Invacare, VGM Partner on Support for Independent HMEs

LAS VEGAS–At a Wednesday morning press conference during
Medtrade Spring, Invacare Corp., Elyria, Ohio, and VGM Group,
Waterloo, Iowa, announced a partnership that will “give independent
providers more access to government relations, education and
innovative products and programs,” the companies said.

“By teaming with Invacare, VGM will give its members an even
better chance to remain profitable, independent entities servicing
the needs of millions of health care beneficiaries,” said Van G.
Miller, VGM CEO and founder, in a press release, which noted that
the 2,100-member buying group was formed “to help independent
providers stay that way.”

Together, the two companies said they will offer
independents:

–Full-time government relations through both companies’
lobbying efforts in Washington, D.C., and at the grass roots
level.

–Guidance on competitive bidding, including a Web site
providers can use as a resource center, advice and assistance in
bid preparation, and an aggressive push for the Tanner-Hobson bill
“to make sure the voice of the independent provider is heard on
this critical issue.” (For more on the Tanner-Hobson bill,
officially known as H.R. 1845, the “Medicare Durable Medical
Equipment Access Act of 2007,” see HomeCare Monday, April 2.)

–Public relations for the HME industry to raise awareness about
the benefits of home care. The two companies “will also work with
the independent provider to self-police the industry and rid it of
fraud,” the release said.

–Joint development and distribution of education and training
materials to providers and customers on product, reimbursement and
clinical information.

VGM members will now have access to Invacare products and
programs, and the companies will also make a broader variety of
financing options available to providers, they said.

“We want the independent providers who are out there servicing
their customers and trying to make it better within the
reimbursement system that’s available to them for the consumers to
survive,” said Carl Will, group vice president of Invacare’s HME
Group, at the press conference, noting that estimates of
independent providers that may not be financially viable under
competitive bidding range from 20 percent to 40 percent.

“People still do business with people,” Will said. “Service is a
significant component of home care, and small companies can be
outstanding at service, so for us not only to provide choice but
also have a variety of companies in our customer base is helpful.
The nationals obviously are a big part of our industry, and we’re
very glad to do business with them. They’re aligned with us in
making sure the industry is healthy as well, but there’s room for
and a need for the independents.”

Government relations will be a key focus of the new partnership,
according to Will. “This is a huge period of change, and it’s very
difficult for the independent provider to have a voice,” he said,
adding that the companies will concentrate on passage of the
Tanner-Hobson bill. “Tanner-Hobson is very important for the
independents because it brings some boundaries to the bidding
process and it allows the smaller players to be able to compete in
a straightforward manner.”

The proposed legislation–if Congress approves it–would allow
any qualified provider to continue providing Medicare products at
the bid rate, as long as they have submitted a bid below the
current allowable.

“If it doesn’t pass, I don’t know what happens,” Will said. “I
just know that it’s probably not good.

“We’re encouraging [independent providers] to support
Tanner-Hobson, to educate themselves on what their costs are, to
educate themselves on the [bidding] process,” said Will. “If the
economies and the process and their will are all aligned, then of
course [we’re encouraging them] to bid because, otherwise, they’re
no longer going to be a player in those particular products, and
that could significantly impact the rest of their business as
well.”

“We see clearly that competitive bidding is a threat to the
small provider,” added Lou Slangen, Invacare’s senior vice
president of global market development. “With the right support
from companies like VGM and Invacare, they can make it in business,
and secondly, Tanner-Hobson gives them the opportunity to
play.”

Commenting on the new partnership, Invacare Chairman and CEO Mal
Mixon said, “VGM has done a great job of rallying independent
providers and giving them opportunities and resources that they
would not typically have. Now that competitive bidding is here, it
is even more important that Invacare and VGM, two of the largest
players in the HME industry, team together to fight for the rights
of the independent provider and the beneficiaries they serve.”

Concluded VGM General Counsel Jim Walsh at the press conference,
“Invacare has proven that they get it and that we’re in a fight for
our lives.”