DMEPOS Bidding Presents Major Problems for Equipment Providers
Published: 2009-12-25 19:59:33
Author: Astrid Fiano | DOTmed | December 21, 2009
The Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) competitive bidding program Round One Rebid window for bidding closes today. Many DMEPOS suppliers have been highly critical of the bidding process and its effect on the industry.
DOTmed spoke with Rob Brant, president of Accredited Medical Equipment Providers of America, (AMEPA) of North Miami Beach, FL, regarding the DMEPOS bidding program. AMEPA was started by Brant and other equipment providers in April 2008 in response to the original Round One results of the DMEPOS program. DMEPOS was part of the Medicare Modernization Act in 2003, with competitive bidding in ten metropolitan areas. The organization is national, but primarily focused in Round One areas. Brant explains that the results of the first competitive bidding were a steep reduction in equipment providers, and cuts in reimbursement.
"One of the first things that happened was reduction of 90 percent of the providers. Eventually the program was delayed by the MIPPA Bill of 2008. Congress delayed continuing the bidding program because of certain problems--the large reduction of providers and the fact that unlicensed, inexperienced, and out-of-state companies won bids while 90 percent of providers in the areas were removed from the program."
Miami: A Case in Point
In the Miami Tri-County area, Brant reports, 500 oxygen providers were reduced to only 44. Nine of the actual bid winners were not licensed as Medical Oxygen Retail Establishments, Brant points out, and had not handled oxygen services previously. "They had set up a low-end bid, and some were trying to sell their winning bid after the fact. You can sell your business including the bid contract; companies will bid without the intention of servicing patients--they don't even have a physical location in the area. They called up companies that did not win the bid and asked if they wanted to buy their company, essentially buy their contract. This situation has not been changed; you can still sell your business and transfer the bid contract to the new owner, turning the winning contract into a commodity."
Full story
Published: 2009-12-25 19:59:33
Author: Astrid Fiano | DOTmed | December 21, 2009
The Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) competitive bidding program Round One Rebid window for bidding closes today. Many DMEPOS suppliers have been highly critical of the bidding process and its effect on the industry.
DOTmed spoke with Rob Brant, president of Accredited Medical Equipment Providers of America, (AMEPA) of North Miami Beach, FL, regarding the DMEPOS bidding program. AMEPA was started by Brant and other equipment providers in April 2008 in response to the original Round One results of the DMEPOS program. DMEPOS was part of the Medicare Modernization Act in 2003, with competitive bidding in ten metropolitan areas. The organization is national, but primarily focused in Round One areas. Brant explains that the results of the first competitive bidding were a steep reduction in equipment providers, and cuts in reimbursement.
"One of the first things that happened was reduction of 90 percent of the providers. Eventually the program was delayed by the MIPPA Bill of 2008. Congress delayed continuing the bidding program because of certain problems--the large reduction of providers and the fact that unlicensed, inexperienced, and out-of-state companies won bids while 90 percent of providers in the areas were removed from the program."
Miami: A Case in Point
In the Miami Tri-County area, Brant reports, 500 oxygen providers were reduced to only 44. Nine of the actual bid winners were not licensed as Medical Oxygen Retail Establishments, Brant points out, and had not handled oxygen services previously. "They had set up a low-end bid, and some were trying to sell their winning bid after the fact. You can sell your business including the bid contract; companies will bid without the intention of servicing patients--they don't even have a physical location in the area. They called up companies that did not win the bid and asked if they wanted to buy their company, essentially buy their contract. This situation has not been changed; you can still sell your business and transfer the bid contract to the new owner, turning the winning contract into a commodity."
Full story