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Showing posts with label Medicare. Show all posts
Showing posts with label Medicare. Show all posts

The Buck Stops. . . Over There

An excerpt from a VGM Legislative Update email reminds us that CMS is all about saving it's bacon when it comes time to report to it's pork barrel loving bosses, the U.S. Congress. It's not enough that we are responsible to make sure the Dr.'s notes actually back up the CMN they sign, we are also fingered as the biggest de-frauders of the people and the system that we serve. And it's all your fault!


CMS Staff Briefs Congress on Competitive Bidding, and Slams the Industry
Yesterday, CMS hosted a congressional briefing on competitive bidding for the durable medical equipment (DME) in Medicare. Senior CMS officials outlined the agency's work on the competitive bidding program, summarized efforts to expand bidding to an additional 70 areas, and slammed the industry as a hotbed of fraud.
During the briefing, CMS staff claimed that DME fraud is the largest area of fraud in the Medicare program, the biggest loss to the program, and the biggest vulnerability in the program.
However, CMS staff did not describe their agency's accountability for failing to prevent criminals from obtaining Medicare supplier numbers.
Nor did CMS provide the math for how, exactly, the DME sector, about 1.7 percent of Medicare spending, could account for the largest amount of fraud in the entire Medicare program, which spends more than $400 billion per year. CMS estimates that the total cost of fraud across all sectors of Medicare is somewhere between $40 billion to $80 billion per year. So the agency's own margin of error for calculating Medicare fraud is many times greater than the total DME spending in Medicare.
Under the current system, CMS staff said, it is too easy for fraudulent suppliers to look like they meet all of the quality standards when they get their initial site visit from the National Supplier Clearinghouse and further claimed that suppliers do not uphold the standards once they have their provider number.
CMS suggested that there are116,000 DME suppliers enrolled in the Medicare program that collectively bill more than $10 billion per year and provide services to about 10 million beneficiaries per year (about one quarter of all Medicare beneficiaries).

And while it doesn't have much to do with rehab specifically, there was a frightening comment made in passing:

According to CMS staff, there is no product category for mail order diabetic supplies in round two because CMS is planning on having a national mail order diabetic program in the near future, which they are hoping can begin in 2010.

Whoah! So now the government is going to actually become a supplier? Is this a first tentative step towards the slippery slope of nationalized DME? Will grandma have to go stand in line at the Federal Oxygen Administration office, next to the DMV, to refill her tanks or have her concentrator hours checked monthly? Rehab will be just like the old Fords. You can have any color wheelchair you want, as long as you like black.

So it's obvious that CMS doesn't trust you. How much do you trust them?

The Scooter Store Keeps Taking The Hits

A few days ago we found out that Invacare had dropped The Scooter Store after learning about the letter that had been circulating around congress to discourage the rehab carve-out. The week hasn't gotten any better for The Scooter Store.


These two are not aimed specifically at The Scooter Store by name, but the timing is hard to ignore:
  • Pride Mobility has stiffened up and re-published their provider standards, putting an emphasis on mandatory annual training, ATS/ATP employed at each location, and servicing ALL products sold. Pride promises to review their suppliers annually for compliance.
  • CMS published a new set of supplier standards raising the number from 21 to 31. CMS feels that competitive bidding will weed a lot of fraudulent providers out of the system, but the increased supplier standards will discourage the few that may slip through.
Invacare has still not made a statement on InvacarePro but our local rep has been making the rounds sharing the story and the stand that Invacare has taken. Sunrise Medical is the only other provider listed on The Scooter Store's website that has not made a comment, even subtly, in response to the carve-out letter.

So is everybody ganging up on The Scooter Store, or is The Scooter Store trying to take advantage of a business opportunity that has presented itself? The letter from The Scooter Store and the statements from the CEO show two different faces of the company, one that looks out for the industry interests and one that looks out for the company interests. Who is looking out for the clients?

Breaking Up Is Hard To Do

HMENews got the scoop on the break-up between Invacare and The Scooter Store. Last week Invacare announced that they will no longer supply products to The Scooter Store stating they are, “against everything the industry stands for.”

HMENews reports that:

After 17 years of focusing on consumer/geriatric mobility and scooters, the Scooter Store began tiptoeing into the complex rehab market late last year. Then, in December, the company circulated a letter to a “handful of congressional offices” making its case that complex rehab should not be carved out of competitive bidding.

Obviously, if complex rehab is not carved out, the sheer geographic reach of The Scooter Store will make them the biggest player at the competitive bidding party.

The Scooter Store did some backpedaling about the letter and tried to toe the industry line, but revealed it's true intentions when the CEO, Doug Harrison stated, "the Scooter Store opposes it (competitive bidding); but if it must go forward, both geriatric mobility and custom rehab should be carved out; and one big bid would be more efficient for CMS than 80 smaller bids." Confused yet? It sounds like they are apologizing with their fingers crossed behind their backs.

The rest of the article dissolves into the classic he said, she said bickering that you have to listen to when your best friends break up in high school. The Scooter Store points out that Invacare will be losing a large chunk of income. Invacare thumbs it's nose at the former bed partner preferring to hang out with the whole industry instead of trying a monogamous relationship. Like most break ups, each party is quietly hurting inside but everybody on the outside is secretly happy the relationship is over.

