With prices for Round 1 of competitive bidding due out this month providers were anxious about their chances for survival, and emotions were running high.
by Gail Walker (gwalker@homecaremag.com)

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Invariably every couple of years, a touring company of
“Annie” comes to town.

It's hard not to be hopeful listening to the newest red-headed
orphan belt out the venerable show tune that draws a crowd to the
Broadway musical every time:

“The sun'll come out tomorrow. Bet your bottom dollar
that tomorrow, there'll be sun …

“Tomorrow! Tomorrow! I love ya, Tomorrow! You're always
a day a-way!”

Tomorrow was exactly what providers were thinking about at
Medtrade Spring. But they weren't thinking in the same optimistic
terms as Annie.

With prices for Round 1 of competitive bidding due out this
month — CMS may have announced them by the time you read this
— providers were anxious about their chances for survival,
and emotions were running high.

As I was talking to one longtime HME owner about the situation,
she began to cry. With tears streaming down her face, she said,
“I've just realized I'll have to close my business. I don't
think I can win a bid, and if I don't, I won't make it.”

As the reality of competitive bidding hits, it seems many others
feel the same way.

The results of HomeCare's May web poll, in fact, offer
some sobering
insights into providers' plans for the future
: More than a
third of those participating don't think they have one in HME.

While just over half said they have no plans to leave the
business, the rest aren't so sure. The numbers, though
unscientific, are an unfortunate reminder of CMS' projection that
after competitive bidding is fully implemented, only half of DMEPOS
providers will still be in the Medicare business.

“I know your poll results are disturbing, but they are not
surprising,” Sean Schwinghammer, executive director of the
Accredited Medical Equipment Providers of America, told Senior
Editor Susanne Hopkins in an interview about the poll. He noted the
level of frustration and discouragement that is pervading the
industry, adding that a survey he did for AMEPA in November
revealed much the same results as HomeCare's.

“I personally called all the providers in greater
Miami-Dade County and in Dallas, and nearly 50 percent were
planning to no longer be involved in Medicare. Just about 48
percent were either getting out of the Medicare business or were
out of the business,” he said. “My take on this is that
your poll is reflective of what we found. People have just reached
their limits.”

Wayne Stanfield, president and CEO of the National Association
of Independent Medical Equipment Suppliers, also said he was not
shocked by the poll results. “If we are unable to end
competitive bidding in a sensible manner with H.R. 3790 before we
reach the contracting stage, I think the number of those leaving
the business is going to far exceed even these poll numbers,”
he said.

Stanfield pointed out that unless Congress steps in once again,
there won't be anything to stop the juggernaut bidding program.

“We have one last, best hope,” he said. “If
H.R. 3790 doesn't end competitive bidding, the industry is going to
change radically. [Competitive bidding] could collapse under its
own problems, but unfortunately, there is going to be blood in the
streets — and it's going to be that of the beneficiaries and
suppliers.”

If there has been no action on H.R. 3790 to repeal competitive
bidding by the time you receive this magazine, I urge you to keep
up the fight. Contact your representative if he or she has not
signed on to cosponsor the bill, and ask House leadership to send
the legislation to the floor. Do it for your business, your
employees, your patients — and for your tomorrow.