WASHINGTON--Following Pride Mobility Products' findings of possible round one bidding improprieties in the Riverside-San Bernadino CBA, federal legislators representing southern California have added their weight to the call for an investigation of the matter.

In a May 13 letter addressed to Department of Health and Human Services Secretary Michael Leavitt, Reps. Jerry Lewis, R-Calif.; Ken Calvert, R-Calif.; and Mary Bono Mack, R-Calif., wrote of a "potential problem" with bids in the standard power wheelchair category that warrants further investigation.

"There have been reports that a health care consultant worked directly with a wholesale distributor to establish pricing levels," the representatives told Leavitt. "It is our understanding that the consultant then approached DME providers in the Riverside-San Bernardino CBA offering to submit their bids for certain categories of products. We are told that the prices submitted by 19 providers for the standard power wheelchair category were virtually identical and that 18 of the 19 were awarded standard power wheelchair contracts. Our constituents inform us that the only winning bidders used this consultant.

"This matter must clearly be investigated," the letter continued. "If a review of the initial bid prices submitted by those awarded the standard power wheelchair contract show[s] collusionary activity, it also calls into question the numerous other bids for categories that were also developed by the same health care consultant. In that event, we call for suspension of implementation until all contracts can be reviewed."

In a letter to Leavitt earlier this month, Pride Chairman and CEO Scott Meuser notified the HHS Secretary of the issue and requested an immediate investigation.


"I think this clearly shows there was something in the system that didn't work," said Seth Johnson, vice president of government affairs for the Exeter, Pa.-based manufacturer, in an interview at Medtrade Spring.

Referring to the fact that the winning PWC bids in Riverside-San Bernadino "were identical or within pennies of each other," Johnson said, "this is just further evidence there's a real problem here and that this program needs to be stopped and closely evaluated prior to moving forward with the implementation of round one."

Johnson said the issue could spread beyond standard PWC bids. "It is is our understanding that the consultant also developed bids for other product categories ... and was successful in the hospital bed category," he said.

While Pride has not yet heard back from Leavitt, Johnson said, the company has begun working with PWC providers in the Dallas CBA to assess the situation there, and also may look into the Miami and Orlando bidding areas.