HME News

December 2011

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s Whatever happens with competitive bidding, providers need to make changes, says Wayne Grau. See page 13. s Product Focus: For this month's Product Focus, we asked manufacturers to submit aids to daily living, like this Lifestyle Essentials Molded Stocking Aid from Drive Medical. See pages 30-31. HME NEWS POLL s More than three quarters of HME providers say their customers aren't aware of the diffi culties providers face. Yet, the majority of providers say they are educating those customers, using various methods. See results on page 38. VOLUME 17 — NUMBER 12 DECEMBER 2011 $7.00 THE BUSINESS NEWSP APER FOR HOME MEDICAL EQUIPMENT PRO VIDERS NEWS s New study says HME saves billions. PAGE 4 s CMS defi nes durability. PAGE 4 s Don't get "punked" on audits, says Andrea Stark. PAGE 10 SMART TALK s This month, our columnists tackle fast sales, intangible assets, managed care and private-pay collections. PAGES 16-17 COMMENTARY s Although CMS has a larger annual budget than the Pentagon, the agency has not had a confi rmed head since 2006, writes Joel Solkoff. This absence of leadership has led to an ineffi cient system that doesn't serve benefi ciaries. PAGE 12 DEPARTMENTS PROVIDERS s A Turning Leaf enters medical supplies markets. PAGE 19 s COPD-TV looking for HME providers. PAGE 20 s Lincare reports income loss. PAGE 21 MOBILITY s Pilot program collects outcomes data. PAGE 23 s Q&A: Paul Tobin. PAGE 23 s NCART creates educational video. PAGE 25 RX & SPECIALTY PROVIDERS s NHIA releases survey results. PAGE 27 s NCPA's Doug Hoey talks pharmacy issues. PAGE 27 s 'Do the right thing.' PAGE 28 VENDORS s Inogen settles into role. PAGE 33 s Invacare lays off 50. PAGE 33 s Roundtable offers product opinions. PAGE 34 WWW.HMENEWS.COM AAH pushes unity on bid alternative Not all stakeholders OK with keeping Round 1 in place BY LIZ BEAULIEU, Editor ATLANTA – The HME industry needs to resist the urge to pick apart a new market pricing pro- gram (MPP) for HME, said Walt Gorski during the AAHomecare Washington Update at Medtrade in October. So far, the MPP, an alternative to the current competitive bid- ding program, has been "well received" on Capitol Hill, said Gorkski, vice president of gov- ernment affairs for AAHomecare. "This is head and shoulders Still above where we are right now," he said. "There's not going to be a lot of room for negotiation. If there's disunity, it's going to be set aside." Provisions of the MPP include using a clearing price instead of a median price as the single pay- ment amount; making contracts binding; and restricting bid areas to smaller areas. One provision that stakehold- ers predict will be the toughest pill for providers to swallow: maintaining Round 1 until the MPP is implemented. "(Round 1) is the reason we're having this conversation," said John Shirvinsky, executive direc- tor of the Pennsylvania Association ALTERNATIVE SEE PAGE 6 Homecare Super Bowl Tom Ryan, CEO of Farmingdale, N.Y.-based Homecare Concepts and Joe Lewarski, vice president of clinical affairs of Invacare, received Homecare Champion awards at AAHomecare's Standup for Homecare reception at Medtrade in October. The award recognizes AAHomecare members for contributions to the homecare community throughout an individual's career. Ryan, a New York Jets fan, got an added bonus: an autographed football. standing Providers move on after Humana, Apria agreement BY THERESA FLAHERTY, Managing Editor YARMOUTH, Maine – Several months after Apria Healthcare contracted with Humana to become a pre- ferred provider, other HME pro- viders have managed to maintain their footholds with the insurer. Earlier this year, Humana announced that it had named APRIA SEE PAGE 20 Complex rehab bill has a sponsor Industry stakeholders 'crack the congressional barrier' BY ELIZABETH DEPREY, Associate Editor WASHINGTON – After nearly two years of effort, the com- plex rehab separate ben- efit bill now has a sponsor. Rep. Joseph Crowley, D-N.Y., is a member of the Ways and Means Committee, one of the two committees with juris- diction over HME (the other Don Clayback being Energy and Com- merce). This makes him a key person to put behind the bill, said Simon Mar- golis, NRRTS executive director. "Don (Clayback) and Gerry (Dickerson)'s persistence made this happen," said Margolis. Dickerson, vice president for rehab technology for Medstar Surgical and Breathing in College Point, N.Y., made the announce- ment as he was being honored with the inaugural David. T Williams Advocacy Award at Medtrade's NRRTS luncheon. CRT SEE PAGE 25 Drive acquires Inovo/Chad BY LIZ BEAULIEU, Editor PORT WASHINGTON, N.Y. – Drive Medi- cal announced in October that it has acquired Inovo/Chad Thera- peutics, paving the way for it to become a more signifi cant player in the respiratory market. "This is just the beginning for us," said Harvey Diamond, presi- Drive also buys ActiveCare See brief page 33 dent of Drive Medical. "We're looking to make some addition- al acquisitions in this category." Inovo/Chad Therapeutics will operate as a standalone division of Drive Medical and will contin- ue to manufacture products from its Harvey Diamond facility in Naples, Fla. Inovo, which manufactures oxygen conserv- ers and regulators under private label, acquired Chad Therapeu- tics, a leading DRIVE SEE PAGE 31

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