Our customers in the U.S., on a broad basis, applauded us for this and have assured us of their continued support. You could say that this speaks for itself. On that basis, we are confident to become even stronger in the U.S. with regard to our core rehab manual, rehab power and seating/positioning business.

Q: Can you talk about what the next level is for your company?
Rossnagel: The future will show what else we will have to do in order to grow further, both top-line and profit-wise. In the U.S., the market has followed all the changes our U.S. commercial team ... has implemented, and we are feeling the increasing trust of our customers in what we do on an almost daily basis.

In other parts of the world, we are very successfully competing in certain areas that we have decided to exit in the U.S. In fact, in Europe, we are very successfully competing in product lines we have never been able to compete in within the U.S., such as scooters.

We are thinking globally, but executing on a regional basis. Sunrise’s expectation cannot be anything less than to be within the top three competitors in all the segments we are competing in, worldwide. The regional strategies that lead to this goal can vary, and there is nothing wrong with this, in my opinion.

Q: How do you think the home medical equipment industry will evolve over the next year?
Rossnagel: The future of the HME industry is very difficult to predict. A lot of things speak to the fact that there needs to be consolidation, especially when considering the overcapacity in our industry.

However, this is something that has been discussed many times over since I joined the industry segment over 13 years ago and, in reality, it has not really happened yet on a true, broad scale. Hence, I assume that in the near- to mid-term, it will be about staying very innovative and competitive to cope with the challenges on hand and ahead, while always keeping an eye on the consolidation opportunities that may arise.

I am optimistic that the leaders of this industry, be they manufacturers, dealer customers, institutions, reimbursement/funding organizations or others, will find ways to cope with the dynamics of this environment. This is our responsibility to our patients and end-users as well as our associates and the shareholders/financial sponsors. This change likely will be painful.

We are missing the influence that other industry segments enjoy, which helps them maintain and, in some cases, even increase their relevant funding pools. Having said this, I do appreciate that no reimbursement system on this globe is able to spend money it doesn’t have available to them, but if you look at how many wheelchair-users are underprovided with regard to the product they get funding for, this is concerning to me.

The overall cost to the health care system on an ongoing basis to address the consequences far exceeds the “savings” that have been realized on the individual product. I am not criticizing the reimbursement systems for this, but do believe that our government leaders worldwide should rethink the funding approach and develop a transparent methodology that fosters more of an integrated approach while looking at the “total cost of ownership” more than the “purchase price.”

This will take time, but I am confident we will get there because we have to. Societies and governments, in my opinion, should take care of their people as one of their prime duties. Sustainability is an important piece of this. We need to especially treat the elderly population, who need medical aids, with the respect they deserve, recognizing their lifetime contribution. Each of us should be aware that something could happen to us any day that could change our lives and make us reliant on the meaningful provision of a medical device.

Medical Directors Stick with Repair Policy
ARLINGTON, Va.--The American Association for Homecare reported last week that the four DME MAC medical directors have declined to withdraw CMS’ new repair policy, which took effect April 1.

The billing policy limits Medicare coverage for the labor component of equipment repairs, allowing only a certain number of repair units of service (at 15 minutes each) for commonly repaired items.

“Medicare beneficiaries will be adversely affected because home medical equipment providers cannot afford to perform repairs in the limited time that the DME MACs have determined to be billable,” AAHomecare told the medical directors in a letter. “As a result, many HME providers will be unable to provide the needed items and service to Medicare beneficiaries.”

But in a response to AAHomecare’s request to withdraw the controversial policy, the medical directors disagreed with the association’s assessment. In a Wednesday update, AAHomecare said the medical directors “believe they have the authority to make determinations regarding payment amounts and units of service allowed for labor associated with repairs, maintenance and servicing of beneficiary-owned DME or oxygen equipment not covered under the supplier’s or manufacturer’s warranty.”

The medical directors also noted that reimbursement for repair time includes reimbursement for travel to the beneficiary’s home. “Travel costs are bundled into the reasonable fee established for labor and are not separately billable,” the medical directors’ response stated.

