VGM Forms Competitive Bidding Network

Waterloo, Iowa

VGM has submitted an application to form a network for members who are interested in participating in DME Medicare competitive bidding.

The application, made in the name of Homecare Providers of America, officially starts the paperwork process required for its members to form and bid as a “network primary supplier,” according to the buying group.

While the final rule on the competitive bidding program has not been issued, VGM said it had submitted the application now to make sure that it is processed before bidding begins in 2007.

Forming the network would allow members of VGM, US Rehab and Nationwide Respiratory to participate as either a network member or a subcontractor under the combined bid and service process. Members would be able to select participation levels, product types and geographic service levels within the bid areas.

As long as enough members are interested in working together, VGM said that it expects to operate programs in each competitive bidding area — CMS has yet to name the 10 cities in which the program will take place — and that it has developed proprietary software that will allow billing and accounting under a network system.