ORLANDO, Fla. — Rotech Healthcare said this week the company was offered 17 contracts in the Round 1 rebid of national competitive bidding, while Susquehanna Financial Group reported that respiratory giant Lincare, Clearwater, Fla., went 0 for 9.
In a press release, Rotech said it had accepted contracts in:
- six MSAs for oxygen supplies and equipment;
- six MSAs for enteral nutrients, equipment and supplies;
- three MSAs for CPAP, RADs and related supplies and accessories; and
- two MSAs for standard power wheelchairs, scooters and related accessories.
The three-year contracts are scheduled to take effect on Jan. 1, 2011.
"We are pleased with our success in the Round 1 rebid of the national competitive bidding program and we look forward to further growth and expansion of our existing presence in these initial cities," Philip L. Carter, Rotech's president and CEO, said in the release. "The new payment rates for our six oxygen contracts averaged approximately 30 percent off the current applicable Medicare payment rates.
"Not assuming any market share gains," Carter continued, "the application of the new competitive bid rates to our existing patient base in these nine MSAs reduces our revenue by approximately $900,000 in the first quarter of 2011. We believe, however, that our market share gains in the cities where we were awarded contracts will more than offset the reductions in reimbursement rates over time."
Rotech operates in 48 states through approximately 450 locations primarily in non-urban markets.
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