California Reps Call for Closer Look at Riverside Bids

WASHINGTON–Following Pride Mobility Products’ findings of
possible round one bidding improprieties in the Riverside-San
Bernadino CBA, federal legislators representing southern California
have added their weight to the call for an investigation of the
matter.

In a May 13 letter addressed to Department of Health and Human
Services Secretary Michael Leavitt, Reps. Jerry Lewis, R-Calif.;
Ken Calvert, R-Calif.; and Mary Bono Mack, R-Calif., wrote of a
“potential problem” with bids in the standard power wheelchair
category that warrants further investigation.

“There have been reports that a health care consultant worked
directly with a wholesale distributor to establish pricing levels,”
the representatives told Leavitt. “It is our understanding that the
consultant then approached DME providers in the Riverside-San
Bernardino CBA offering to submit their bids for certain categories
of products. We are told that the prices submitted by 19 providers
for the standard power wheelchair category were virtually identical
and that 18 of the 19 were awarded standard power wheelchair
contracts. Our constituents inform us that the only winning bidders
used this consultant.

“This matter must clearly be investigated,” the letter
continued. “If a review of the initial bid prices submitted by
those awarded the standard power wheelchair contract show[s]
collusionary activity, it also calls into question the numerous
other bids for categories that were also developed by the same
health care consultant. In that event, we call for suspension of
implementation until all contracts can be reviewed.”

In a letter to Leavitt earlier this month, Pride Chairman and
CEO Scott Meuser notified the HHS Secretary of the issue and
requested an immediate investigation.

“I think this clearly shows there was something in the system
that didn’t work,” said Seth Johnson, vice president of government
affairs for the Exeter, Pa.-based manufacturer, in an interview at
Medtrade Spring.

Referring to the fact that the winning PWC bids in Riverside-San
Bernadino “were identical or within pennies of each other,” Johnson
said, “this is just further evidence there’s a real problem here
and that this program needs to be stopped and closely evaluated
prior to moving forward with the implementation of round one.”

Johnson said the issue could spread beyond standard PWC bids.
“It is is our understanding that the consultant also developed bids
for other product categories … and was successful in the hospital
bed category,” he said.

While Pride has not yet heard back from Leavitt, Johnson said, the
company has begun working with PWC providers in the Dallas CBA to
assess the situation there, and also may look into the Miami and
Orlando bidding areas.