Hold ‘Em or Fold ‘Em? Medtrade Spring Draws Providers in Search of Help

LAS VEGAS–The exuberant atmosphere that so often characterizes
Medtrade Spring was largely absent at this year’s event, held last
week in Las Vegas. But most HME providers who attended agreed the
expo was the place to be for those seeking critical information on
how to do business in an industry turned inside out.

About 7,500 people, some 1,600 of them manufacturers, turned out
for the event, according to show officials. It was the first
industry conference since CMS released its final rule on
competitive bidding and an Aug. 31 accreditation deadline for
providers in the 10 MSAs where bidding will roll out.

Questions about the two topics were pervasive, and providers
frantic for answers crowded seminars covering the issues, often
overflowing into the halls of the Las Vegas Convention Center.

“Competitive bidding is foremost in everybody’s mind, that and
the accreditation [deadline] coming up in August,” said Sherman
Mead of Golden Technologies in Old Forge, Pa. “They’re trying to
get a feel for what the reimbursement is going to be, the changes
[coming up] and how they are going to affect their business.”

“Everybody is trying to figure out how to stay in business,”
said Viola Jenkins, whose HME company, VitaCare Inc., is located in
Dallas, one of the first cities where competitive bidding will
debut. “Everything we do is in there,” Jenkins said about the
products included in the bid. “All of our products are going to be
affected.

“Medicare is a huge percentage of our business,” she continued.
“We will bid; we’re just trying to figure out how to bid. Should we
bid directly or should we join a network?”

Seminar presenters were inundated with questions like Jenkins’
and others about competitive bidding, ranging from the very basic
“What is competitive bidding?” to “Should I even stay in the
business?”

“People are trying to understand what this means for them and
what they need to do in their business,” said Mike Mallaro, CFO for
VGM Group, Waterloo, Iowa. The buying group’s booth drew scores of
members and non-members alike, many of whom wanted suggestions for
new niche markets and cash-only items they could tap into to shore
up their bottom lines, he said.

While it appeared difficult for many providers to wrap their
minds around the reality of what lies ahead for HME, Mallaro said,
“I think most people are beginning to understand. But the devil’s
in the details.”

And the details of the 401-page final rule–such things as the
components of a bid, who can be in a network and how bids will be
evaluated–are overwhelming for providers to absorb in such a short
time, stakeholders said. After releasing the rule on April 2, CMS
said it would try to open bidding by the end of this month (see
today’s top story for more).

“The [providers] I spoke to … didn’t understand competitive
bidding at all,” said Robert Thompson of DMETrain in West
Springfield, Mass., adding that his booth was “swamped” with
providers clamoring for information.

The topic of accreditation was equally confusing for those who
flocked to accreditors’ booths.

Susean Nichols of Millennium Management Services in Long Beach,
Calif., said most providers were hoping for easy answers to their
accreditation queries, but unfortunately, they were
disappointed.

“They’re trying to grasp onto the slightest bit of information
like that’s it. And that’s not it. That’s just the starting point,”
she said.

Christine MacDonnell of the Commission on Accreditation of
Rehabilitation Facilities also noted that the issue was just “too
new” for most providers, especially small company owners who had
never before considered accreditation. “They don’t know the
questions to ask,” she said.

Karen Taylor, a physical therapist with Dove Medical Supplies in
Cheektowaga, N.Y., called accreditation “a little overwhelming,”
but added, “we better get it going.” She and others from her
company, including owner Loretta Carr-Stock, R.N., were checking
out all the accreditors to find one that would suit their
business.

“With competitive bidding and Medicare changing everything, it
seems like everything is coming at once,” said Carr-Stock.

While there were new products and new manufacturers on the
exhibit floor to generate enthusiasm among providers looking for
sparkplugs for their businesses, a number were still questioning
whether, in the light of competitive bidding and mandatory
accreditation, they would even stay in the business.

It was, perhaps, the biggest–and most disturbing–question of
all.

“I think there will be people who throw up their hands and walk
away,” said Nichols on the last day of the show. “But this industry
is built on the backs of small providers. So they can’t go
away.”