Obviously The Scooter Store is not out of business. They no longer have any Invacare images on their website, but they are still pushing Pride Mobility and Sunrise Medical. Invacare, is banking on an increased sense of loyalty from independent rehab providers despite the fact that they have not published their story on their website. I guess they are hoping that HMENews and other industry news sources will tell their story for them.

There still isn't a clear cut winner here. The Scooter Store, like any other business will conduct business in a manner that is most beneficial for them. Competitive Bidding is not good for the industry as a whole but may be good for a small number of companies and CMS. Business owners and customers both lose when competition is artificially eliminated by the government. I don't know if Invacare struck a positive blow against Competitive Bidding or not, but they have put their money where their mouth is.

Invacare is hoping to gain some ground in the industry by showing loyalty to the industry as a whole rather than one large customer. Will Invacare's recent actions influence your product purchasing?

CMS Fraud Scoop

Flashback: Last week we covered the announcement of the 2nd round of competitive bidding noting that:

"...Medicare finished their press conference with a dig to the industry by stating that one of the reasons for competitive bidding is to end fraud and then post the information for the Medicare fraud website."

Now I'm not saying that they read my short analysis last week, but HomeCare Monday led this weeks newsletter with the headline:

CMS' Round Two Announcement Puts the Accent on Fraud
ATLANTA--Poised for months to hear the details about Round Two of national competitive bidding, home medical equipment providers were knocked off their pins last week when CMS' long-awaited announcement appeared to spin the project as an anti-fraud initiative.

HomeCare Monday goes on to give a very astute and thorough analysis, but we still got ours in first!

Comeptitive Bidding Phase II Announced

Medicare announced the next 70 MSA's that will be part of phase II competitive bidding. They also announced the equipment categories that will be involved.


1 - Oxygen Supplies and Equipment
2 - Standard Power Wheelchairs, Scooters, and Related Accessories
3 - Complex Rehabilitative Power Wheelchairs and Related Accessories
4 - Enteral Nutrients, Equipment, and Supplies
5 - Continuous Positive Airway Pressure (CPAP) Devices, Respiratory Assist Devices (RADs), and Related Supplies and Accessories
6 - Hospital Beds and Related Accessories
7 - Negative Pressure Wound Therapy (NPWT) Pumps and Related Supplies and Accessories
8 - Walkers and Related Accessories

The MSAs selected for Round Two bidding include:

West
Albuquerque, NM
Bakersfield, CA
Colorado Springs, CO
Denver-Aurora, CO
Fresno, CA
Las Vegas-Paradise, NV
Los Angeles-Long Beach-Santa Ana, CA
Sacramento--Arden-Arcade--Roseville, CA
Salt Lake City, UT
San Diego-Carlsbad-San Marcos, CA
San Francisco-Oakland-Fremont, CA
San Jose-Sunnyvale-Santa Clara, CA
Visalia-Porterville, CA

Midwest
Akron, OH
Chicago-Naperville-Joliet, IL-IN-WI
Columbus, OH
Dayton, OH
Detroit-Warren-Livonia, MI
Flint, MI
Grand Rapids-Wyoming, MI
Huntington-Ashland, WV-KY-OH
Indianapolis-Carmel, IN
Milwaukee-Waukesha-West Allis, WI
Minneapolis-St. Paul-Bloomington, MN-WI
Omaha-Council Bluffs, NE-IA
Toledo, OH
Wichita, KS
Youngstown-Warren-Boardman, OH-PA

South
Asheville, NC
Atlanta-Sandy Springs-Marietta, GA
Augusta-Richmond County, GA-SC
Austin-Round Rock, TX
Baton Rouge, LA
Beaumont-Port Arthur, TX
Birmingham-Hoover, AL
Cape Coral-Fort Myers, FL
Charleston-North Charleston, SC
Chattanooga, TN-GA
Columbia, SC
Deltona-Daytona Beach-Ormond Beach, FL
El Paso, TX
Greensboro-High Point, NC
Greenville-Mauldin-Easley, SC
Houston-Sugar Land-Baytown, TX
Jackson, MS
Jacksonville, FL
Knoxville, TN
Lakeland, FL
Little Rock-North Little Rock-Conway, AR
Louisville/Jefferson County, KY-IN
McAllen-Edinburg-Mission, TX
Memphis, TN-MS-AR
Nashville-Davidson-
Murfreesboro-Franklin, TN
New Orleans-Metairie-Kenner, LA
Ocala, FL
Oklahoma City, OK
Palm Bay-Melbourne-Titusville, FL
Raleigh-Cary, NC
Richmond, VA
San Antonio, TX
Tampa-St. Petersburg-Clearwater, FL
Tulsa, OK
Virginia Beach-Norfolk-Newport News, VA-NC

Northeast
Allentown-Bethlehem-Easton, PA-NJ
Bridgeport-Stamford-Norwalk, CT
Hartford-West Hartford-East Hartford, CT
New Haven-Milford, CT
New York-Northern New Jersey-Long Island, NY-NJ-PA
Scranton--Wilkes-Barre, PA
Syracuse, NY


So it looks like complex rehab will still be included in the competitive bidding meaning that further efforts are needed in the efforts to regarding the carve-out. I also noticed that Medicare finished their press conference with a dig to the industry by stating that one of the reasons for competitive bidding is to end fraud and then post the information for the Medicare fraud website.

Bidding is scheduled to begin this summer. Will you bid or find alternative revenue streams?