PHOENIX—Recent moves from Washington meant to fight fraud may hurt legitimate home medical equipment (HME) providers as much or more than the bad actors they’re targeting, advocates and leaders said Tuesday, March 3 as the industry gathered for Medtrade 2026.
“There are going to be a lot of unintended consequences,” to the new competitive bidding program and other efforts by the Centers for Medicare & Medicaid (CMS), Tom Ryan, president and CEO of the American Association for Homecare (AAHomecare), said at the advocacy group’s annual update at the conference and expo in Phoenix. “The sustainability of all of you in this room is at risk right now… Basically, we’re fighting for our existence right now.”
RID Program Is Next Battle
The revived competitive bidding program was a focus of conversation and educational sessions at the show; Ryan and other AAHomecare leaders said they are still focused on blocking some of the most drastic components of it. One immediate focus is on halting the Remote Item Delivery (RID) program, which would centralize contracts among a handful of large suppliers, leaving most companies with no realistic way to participate and likely leading to massive consolidation in the sector.
“That is the death knell of the industry. That can’t happen,” Ryan said, adding that advocates will meet with the White House and CMS next week on the topic. “We need everyone to take this moment—it’s a defining moment—and make sure it doesn’t happen.”
HME Moratorium Raises Questions
A six-month moratorium on new Medicare supplier numbers for HME providers, which was just announced last week, also “puts a black eye on the industry,” Ryan said.
“It is an incredibly broad moratorium,” Cara Bachenheimer of Brown & Fortunato said in a conference session on legislative and regulatory priorities earlier in the day. “It is one thing to go after all these bad actors… (who are) bilking the Medicare program, but unfortunately it is written so broadly” that it may also prevent scrupulous existing companies from opening new locations or selling.
She said advocates plan to work with CMS to try to get an exemption for existing suppliers (probably those who have been active for more than 36 months) to continue normal business activities.
One provider that may be affected is DASCO Home Medical Equipment, which has 41 locations and plans to add provider numbers for three new ones—a project it had been working toward for a while, including getting leases and licenses, before submitting its application on Feb. 26. The moratorium was announced Feb. 25 and is believed to be in effect as of Feb. 27, when it was published in the Federal Register.
“You want the fraudsters to (stop) because they all hurt us, but it would be great if established companies can grow,” said Jeaneen Cole, vice president of quality and compliance for DASCO. “I get the goal, but the execution of it seems careless.”
Ryan said that the industry must be proactive in working with Washington to fight fraud, and there are more efforts to come on that front.
“We want to stand up and be a partner with CMS when it comes to fraud; we want to get in front of it,” he said. “We are the good guys.”
Homecare Champion Recognized
Ryan also awarded the organization’s Van Miller Homecare Champion Award to John Quinlan, president of Quinlan’s Pharmacy and Medical Equipment, saying his hard work earned him the nickname “Mr. Persistent” from New York Medicaid.
“I’ve seen firsthand how your persistence and steady leadership can turn a “no” into “let’s figure this one out,” Ryan said.