LUBBOCK, Texas — With the Jan. 1 go-live date fast approaching and an industry waiting on CMS' revelation of contract winners for Round 1 of competitive bidding, "it's a scary time," said The MED Group's Wayne Grau, vice president of supplier relations and government affairs.
"We're still fighting this thing," Grau said. "We've got to get it killed."
But no matter what happens, providers are going to have to change the way they do business to deal with whatever the industry's new scenario turns out to be, Grau said. If bidding is implemented, HME companies need to be armed with information and marketing tools whether they win or lose a bid "or if they are prepping for Round 2."
The Lubbock, Texas-based member services group has announced a series of competitive bidding seminars in each of the Round 1 CBAs beginning next week, and has also begun a 13-week "revenue diversification and enhancement series" pointing up market opportunities.
"We're showcasing some additional product lines that are not in the normal lineup" such as hot and cold therapy and diabetic shoes, said Grau. "It's not just about the product area but what the economics are, how you market it and how you bill and document," he said. Providers also have to figure out whether any of the market's emerging opportunities "will fit into their business processes and if it is something they want to take on."
Grau said HME providers need to realize "they have to be better at what they do and really focus on what brings value to the consumer and the patient. They will have to ditch anything that's not bringing in money or value."
Describing himself as "an optimist at heart," Grau believes "there are a lot of smart people in this industry who, once they know the rules, will change to make sure they can still deliver quality goods and services to their patients. The good providers are going to try to get ahead of the curve and change beforehand."
It's just figuring out what those rules might be that is the question, he said. "What shape the industry's going to be in, whether it's next year or four years from now or 10 years from now, no one knows. But DME is not going to dry up; seven thousand Americans turn 65 every day.
"Where that ends up? Nobody's got a crystal ball," Grau said. "I see great companies out there. Some will fail, some will do OK and some will be very successful."
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