Progressive Medical Equipment

LENEXA, KS - If you want a preview of rationed healthcare in the name of cutting costs and fraud, Kansas City residents need to look no further than the competitive bidding program established by the Centers for Medicare and Medicaid Services (CMS). The concept of "competitive bidding" is simple. CMS establishes MSAs and then creates a list of equipment for providers to bid on in these MSAs. By doing so, CMS hoped to find the lowest market price for the items Medicare currently pays for as a "fee for service" item. In each MSA, CMS, not the marketplace, would determine how many medical equipment providers are necessary to guarantee service and then pick the lowest bidders.

Since April 2007, when CMS chose Kansas City as one of the first ten MSAs for the initial round of competitive bidding, local business owner, Gerald Sloan, has been trying to bring the topic of competitive bidding in the Home Medical Equipment industry to the attention of consumers, media, Congressional leaders and industry peers. Through his quest to evaluate and discuss the ramifications of such a program, Sloan was invited by Missouri Congressman, Blaine Luetkemeyer, to testify at the Small Business Sub-committee hearing on Competitive Bidding in Washington D.C. on February 11, 2009 (link below). As a result of those hearings, the program was put on hold to make modifications. However, modifications made do not address the flaws of this program and only serves to display the government's lack of understanding for free enterprise and business economics. Link to subcommittee hearings in 2009:

http://www.youtube.com/watch?v=Zhh8WmNcOvM&feature=PlayList&p=98C43859123E190F&index=12

Proof of this can be noted in a recent news interview on NBC Action News (link below). A comment from a CMS Kansas City Administrator illustrates their cavalier attitude and lack of knowledge about the program's impact: the program "does not represent such a large part of a supplier's business that it should run them out of business." There are many small medical equipment businesses that have over 90% of their revenues coming from Medicare transactions. If those businesses do not get chosen as a provider, they are certainly impacted in a BIG way. Link to NBC newscast, 1/2010:

http://www.nbcactionnews.com/content/health/story/New-Medicare-Program-Scares-Small-Business/iOKJDfaRpk2VDzUQhf0S7g.cspx

There are many other flaws within the system that will lead to less service for the consumer. Some providers are bidding on and initially won a bid for products they don't yet normally sell and service. How is that going to better serve the consumer? Businesses may drop out of the marketplace due to the inability to cover costs, which leads to fewer providers selling to more consumers, thus reducing service capacity. It is questionable as to how much CMS will really save in this program. Whereas the DME industry itself has proposed HR 3790, a bill committing to self-imposed cost-cutting measures without forcing businesses out of the marketplace.

The elimination of fraud is also in question through this program. The industry has been very pro-active in trying to rid fraudulent suppliers from their ranks. They have implemented accreditation requirements, surety bond requirements, proper licensing and are subject to random audits by CMS. CMS' thorough administration of these action steps would better serve to reduce or eliminate fraud.

Sloan's greatest concern of the competitive bidding program is that the business of people.s healthcare is being treated as a product instead of a service. .There are a myriad of examples, very personal and moving stories, of how the service our company provides greatly impacts a person's ability to use or even acquire the equipment necessary to improve his/her mobility," stated Sloan. .If we (the HME industry) could get politicians to understand how much time and expertise we invest in helping customers get the right equipment, I don.t think they would liken the purchase of home medical equipment to that of buying office supplies," Sloan continued.

Home Medical Equipment is the foundation that allows people to stay at home and live independently. Without their oxygen, wheelchairs, or hospital beds, disabled beneficiaries would not be able to live in a dignified manner at home. HME allows Medicare and ultimately taxpayers to save hundreds of millions of dollars in hospital and nursing home stays.

Progressive Medical Equipment has served the home oxygen and home medical and rehabilitation equipment needs of the Kansas City Metro Area and surrounding communities since 1999. Progressive is the region's wheelchair seating and positioning expert, a member of MAMES (Midwest Association for Medical Equipment Services). The company is also accredited through CHAP (Community Health Accreditation Program, Inc) and is ATP (Assistive Technology Provider) certified through (RESNA) The Rehabilitation Engineering and Assistive Technology Society of North America.

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