Trammell of Carolina’s HME: Ready to See the Whites of Competitive Bidding’s Eyes

MATTHEWS, N.C. — With the start date for DMEPOS competitive bidding just
weeks away, 356 contract holders in the nine Round 1 competitive
bidding areas are ramping up for an influx of customers — and
they’re doing it in different ways.

Some are adding trucks, beefing up inventory, installing new
technology and/or hiring people. Frank Trammell, CEO and president
of Carolina’s Home Medical Equipment in Matthews, N.C., is holding
tight.

Trammell, whose seven-year-old company won four contracts
— oxygen, CPAP, power wheelchairs and walkers — in the
Charlotte CBA has done what he’s going to do, at least until he
sees competitive bidding in action, he said.

“I’m not going to add locations and there’s no need to add
trucks,” he said. “I’m playing it close to the vest right now. I’m
waiting until I see the whites of its eyes. I’ve been telling my
people all year that this is a practice year for next year,”
Trammell continued, “so we have been refining our practices and
we’re pretty darn efficient … I think we’re ready.”

Earlier this year, he expanded the company’s showroom to 3,000
square feet and converted to a program that e-mails or auto dials
patients about supplies “instead of our normal friendly real person
calling.” The larger location allows room for growth, Trammell
said, and he is looking for another customer service
representative. Other than that, he wants to wait to see what
happens.

Trammell, who was also a bid winner in the original Round 1,
which Congress aborted in July 2008, said that judging from his
fellow contract holders in the Charlotte area, he anticipates
modest growth in three of the four categories for which he accepted
contracts. Carolina’s HME should be able to handle that growth, he
said.

However, his CPAP business could be another matter. There are
thousands of Medicare beneficiaries in the CBA whose machines have
capped out, Trammell said, and come Jan. 1, it is likely the
providers they are accustomed to dealing with will not be able to
serve them.

“A lot of the big guys in town did not win CPAP bids,” he said,
adding that he anticipates many of those beneficiaries will be
contacting Carolina’s HME. “I think the CPAP [business] is going to
increase a little faster. It’s OK. We can gear up for it.”

Still, he is not stocking up. “I get calls from CPAP suppliers
saying, ‘Don’t you need to put in a humongous order right now?’
Well, maybe, but I’m not.”

He doesn’t see the point in stockpiling inventory until it is
necessary. “They can get it to me in 24 hours,” he said. “We will
have to react fast, but we’re pretty good at adapting.”

Even bolstering his fleet isn’t a problem, Trammell said. “I’ve
got some delivery technicians’ resumes on file. I can buy a van in
an hour and have it lettered the next day, so it’s not going to
take us a long time to rock and roll. That’s what it means to be a
small, local, family-run company. It doesn’t take long to get the
board together.”

While he’s never been in favor of competitive bidding and has
worked for its elimination, he now believes it’s too late in the
day for a delay.

“Let’s just get on with it,” Trammell said. “Let’s just see if
it’s going to work. If we delay it, what we do is create an
opportunity for someone to figure out how to do it better. Let’s
just watch it crash and burn.”

He has no doubt the CMS system will do just that. And if it
does, he will have no regrets about his company’s preparations.

“I would love it to go away,” Trammell said about competitive
bidding. “But if it does go away, it’s not been in vain. I think
it’s made us a far better company.”

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