WATERLOO, Iowa — The actions of a "prominent national
provider" are endangering the future of the HME industry, the CEO
and founder of buying group giant
target="_blank">VGM Group said in a statement distributed at
Medtrade
Spring in Las Vegas.
"We are endangered by misguided and hostile government policies,
and it is getting worse," wrote Van G. Miller in an open letter to
VGM group members. "We are also endangered by one prominent
national provider, which has engaged in practices and followed
policies that have brought this government backlash onto all the
rest of us."
In his letter, Miller asked independent providers to consider
the business practices of New Braunfels, Texas-based The Scooter
Store . The national provider routinely runs television ads
that have proven controversial in the industry and also was a
winning bidder in several markets in last year's delayed
competitive bidding project. In 2007, the company paid the federal
government $4 million and agreed to waive another $13 million in
Medicare payments to settle Medicare fraud charges.
"Consider the additional costs we all have had to bear lately
due to these aggressive marketing practices and regulatory backlash
in an environment where our net reimbursement received decreases
regularly," Miller wrote. "Think … added documentation costs,
audit risks, surety bonds, mandatory accreditation, lobbying time
and expense, etc., etc. Most of this could have been avoided if
just a few companies had heeded common sense and refrained from
figuratively 'poking the tiger with a sharp stick.'"
Mark B. Leita, senior director of government relations for The
Scooter Store, responded to Miller's letter: "In light of his
accusations, The Scooter Store recognizes there are larger issues
plaguing the home care community that require our complete
attention, such as rescinding the [interim final rule for
competitive bidding]. Our multiple manufacturing partners, as well
as the state and national organizations we work closely with, all
recognize that if we do not pull together and rescind this
government-mandated consolidation program now, quality of care for
our seniors will suffer."
Miller also took issue with Pride Mobility
Products in Exeter, Pa., saying it continues to supply the bulk
of The Scooter Store's inventory. He questioned whether The Scooter
Store was getting better support from the manufacturer in service,
terms, loaners and trial equipment than other providers.
"Is the provider that insists on using advertising and sales
tactics that anger the regulators getting better support and
service from a manufacturer than you are?" Miller asked. "Ask
… and make them prove to your satisfaction that you are not
inadvertently using a vendor who is fighting for the other
side."
He noted that other manufacturers — specifically Invacare Corp. in
Elyria, Ohio, and Permobil in Lebanon, Tenn. — "have decided not
to make these sales at our expense and are thereby not supporting a
vendor that is harming the industry and bringing down the wrath of
the regulators on us."
Pride is not the only manufacturer servicing The Scooter Store.
A visit to the provider's new mobility arm, Alliance Seating
& Mobility, for example, shows a healthy list of nationally
known manufacturers that supply products to the company.
For its part, Pride refused to be drawn into the fray. "We are
very focused on moving the industry forward. Our focus is going to
remain on moving the industry forward," said Kirsten DeLay, senior
vice president, sales management and operational planning, for
Pride.
She pointed to the company's government affairs initiative of
working to rescind the competitive bidding IFR and getting the
project eliminated altogether, as well as to the company's
philosophy of "patient first."
"That's really all around our effort to make superior products
at an economic price point, always keeping the needs of the
patients … foremost in mind," she said. "Those help all of
our providers survive and thrive. In addition to that, we have
Pride providers' standards and Quantum [Rehab] standards. And we
adhere strictly to those standards. Anyone we do business with has
to meet those standards. We feel that's a very important part of
helping the industry to move forward in having those standards and
making sure we abide by them."
