Independents Rank Bidding as Issue No. 1

MARTINEZ, Ga. — Based on a new survey from CSI:HME, the
Committee to Save Independent HME Suppliers, independent providers
are more worried about competitive bidding than anything else,
although repeal of the 36-month cap on home oxygen rental is a
close second.

Of 242 people responding to a poll asking them to rank the
industry’s most important issues, 111 listed the repeal of
competitive bidding as their No. 1 concern, followed by repeal of
the oxygen cap (102) and, at a distant third, eliminating the 9.5
percent reimbursement cut on complex rehab equipment (14). Six
respondents said carving oxygen out of DME into a stand-alone
provider category was their top priority, while another six put
strengthening supplier site inspection requirements at the head of
their list. Three said amending the surety body requirement to
exempt all but new applicants or providers with adverse actions in
the past five years was their most important concern.

Those participating in the survey represent 567 locations in 42
states and employ 7,784 people.

Commenting on the emphasis providers placed on competitive
bidding, Tom Inman, president of Virginia Home Medical and CSI:HME
member, said it reflects the fear that many providers
“can’t survive competitive bidding.” Esta
Willman, president of California’s Medi-Source Equipment &
Supply, agreed, noting that failure to win a bid on top of the
recent cuts to oxygen fees will put many companies out of usiness.
“Independent providers like me will have difficulty surviving
unless they win the bid,” said Willman.

CSI:HME Managing Director David Petsch, owner of Petsch
Respiratory in Martinez, Ga., said he was not surprised to see
competitive bidding as the top concern. “With the
unreasonably low fees in the first bid, most providers are very
concerned that the rebid prices will be driven even lower by the
fear of being left out,” he said.

Petsch added the recently formed organization will use the
survey results to set its priorities for legislative action. A more
detailed survey on competitive bidding will be launched in a few
days, the group said, followed by a survey on oxygen and how the
cap has affected patients and suppliers.

Other results from the survey show:

• 233 respondents support H.R. 2373 (the Home Oxygen
Patient Protection Act), which would repeal the 36-month cap on
oxygen payments.
• 76 support an oxygen reform plan that moves home oxygen
from the DMEPOS benefit into a separate provider category.
(Forty-nine respondents did not support the plan, and 117 said they
were undecided.)
• 85 percent of respondents said they had personally
contacted their congressional representatives in 2009.
• 178 said they support having a lobbyist specifically to
represent the interests of independent providers.

CSI:HME will hold the current survey open until June 12 to allow
additional comments. Take the survey at
FreeOnlineSurveys.com/rendersurvey.asp?sid=1ou56qsdhtk1sfd587984.