-based patients. “It is important for congressional members to understand this,” the message said. “Inform them that programs such as competitive bidding would not be beneficial in times of a pandemic.” HME Advocates Call on Sebelius to Follow Through on Bid Review WASHINGTON--With the government’s response to the H1N1 flu outbreak in full swing, newly sworn in Health and Human Services Secretary Kathleen Sebelius can begin to focus attention on other matters. And not a moment too soon, HME observers say, as CMS is waiting in the wings on a restart of competitive bidding. The former Kansas governor, confirmed in a 65-31 vote by the Senate on Tuesday, is charged with shepherding the Obama administration’s ambitious effort for a complete health care system reform, which the president has said he wants completed this year. She will also play a pivotal role in determining the future of Medicare's DMEPOS competitive bidding program. One of her first tasks, insiders say, will be to choose a new administrator for CMS, which has been rudderless since Kerry Weems left the agency’s top spot in January. With no permanent leadership, CMS has plunged forward with its interim final rule on competitive bidding. Issued Jan. 16--literally in the waning hours of the Bush presidency--the IFR, which calls for a rebid of Round One this year, took effect April 18. Sebelius had indicated in Senate confirmation hearings that she would review the bidding program before a restart. “Now that there is [an HHS secretary] to weigh in with, the industry continues to ask members of Congress to request that Secretary Sebelius do a full review and be fully briefed on the problems with the IFR before she makes a determination on how and when to move forward,” said Seth Johnson, vice president of government affairs for Pride Mobility Products Corp., Exeter, Pa. “We have also heard from others in Washington that CMS has indicated they were not planning to restart the bid process until after the [Program Advisory and Oversight Committee] has an opportunity to meet,” he added, “so there are a couple of things in play that should take place prior to any restart of the program.” A meeting of the 17-member PAOC has been scheduled for June 4 (see related story this issue). Johnson said he expects a timeline for the Round One rebid could be presented at the meeting, along with any changes CMS may make within the current framework for the bidding program. The industry is also hoping to take advantage of a surprise move last week by Pennsylvania Sen. Arlen Specter, who after 30 years as a Republican, changed party affiliation to the Democratic side of the aisle. That could help Democrats, now within one seat of a 60-vote, filibuster-proof majority, in moving any legislation. The switch could also lend more weight to the industry’s push to halt the IFR with Sebelius. In March, Specter wrote then-Acting HHS Secretary Charles Johnson calling for rescission of the bidding rule. Specter will give the keynote speech at the American Association for Homecare's Washington Legislative Conference June 3, just one day before the PAOC meeting convenes. New PAOC Members Hopeful as First Meeting Approaches ATLANTA--Members of the second Program Advisory and Oversight Committee said Friday they are hopeful they can have a positive impact on DMEPOS competitive bidding as the rebid process moves forward. CMS will convene the first meeting of the new committee June 4 in Baltimore. The agency abruptly ended the term of the original PAOC members and called for new nominees in 2008, three months after Congress halted Round One of bidding (see “Call for New PAOC Puzzles Current Members,” Oct. 13, 2008). In January, CMS chose a new committee. The group was initially established to provide CMS with advice on the implementation of competitive bidding. But previous PAOC members have been vocal in their criticism of CMS, saying that although the committee’s name indicates they had oversight powers, they did not, and while they were to function as well in an advisory capacity, CMS seldom took their advice.
New PAOC members, who will be sworn in before the June meeting begins,
are cautiously optimistic their voices will be heard this time around.
RAC 'Em Up: CMS Continues New Audit Program Outreach SAN FRANCISCO--With its Recovery Audit Contractors going live in some states in March, CMS continues area outreach on the new audit program this week with three sessions at its San Francisco regional office. In-person sessions are also set for Texas this month. The agency has planned a gradual rollout of the new audit program to
all 50 states by 2010. When fully implemented, the RACs--in territories
matching the DME MAC jurisdictions--will each be responsible for
identifying overpayments and underpayments from previous claims in
approximately a quarter of the country.
HME Company Newswire Health Complex Medical Turns 25; DM Marks 30 Years WATERBURY, Conn.--Health Complex Medical celebrates 25 years in business this month, founded by Jack Hogan and Ed Sklanka in May 1984. Specializing in oxygen and sleep therapy, the company now employs 60 people and has two branches serving Connecticut in addition to the main location in Waterbury. Hogan, who notes the respiratory care company "continues to have healthy growth amidst reimbursement challenges and the slowing economy," credits his staff for their dedication to the business and the industry. DM Marks 30 Years EVANSTON, Ill.--DM Systems is celebrating its 30-year anniversary. The company was founded in 1979 by orthopedic surgeon Denis Drennan, who, when he couldn't find a product to prevent pressure ulcers, designed a foam boot to suspend the heel. DM's Heelift Suspension Boot continues to be used. "Pressure ulcers are relevant today as they were 30 years ago, and I expect to see much more growth in the future, especially with the new CMS guidelines that don't cover pressure ulcers anymore," Drennan said. Team Invacare's Van Dyk Wins Boston Marathon ELYRIA, Ohio--Invacare Corp.'s Team Invacare placed first in the men’s wheelchair division and second in the women’s wheelchair division in the 113th Boston Marathon last week. Team member Ernst Van Dyk crossed the finish line in 1:33.29 for his eighth first place win in nine years. In the women’s wheelchair division, Diane Roy finished in second place with a time of 2:01.27. Both athletes competed in Invacare’s Top End OSR racing chairs. To revisit this news any time during the week, go to www.homecaremonday.com. ADVERTISEMENT |
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