AAHomecare Launches Oxygen Utilization Data Repository

ALEXANDRIA, Va.–The American Association for Homecare’s
HME/Respiratory Therapy Advisory Council is collecting data about
what kind of oxygen systems patients use to help draw a better
picture of home oxygen utilization nationwide.

According to Council Chairman Jeff Wills of Oklahoma City-based
CV Solutions, the association’s “ultimate goal is to be able to
prove the utilization of products and services to CMS and other
bodies.”

In recent months, a debate over access to portable oxygen
systems has grown in respiratory circles. The National Association
for Medical Direction of Respiratory Care has questioned Medicare’s
current modality-neutral reimbursement–that is, reimbursement that
does not differentiate liquid oxygen from other systems–and has
circulated a draft position paper on the subject among its board.
Some have said modality-specific reimbursement, which would
separate liquid oxygen, could be a more appropriate reimbursement
model.

Earlier this year, AAHomecare announced that, as one of its
priorities for 2005, it would work to preserve Medicare’s current
payment methodology. But NAMDRC has contended the reimbursement
model may hinder access to portable liquid systems, which it says
generally bring less provider profits than bulkier systems.

Other stakeholders, though, say the present method has not
created any access problems–particularly considering the
increasing sales of home oxygen filling systems, which allow users
to fill portable units themselves.

“If the reimbursement for an E cylinder is the same amount as
for a $2,000 to $3,000 widget, it’s not hard to understand [why]
some patients [have] E cylinders instead of $2,000 widgets that
might be more medically appropriate,” said NAMDRC Executive
Director Phil Porte. “It’s understandable that [a provider] would
invest hundreds of dollars rather than thousands of dollars to get
the same amount of money. That’s capitalism.”

Porte added, however, that “there are certainly complex issues
involved with modality-specific [reimbursements]. How do you stop
the pendulum from going to solely and singularly the $2,000 and
$3,000 widgets?”

In other words, some observers say, modality-specific
reimbursement could spawn over-utilization of more expensive liquid
systems.

Wills explained that AAHomecare’s effort to collect data on
oxygen use is “not specifically being gathered for [NAMDRC],” but
for use by regulatory bodies and various industry and clinical
groups. “We saw the need from an HME and respiratory therapy
standpoint to begin to collect data to show what the accessibility
for portable oxygen really is,” Wills said, “and we’re in the
process right now of doing just that.”

He added the association hopes to partner with industry buying
groups this summer to gather data from non-association members as
well, and to have “a good sampling of data” by the fall.