Get Ready for Bidding--Again
BALTIMORE--With registration for the Round One rebid to begin this summer and the bidding window set to open in the fall, CMS’ Competitive Bidding Implementation Contractor (Palmetto GBA) is cranking up again with a reminder that providers need to get prepared.

“If you are a supplier interested in bidding, prepare now--don't wait!” a CBIC notice cautioned Friday.

Here’s what the notice said providers need to do:

UPDATE YOUR NSC FILES: DMEPOS supplier standard #2 requires ALL suppliers to notify the National Supplier Clearinghouse (NSC) of any change to the information provided on the Medicare enrollment application (CMS-855S) within 30 days of the change. DMEPOS suppliers should use the 3/09 version of the CMS-855S and should review and update:

       The list of products and services found in section 2.D;
       The Authorized Official(s) information in sections 6A and 15; and
       The correspondence address in section 2A2 of the CMS-855S.

This is especially important for suppliers who will be involved in the Medicare DMEPOS Competitive Bidding Program. These suppliers must ensure the information listed on their supplier files is accurate to enable participation in this program. Information and instructions on how to submit a change of information may be found on the NSC Web site and by following this path: Supplier Enrollment/Change of Information/Change of Information Guide.

GET LICENSED: Suppliers submitting a bid for a product category in a competitive bidding area (CBA) must meet all DMEPOS state licensure requirements and other applicable state licensure requirements, if any, for that product category for every state in that CBA. Prior to submitting a bid for a CBA and product category, the supplier must have a copy of the applicable state licenses on file with the NSC. As part of the bid evaluation we will verify with the NSC that the supplier has on file a copy of all applicable required state license(s).

GET ACCREDITED: CMS would like to remind DMEPOS suppliers that time is running out to obtain accreditation by the September 30, 2009 deadline or risk having their Medicare Part B billing privileges revoked on October 1, 2009. Accreditation takes an average of 6 months to complete. DMEPOS suppliers should contact a CMS deemed accreditation organization to obtain information about the accreditation process and the application process. Suppliers must be accredited for a product category in order to submit a bid for that product category. CMS cannot contract with suppliers that are not accredited by a CMS-approved accreditation organization.

Further information on the DMEPOS accreditation requirements along with a list of the accreditation organizations and those professionals and other persons exempted from accreditation may be found at the CMS Web site.

GET BONDED: CMS would like to remind DMEPOS suppliers that certain suppliers will need to obtain and submit a surety bond by the October 2, 2009 deadline or risk having their Medicare Part B billing privileges revoked. Suppliers subject to the bonding requirement must be bonded in order to bid in the DMEPOS competitive bidding program.

A list of sureties from which a bond can be secured is found at the Department of the Treasury's "List of Certified (Surety Bond) Companies."

Visit the CMS Web site for the latest information on the DMEPOS competitive bidding program.

Medtrade Celebrates 30 Years
ALPHARETTA, Ga.--Medtrade, the largest event in the home medical equipment industry, will celebrate its 30th anniversary this year at the Georgia World Congress Center in Atlanta. Produced by Nielsen Business Media, Medtrade will take place Oct. 12–15.

Thirty years later, Medtrade continues to be the industry's go-to event.

“Undeniably, the HME industry has been through dramatic changes since the first event was held in 1980. Through the years, producers of the event have responded to those changes, and we continue to seek industry guidance to ensure providers and manufacturers receive the information they need to continue their success,” said Kevin M. Gaffney, show director.

“As we prepare to celebrate this important anniversary, my wish is for the industry to celebrate the enormous impact it has had on the lives of the millions of Americans who depend on home care to live independently.”

In November of 1980, Edward C. “Ted” Conrad, president and CEO of SEMCO, launched the National Home Healthcare Exposition–DME Industry Tradeshow. It was held at the GWCC and was host to 79 exhibitors and 400 attendees.

According to Conrad, in 1992 the name was changed to Medtrade to reflect the growing number of international attendees and exhibitors.

“I wanted an international-sounding name that didn’t mention home care as it wouldn’t translate properly in many countries, hence I decided on Medtrade,” he said.

