The debate over the Medicare Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) continues (see, i.e., DM 8089--enter the story code in any DOTmed search box). The House of Representatives Small Business Committee has just completed a hearing on the impact of competitive bidding on small businesses in the durable medical equipment community. The witnesses included representatives from the Centers for Medicare & Medicaid Services, associations of medical equipment suppliers, and medical professionals.

Laurence D. Wilson, Director, Chronic Care Policy Group, Center for Medicare Management Centers for Medicare & Medicaid Services testified that the previous round of the competitive bidding program proved the program could provide value to both patients and Medicare, while ensuring delivery of quality items and services. "CMS has taken care to design and implement this program in a way that emphasizes the needs of beneficiaries while addressing the concerns of small suppliers," Wilson said in his testimony. He said that CMS will continue to extensively educate stakeholders about the competitive bidding program when the program begins again in 2009.

Industry Viewpoint

However, Wayne Stanfield, President and CEO of the National Association of Independent Medical Equipment Suppliers stated that "Competitive bidding has no place in healthcare and will result in higher costs to Medicare, lower quality products and less access to needed services by Medicare beneficiaries," and that competitive bidding is an "exclusionary process" for small business. In addition, Georgetta Blackburn, member of the board of directors for the American Association for Homecare, testified she believed providers of home medical equipment "face serious disruption to their businesses if competitive bidding becomes the primary mechanism for Medicare to set reimbursement rates."

Also testifying was Robert Brant, co-owner and manager of City Medical Services in North Miami Beach, FL and current President of the Accredited Medical Equipment Providers of America (AMEPA), an organization formed, Brant said, shortly after the bid results were announced last March, by bid winners and loser from the Miami, Orlando and Dallas MSAs, all opposed to the Competitive Bidding program. Brant testified regarding loss in the number of equipment providers since the inception of the program, and the dangers of that loss. "Our services keep patients out of hospitals and rehab centers, so they can live independently in their homes," Brant testified. "During this economic crisis we do not want to needlessly close companies, causing more bankruptcies, burden the system with additional unemployment (which will end healthcare benefits), ruin an important community resource called upon during natural disasters and most importantly limit a patient's access to care."

Adapted from the witness list and testimony from the House of Representatives Small Business Committee's Subcommittee on Rural Development, Entrepreneurship and Trade Hearing webpage on "The Impact of Competitive Bidding on Small Businesses in the Durable Medical Equipment Community."

Read more at:
http://www.house.gov/smbiz/democrats/hearings/hearing-2-11-09-sub-DME-bidding-process/2-11-09-sub-DME-bidding.htm

More Industry Headlines