New Survey on Costs for Complex Rehab Providers

BUFFALO, N.Y.—Draft legislation to establish complex rehab
technology as a separate
Medicare benefit is winding its way to the table, but a crucial
financial score is yet to come as stakeholders continue to lay the
groundwork with members of Congress.

To strengthen the push for support, the Simon Business School at
the University of Rochester is conducting a survey to collect key
data on CRT providers’ financial performance and operating
expenses. The National Coalition for Assistive and Rehab Technology
sponsored a similar industry survey in 2008, but that relied on
2007 results.

Much has changed since then, including the Medicare 9.5 percent
reduction plus additional cuts at the state and private insurer
levels. More current financial information is necessary to show
legislators what’s going on with CRT providers’
“high operating costs and low profits,” said NCART
Executive Director Don Clayback.

“As we share the challenges that CRT providers are facing,
it’s helpful when we can share data that has been
independently gathered,” Clayback said. “CRT advocates
will be able to use the results of the survey in their discussions
with payers and policymakers on federal, state and private
levels.”

In the future, he said NCART plans on making this an annual survey
“so we can track and report on CRT industry trends and key
business indicators each year” that providers can use both
for advocacy and business management.

The 14-question survey is open to all CRT providers across the
country, and worksheets are available to help with answers. Survey
responses are due by May 6, 2011.

NCART will hold a webinar on Friday, April 15, at 3 p.m. ET, to
review the survey and answer providers’ questions. The
webinar is open to all interested parties, and advance registration
is not required. Attend the webinar at www2.gotomeeting.com/join/806289499
or dial in at 773/945-1018. Use meeting ID 806-289-499.

Providers and other advocates at the CELA conference in February

began the Capitol Hill drive for creation of the CRT
benefit.

“There is lot going on in DC, but we are staying in the
fray,” Clayback said. “The need for a separate benefit
category is gaining consumer and clinician support. We have engaged
a Washington, D.C., research firm to prepare an estimate of the
financial scoring of the proposed legislation, and we expect that
report by the end of the month. Once we have that, we will be
following up with targeted congressional offices to get a bill
introduced.”

Clayback pointed out that the private firm charged with estimating
the cost of the draft legislation is using a Congressional Budget
Office model, so the results should prove illuminating.

“We will share our estimated scoring with the members of
Congress that are considering introducing the legislation,”
explained Clayback. “The next step will be when the member of
Congress sends a formal request to the CBO asking for an official
scoring of the legislation.”

In the event of an unfavorable score, Clayback said, the goal of
the legislation will remain but different tactics may come into
play.

“Changes from this legislation will have some cost,” he
said. “But out of this will come significant improvements to
access for Medicare beneficiaries with disabilities along with
stronger program safeguards. Our plan is to work with potential
congressional sponsors and other supporters to address the cost
issue and identify potential offsets [if necessary] that can be
allocated to this legislation.”

For more information on the survey, contact Clayback at [email protected] or Sandesh
Gannavaram, survey administrator, at the Simon School of Business
at [email protected].