Tag: Round 2 competitive bidding

BALTIMORE - CMS did not always follow its own procedures and federal requirements for awarding competitive bidding contracts consistently, according to a new report from the Office of Inspector General.CMS did not follow the bid process consistently for 23 of 215 winning suppliers, the OIG found.Breaking it down, the agency awarded contracts to 10 suppliers that did not meet financial statement requirements and 13 suppliers that did not have the required license in at least one competition, according...

WASHINGTON - Medicare payments under the competitive bidding program are below providers' costs and therefore unsustainable, says a new study.Medicare reimbursement rates cover, on average, only 88% of overall costs for companies providing HME services, according to the study, “Analysis of the Cost of Providing Durable Medical Equipment to the Medicare Population: Measuring the Impact of Competitive Bidding,” conducted by Dobson DaVanzo & Associates.The study examined the cost of goods,...

WASHINGTON - The number of Medicare beneficiaries receiving DMEPOS in Round 2 areas decreased more than twice as much from 2012 to 2014 than in non-bid areas, according to a new report from the Government Accountability Office. The number of beneficiaries receiving DMEPOS in Round 2 areas decreased 17% from 2012, the year before bid pricing went into effect, to 2014, the year after. The number of beneficiaries in non-bid areas decreased 6% during the same time period. “CMS officials stated...

Since founding Medi-Healthcare in 1985, CEO Robert Slama has seen providers come and go, but recently, he says there's a lot more going than coming.“We've seen about 13 companies close down in our surrounding area over the last 24 months or so,” said Slama, who has a location in Lakeland, Fla.That includes the recent closing of a competitor that logged more than 20 years in business, he said.Still, Slama, who accepted Round 2 contracts for enteral, oxygen and negative pressure wound therapy...

Editor's note: This is the first of two stories examining the impact of competitive bidding in Round 2 areas. Next week: “Closings abound.”YARMOUTH, Maine - With the bid window for the Round 2 re-compete drawing to a close later this month, those who accepted contracts in Round 2 are reflecting on whether or not it has been worth it.It hasn't been easy ever since reimbursement rates were reduced, on average, 45%, on July 1, 2013, they say.“We've had to figure out a way to save on...

YARMOUTH, Maine - In the year since Round 2 of competitive bidding was implemented in 91 cities, the HME industry has seen a rapidly shrinking provider base.In a story that's being retold across the country, provider Rich King says he will wind down operations at ProMed DME on July 31st.“It's sad,” said King, CEO of the 30-year-old, family-owned company in Los Alamitos, Calif., a Round 2 competitive bidding area (CBA). “We had a good business for a lot of years and employed a lot...

When it comes to managing a Round 2 contract, the low single payment amounts aren't the only obstacle to providing timely service. Onerous documentation requirements and shortsighted Medicare rules may present even bigger hurdles.Provider Britt Peterson holds contracts for hospital beds throughout Texas but says that, due to prepay reviews and the new written order prior to delivery requirement, it's a slow-moving process.“We have hundreds of beds across Texas we can't deliver,” said...

YARMOUTH, Maine - More than half a year in, Round 2 of the competitive bidding program has had an uneven impact on providers in affected areas.Provider Steve Ackerman, whose Silver Springs, Md.-based Spectrum Medical is a contract supplier, says the biggest problem in his competitive bidding area (CBA) is that too many contracts went to out-of-state suppliers.“We are the only brick-and-mortar provider inside the D.C. beltway that has a walker contract,” said Ackerman, owner. “You're...

BlueCross BlueShield in several states plans to implement new payment rates this fall that look a lot like the Round 2 bid rates, and in some cases, worse.“They cut rates about 40%,” said Todd Tyson, founder of Hi-Tech Healthcare in Norcross, Ga., where the new fee schedule goes into effect Nov. 1. “In some cases, the rates are 6% to 8% below the Round 2 bid rates.”The single payment amounts for Round 2, implemented July 1, are, on average, 45% lower than the Medicare fee...

DETROIT - Two Michigan hospital-based systems and an affiliate of Center Line, Mich.-based Binson's Home Health Centers have agreed to merge, according to Crain's Detroit Business. Genesys Health Equipment and McLaren Home Medical are merging their DME operations into Hart Medical, Hart co-owner and managing partner Mike Damstra, told the paper. Damstra co-owns Hart Medical with Binson's. Hart now employs 85 employees, and expects to double that by the end of the year. Henry Ford Health...