ATLANTA--In an interview last week, Invacare's Lou Slangen, senior vice president, global sales and marketing, said the manufacturer's decision to halt power wheelchair sales to The Scooter Store "to me is a defining moment in the complex rehab business in how we look at servicing that patient and beneficiary."
It looks like other industry groups might think so, too. NRRTS, NAIMES and VGM's US Rehab have lined up in support of the Elyria, Ohio-based company's decision.
The rift developed between the two industry giants after The Scooter Store sent a letter to some congressional offices in December arguing against a carve-out of complex rehab from competitive bidding.
"We felt the Scooter Store's position was against everything the rehab industry has stood for," said Slangen, who said Invacare is giving up $10 million in annual sales of consumer power to the provider in a relationship that has been ongoing for more than five years. "Competitive bidding for complex rehab is not right for the beneficiary, it is not right for the industry, and we are not aligned with the Scooter Store on this matter.
"We have put our money where our mouth is," Slangen continued, "and we hope providers will see that we have taken a stand for them and support us."
With 129 locations in 47 states, New Braunfels, Texas-based The Scooter Store is the country's largest provider of standard power wheelchairs and scooters, billing Medicare for "substantially more" than $100 million annually, according to founder and CEO Doug Harrison.
Late last year the company began providing custom rehab at five locations in Texas, Harrison said. "Moving into rehab is a very logical expansion for us. We have for 17 years had to refer patients away if they needed something more complex than we could provide. It's a hard thing to tell somebody 'No, we can't help you.' We want to be able to take care of more of those people."
Harrison said competitive bidding "is a horrible program that will hurt beneficiaries, it will hurt suppliers, it will hurt manufacturers. But if they are going to do it--and they are--I believe the group that's going to be hurt the most is every beneficiary that needs power mobility ...
"If there's going to be a carve-out of this current so-called bidding program," he continued, "it ought to be for all power mobility, not just for my part of the industry, not just for the complex rehab part of the industry but for all power mobility because it's all being under-utilized."
Harrison, who said The Scooter Store submitted bids in all 10 cities in the first round of bidding, said he felt the company's split with Invacare over the complex rehab carve-out was an "honest difference." But he also said sales discussions between the two companies played into Invacare's decision.
"They wanted us to more than double our purchases from them, and we did not think that was the best decision for us at the time," Harrison said, adding he feels Invacare is taking advantage of the situation that developed to sell more of its products.
On Wednesday, the provider sent another letter, this time to state DME association leaders, explaining its stance on the carve-out:"We recently informed a handful of lawmakers about our concerns regarding legislation that would "carve out" complex rehabilitation equipment and remove it from competitive bidding. Our position has always been that all power mobility equipment should be removed from competitive bidding; we don't see much benefit in separating this small group of Medicare beneficiaries from a larger group of seniors and people living with disabilities.
"Strategically, we believe that a united front is the best position for the power mobility industry--not splintering into camps. Needless to say, The Scooter Store is astonished that our position is now being characterized as dividing the industry. We want members of your organization to know that nothing is further from the truth: We simply believe there is strength in numbers and, more importantly, that all Medicare beneficiaries in need of power mobility deserve to have us fighting on their behalf ...
"We are urging that competitive bidding for both standard and complex rehab power wheelchairs be postponed until utilization reaches CMS projections, at least."
Other letters were flying as well.
US Rehab President Jerry Keiderling informed members of the VGM rehab network that a letter to AAHomecare's Rehab and Assistive Technology Council asked the RATC to "reconsider the involvement" of Scooter Store representatives. "We simply cannot align ourselves in any way, shape or form with those destined to undermine our industry for the sake of market share," Keiderling wrote. The message urges members "to support the vendors and associations who truly support the industry ... It's time to take a stand for what we truly believe in."
Simon Margolis, executive director of the National Registry of Rehabilitation Technology Suppliers, sent a similar message to members. "NRRTS applauds Invacare Corporation's decision to no longer sell power wheelchairs to the Scooter Store ... We strongly urge all other manufacturers who do business with suppliers of complex rehab products to do the right thing and adopt a similar policy."
Harrison, however, said he is not worried that the company's other vendors will follow Invacare's lead. "We have no shortage of vendors that would like us to buy a lot of their product," he said.
"What's the surprise behind that? I have nothing but respect for Mal Mixon and Invacare and the way they have grown their business and the way they have treated us over the years we have done business with each other," Harrison said.
"The entire industry owes Mal a huge debt of gratitude that we can probably never repay for all the work he has done fighting for independent suppliers, fighting for the industry, fighting for the benefit," he continued. "A lot of people would like to find out that behind the scenes there is some dirty, juicy piece of gossip about how we got in a fight with each other, and it was just a simple disagreement on how we were going to move our businesses forward.
"I have no doubt we're going to be doing business with Invacare again some time in the future," Harrison said.
As note of Invacare's decision filtered through the industry, insiders said it was hard to tell whether The Scooter Store would feel the pain or if Invacare would see a gain.
But late in the week, a statement released by Wayne Stanfield, president and CEO of the National Association of Independent Medical Equipment Suppliers, crystallized sentiment from the independent camp:
"NAIMES applauds the stand that Invacare Corporation has taken in unity with independent equipment suppliers ... This decision sends a clear message that Invacare places consumer care and the well being of our nation's independent supplier community ahead of just making money or gaining market share.
"The DME industry must be united, and with one message,
speak strongly in support of the principles and ethics that [are]
the hallmark of the independent suppliers in America. Invacare has
taken a positive and difficult stand by its actions and deserves
the support of industry in return."