While commemorating the past, organizers of Medtrade 2009 are looking to the future. The event will feature several pre-show conferences, a comprehensive educational conference and over 600 exhibitors.

CMS Creates Health IT Web Site

President Launches ‘Year of Community Living’

Newsmakers
New Officers at NEMED; MED Group Promotes Grau
NEW BEDFORD, Mass.--The New England Medical Equipment Dealers Association welcomed several new officers to its board last week at its annual meeting in Hyannis, Mass. Tamme Dustin of Herron & Smith, Hooksett, N.H., takes over as president of the six-state association, succeeding Michael McDonald of Clinical 1 Home Medical in Weymouth, Mass. Jack Hogan of Health Complex Medical, Waterbury, Conn., is NEMED's new vice president; Chris Henry of The Medical Store, Burlington, Vt., is treasurer; and Steven DeYoung of Home Medical Equipment Services, Manchester N.H., is secretary.

MED Group Promotes Grau
LUBBOCK, Texas--Wayne Grau has been promoted to vice president, supplier relations, for The MED Group, where he will lead the member services organization's group purchasing efforts. Grau has been with MED since November 2008 as sales team leader and had previously worked in the industry as a sales representative, regional manager and in government relations. Prior to that, Grau was an HME provider.

In Brief
Open Door Forum Tomorrow; PAP, RAD LCDs Revised
CMS' has scheduled a Home Health, Hospice & DME Open Door Forum tomorrow (Tuesday, June 30) from 2 to 3 p.m. ET. To participate by phone, call 800/837-1935 and reference Conference ID 16841080 (no RSVP required).

PAP, RAD LCDs Revised
DME MACs A and B notified providers last week that the Positive Airway Pressure and Respiratory Assist Devices local coverage determinations have been revised, effective for dates of service on or after Sept. 1, 2009. The revised information is in the Documentation Section and outlines the use of additional modifiers to indicate that an item is not medically necessary and whether or not a waiver of liability statement (i.e., Advance Beneficiary Notice) is on file. Read the entire notice on the Jurisdiction A Web site in the "What's New" section.

New RAC Review Schedule
CMS has issued a new review phase-in strategy for its Recovery Audit Contractor program. Check the RAC Web site for an overview of the program and a map of RAC jurisdictions.

One Million H1N1 Flu Cases in U.S.
U.S. health officials said last week that as many as 1 million Americans have been infected with the H1N1 flu virus. At a press briefing Friday, the Centers for Disease Control's Dr. Anne Schuchat said the CDC had received reports of over 6,000 new U.S. cases in the past week, more than in any other week since the outbreak began in April. "The key point is that this new infectious disease is not going away," Schuchat told reporters. More than 27,000 confirmed U.S. cases have been reported to the CDC, including 3,000 hospitalizations and 127 deaths. "Those reported cases are really just the tip of the iceberg," Schuchat said, noting that models of viral spread indicate many times that number have been infected. Several drugmakers are now working on a vaccine to protect against the new virus.

Coming Up
On the HME Calendar
The VGM Group has revised the schedule for its competitive bidding seminar dates to align with CMS’ new timeline for the rebid of Round One. Beginning in July and running through early September, the one-day sessions will be held in all nine bid areas. First up is Dallas on July 2. For all dates, cities and information on “Competitive Bidding Round 1.2: The Rules Have Changed,” see www.vgmncbservices.com.

The Big Sky Association of Medical Equipment Services (Big Sky AMES) will hold its quarterly meeting in Butte, Mont., July 10. Call 406/777-7301 or visit www.bigskyames.org.

The Nevada Association of Medical Products Suppliers (NAMPS) will hold an educational meeting July 15 in Reno, Nev. Call 702/294-6680.

The American Association for Respiratory Care (AARC) will hold its Summer Forum July 17-19 on Marco Island, Fla. Call 972/243-2272 or visit www.aarc.org.

The North Carolina Association for Medical Equipment Services (NCAMES) has scheduled its summer meeting and exhibit in Wrightsville Beach, N.C., July 27-29. Call 919/387-1221 or visit www.ncames.org.