CHATSWORTH, Calif., and NAPLES, Fla. — CHAD Therapeutics announced Oct. 29 that that it has suspended operations due to the inability to raise additional capital. Following the sale of its oxygen business to Inovo in February, the company had been looking for capital to market products it was developing for the sleep disorder market, including its proprietary FloCHANNEL Diagnostic System, which received FDA clearance in July.

Knoxville, Tenn.-based Omni Healthcare, which provides home infusion pharmacy products, DME and respiratory therapy, has been acquired by Birmingham, Ala.-based Principle Pharmacy Group.

With eight staff members, Omni's Memphis Specialty Clinic provides home infusion services and specialty compounded preparations to hospitals and home patients, and plans to expand operations to long-term care facilities.

BALTIMORE--For months, providers and other industry advocates have been asking CMS for guidance on numerous issues surrounding the 36-month oxygen rental cap, which becomes effective Jan. 1. On Thursday, they got some answers, but far from those they had been hoping for.

Based on a summary from Waterloo, Iowa-based VGM, the new rules stipulate that HME providers with patients on service in the 36th month are required to:

ATLANTA--Propelled by the hope of gaining tools to build a firmer foundation in the ever-shifting sands of the home medical equipment industry, thousands of providers converged on the Georgia World Congress Center in Atlanta last week for the 29th annual Medtrade.

The venerable expo and conference boasted some 600 exhibitors and 170 educational sessions on everything from outsourcing oxygen to retail and rehab.

ATLANTA--At Medtrade, held Oct. 27-30 at the Georgia World Congress Center, providers and others working in HME got an eyeful of new technologies and services. But according to many, it could take more than product breakthroughs to prosper in the next several years.

Following are some show attendees' thoughts on the industry's coming challenges.

ATLANTA — Thousands of home medical equipment providers who survived a year of industry chaos and sea changes are expected to descend on the Georgia World Congress Center in Atlanta this week for Medtrade 2008, but it won't be business as usual for them.

This year, providers say, they're looking for more answers and more information—and Medtrade organizers promise they'll find it.

MIAMI--According to CMS’ Joel Kaiser, deputy director of DMEPOS policy, the agency may begin providing guidance on capped oxygen service, maintenance and replacement by Oct. 31.

In preparation for a Medtrade session on the oxygen rule changes he will conduct at Medtrade this week, Rob Brant, president of the Accredited Medical Equipment Providers of America, contacted Kaiser to ask when providers could expect answers to questions surrounding the impending cap.

BALTIMORE--Following a 4 1/2-hour conference Oct. 14 to advise providers on meeting its quality standards for mandatory accreditation, CMS posted the revised standards on its Web site last Tuesday.

The final standards are similar to the draft standards proposed in February, according to the agency’s Sandra Bastinelli, who conducted the explanatory conference. However, the changes do include:

FARGO, N.D.--Recent analysis of claim denials show a high number of claims denied for Certification of Medical Necessity (CMN) or DME Information Form (DIF) issues, Noridian Administrative Services, the Jurisdiction D DME MAC, notified providers last week.

The percentage of claims being appealed for these denials is estimated at 35 percent of the appeals workload, or 18,233 appeals. The average cost of these denials for one year is approximately $1.4 million, NAS said.