First-Round Bid Deadline Tomorrow
BALTIMORE–Less than two days remain for HME providers to submit
bids for the first round of CMS’ DMEPOS competitive bidding
project–and this time there’s no last-minute extension in sight,
according to industry stakeholders.
Bids must be submitted electronically through the Competitive
Bidding Submission System by 9 p.m. ET tomorrow. Bidders must also
submit a variety of hard copy documents, including financial
statements, postmarked by the Sept. 25 deadline.
In addition, according to a notice on the Competitive Bidding
Implementation Contractor Web site: “All bidders must certify their
bids in the CBSS before the close of the bidding period. To certify
a bid in the CBSS, click on ‘Certify’ on the Bid Certification page
of Form B. All bidders must also print and sign this bid
certification page and submit it to the CBIC along with the other
required hard copy documents.”
Just hours before the previous bid deadline of July 27, CMS
extended the bidding window by 60 days. But another extension is
unlikely this time around.
“I do not think there will be an 11th-hour extension–nor have I
heard a loud outcry for one,” said John Gallagher, vice president
of government relations for Waterloo, Iowa-based buying group VGM.
Gallagher said providers he has spoken with had finished bidding
shortly after the extension and some had “reviewed their bids and
corrected any problems that were made in haste.”
As well, observers said they did not expect a last-minute rush
to bid. “I think the vast majority of providers submitted bids at
the time of the original deadline,” said Miriam Lieber of Sherman
Oaks, Calif.-based Lieber Consulting.
Both Lieber and Gallagher said they were unaware of any current
major system problems such as those that crippled the bidding prior
to the July 27 deadline.
Those comments were echoed by Walt Gorski, vice president of
government relations for the American Association for Homecare. “We
are hearing of minor technical glitches, but nothing at the same
magnitude as we had before the 60-day extension,” Gorski said.
He was concerned, however, that as late as Sept. 19, CMS was
offering new guidance via the “frequently asked questions” section
on the CBIC site. “Right now, our major concern is what happens
with the bid applications that CMS deems as incorrect or
incomplete. The guidance has changed as to how members will be
contacted or if they will be contacted,” Gorski said.
Bidders should take precautions by checking on the status of
their bids, Lieber said. “I would recommend that every provider who
submitted a bid review their submission to be sure it was complete
and marked as such by the CBIC.”
The CBSS provides a private, unique home page for each bidder
that allows them to check on the status of their bid.
AAHomecare reported last week that provider Anthony LaCute of
Seeley Medical in Andover, Ohio, had done just that. “He found that
his company’s Form A had been deemed ‘incomplete’ because of the
way the online bidding system treated an entry of ‘0 years and 8
months’ for length of time in business for one of the locations,”
AAHomecare said.
“LaCute’s take-away lesson was: Even if you receive certified
confirmation that your hard copy was received, make sure to check
the CBSS to see whether the status of your bid has changed.”
Meanwhile, even as the clock ticks closer to the bid deadline,
providers are finding themselves in a holding pattern. CMS will not
announce winning bidders until February 2008; competitive bidding
begins July 1.
Pro2 Respiratory Services in Cincinnati, Ohio, was an early
bidder. “We bid by the first deadline,” said Genie Cordes,
executive vice president, adding that she believes the majority of
providers had done the same.
While Cordes said it took company executivs a month to develop
their bid, Pro2 did have an advantage: All of its nine branches,
only one of which is in a competitive bidding area, are already
accredited.
Now, Cordes said, “It’s a waiting game for us.”
It’s a waiting game for Riverside Medical Supply Co. in
Riverside, Calif., too, but the result could be vastly different.
Owner Peter Kim said he did not bid.
“We weren’t prepared for the qualifications,” he said, noting
that the small mom-and-pop business could not afford the cost of
accreditation. First-round bidders are required to be accredited by
Oct. 31 in order to win a contract.
“We needed more time to prepare and more education on how to get
into the bidding,” Kim added.
His company handles a lot of Medicare business, Kim said, and he
knows that competitive bidding has put his business in jeopardy.
“We are just waiting and seeing what is going to be happening,” he
said. “With Medicare reimbursement, they are cutting and cutting.
We are thinking about whether we should continue in this
business.”
Providers such as Pro2, however, are determined to survive. Even
as it waits for the bid results, the company is seeking better ways
to do business, Cordes said. “We’re trying to be a little smarter
about delivery services, because certainly allowables are going to
change. We’re trying to be smarter about how we are serving people
without cutting our service to people.”
Gorski said providers should also use the time to contact
members of Congress regarding pending legislation that affects
competitive bidding and the HME industry.
“With the prospect of not winning a bid becoming more of a
reality, suppliers must push for the provisions in the
Tanner-Hobson legislation, which include an ‘any qualified
provider’ provision as well as restoring due process rights for HME
providers,” he said. “We are entitled to know how decisions that
will make or break companies are being made by CMS. Those decisions
should not be made in a black box without accountability.”
Gorski said industry stakeholders should be strongly
apprehensive about where HME stands on the legislative front
regarding Medicare. “Both the House and the administration have
shown a willingness to cut HME while the Senate has not produced a
package,” he said. “We must redouble our efforts over the coming
weeks and months to work on all these issues. They are not going to
magically disappear without the strong support from lawmakers in
both parties.”
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