News - AARO Medical

Talk about a face lift

IRVINE, Caif. - Fisher & Paykel is no longer the "ugly duckling" when it comes to CPAP therapy.
On Sept.1, the No. 3 player among sleep manufacturers (Respironics and ResMed lead the pack) rolled out the Premo, the first of three CPAP devices that comprise the company's new Icon line. The sleek devices come in stainless steel and other neutral contemporary colors and resemble modern bedside alarm clocks--not drab, beige clinical equipment.
If fact, the Icon doesn't just look like an alarm clock.; it is one. To free up space on the nightstand, it includes a digital clock and alarm.
"We are going after consumer appeal," said Robin Randolph, marketing manager, North America. "Acceptance has to come before adherence, and we think having the device look not like a medical device may create acceptance toward therapy versus, 'Oh, no,'"
In short, perception is reality. If a CPAP machine resembles an everyday household item, patients will more likely comply with therapy, said Randolph, adding that research supports this perspective.
In designing the Icon, Fisher & Paykel worked three years to combine style and substance. Each unit, for example, comes with patented ThermoSmart heated humidification. Unlike other CPAPs on the market, Randolph said, ThermoSmart is "hidden" inside the Icon unit and not hooked on as an attachment.
Fisher & Paykel developed three Icon models to meet a variety of patient needs:
*    Novo: A standard CPAP with RAMP and basic compliance reporting.
*    Premo: A fixed-pressure unit that tracks patient information, including usage, mask leaks and apnea hypopneas.
*    Auto: The most advanced Icon senses irregular breathing during the transition from sleep to awake and reduces pressure to help the user go back to sleep.
Fisher & Paykel is scheduled to unveil the Novo and Auto at Medtrade in November.
"We've gone from being the ugly duckling to the swan," Randolph said. "We've finally met the consumer's needs and what the HME industry has been requesting from F&P."

Posted on 2 September 2010 | 11:00 pm

'Intense' battle for referrals rages on

Some independent HME companies say hospitals are being more "aggressive" about referring patients to their own HME companies.
"It's been more intense lately," said Kathy Nichols, vice president of operations at Prestonburg, Ky.-based Cooley Medical Equipment, which competes with hospital-owned HME companies in a handful of its nine territories. "Everyone's trying to drive up their revenue."
From a legal standpoint, there's nothing stopping hospitals from referring patients to their own HME companies, say industry attorneys.
Still, some independent HME providers think it's bad form.
"I've had some of my patients go to a hospital-affiliated doctor for power wheelchairs and the next thing you know the patient's referred to their PT and their HME company," said Steve Bach, president of Springfield, Mo.-based Bach Medical Supply, which competes with two hospital-owned HME companies. "They say it's for continuance of care."
Some independent HME companies say they can't really blame patients, especially those who've never needed equipment before, for going with the flow and using a hospital-owned HME company.
"If you're getting out of the hospital and someone tells you that you need a wheelchair and that you can get it from someone you prefer to do business with or you can get it from the hospital-owned HME company--you have to be realistic," said Jeff Friedman, owner of New Orleans-based Total Health Solutions, which competes with one hospital-owned HME company. "Unless there's a prior relationship with an independent HME company, that company is invisible to the patient."
That's why both Nichols and Friedman ramp up their advertising presences in areas where they compete with hospital-owned HME companies. Friedman even created a handout that he distributes to patients that says: "You have a choice; if you're in the hospital and need services, you have the right to ask for us."
"We do have patients who are loyal to us and want to continue doing business with us," he said.
Hospital-owned HME companies say that they honor patient choice and that the playing field is no different for them.
"My physicians, right now, if I'm not over there marketing like all of the rest of the DME guys, I won't get the business," said Ron Burns, director of the rehab department at Springfield, Mo.-based CoxHealth Home Support Systems, part of CoxHealth. "It's a fight."

Posted on 2 September 2010 | 11:00 pm

In brief: AAH debuts audit survey tool, CMS denies request

ARLINGTON, Va. - AAHomecare has developed a new tool to make it easier for providers to share their audit experiences. The tool allows providers to check boxes to identify the type of auditor, the type of product being audited and specific issues of concern related to the audit request. The association is collecting examples where CMS and/or its contractors have exceeded their authority in conducting these audits. It's focusing on the CERT, RAC, DME MAC, ZPIC and PSC audits for oxygen, power wheelchairs, CPAP, NPWT, diabetic supplies and hospital beds. AAHomecare would like providers to submit examples by Sept. 24. To use the new tool, go to www.aahomecare.org and click on "Medicare Audit Survey" under "What's new."

CMS: 'Interim list of suppliers' would create confusion, CMS says
WASHINGTON - CMS has denied a request by 136 members of Congress that it release the names of the competitive bidding winners, AAHomecare reported last week. CMS announced the winning bid amounts in July, but it doesn't plan to release the names of the bidding winners until some time in September. That spurred Reps. Jason Altmire, D-Pa., and Ralph Hall, R-Texas, and their co-signers to send CMS a letter on Aug. 11 asking for greater transparency in the process. But in an Aug. 30 letter to Altmire, Hall and their co-signers, the agency states: "First and foremost, we believe that providing a series of interim lists of suppliers would result in beneficiary confusion, undermining the orderly and effective implementation of the program. In addition, we have not yet notified the suppliers whose bids were not among the winning bids and we believe that these suppliers should be notified before the names of the suppliers with winning bids are released to the public. Further, announcing a subset of suppliers before the contracting process is complete could be viewed as giving those suppliers an unfair competitive advantage. To read the letter in full, go to aahomecare.org and click on "CMS Response to Transparency Letter" under "What's New."

Medtrade keynote speaker offers 'roadmap to success'
ATLANTA - The keynote speaker at Medtrade Nov. 15-18 at the Georgia World Congress Center will be Clifford Schorer, entrepreneur in residence at the Columbia University Graduate School of Business. His presentation, sponsored by ResMed Corp., will address "The Power of Innovation and Creativity in Today's Turbulent Business Environment: A Roadmap to Success in the HME Industry." It will take place Nov. 16 at 9 a.m. in Marcus Auditorium and will be open to all attendees and exhibitors.

AHP one step closer to being 100% owned by Highland
BRENTWOOD, Tenn. - AmericanHome Patient (AHP) announced last week that 6.9 million shares of the company have been tendered for 67 cents per share pursuant to the self-tender offer made July 7. AHP has accepted the shares for payment. The shares, when added the shares owned by Highland Capital Management and its affiliates represent 87% of the outstanding shares of the company. AHP has also completed restructuring its senior debt into two, four-year secured term loans. "The successful completion of the offer and the debt restructuring are each steps in a series of transactions that are expected to result in the company becoming 100% owned by Highland," AHP stated in a release.

GF promotes Ken Spett to president, COO
ATLANTA - Graham-Field has promoted Ken Spett to president and COO. Spett began his career with GF in 1983 as vice president of operations for Labtron Scientific Corp., then corporate vice president of marketing when Labtron and GF merged. He later served as GF's vice president and senior vice president of its Medical/Surgical Division, and most recently, executive vice president. Spett will focus on operations and sales, while Beatrice Scherer will continue, in her role as CEO, to oversee administration and strategic planning.

DME provider charged in $87 million fraud scheme
NEWARK, N.J. - The founder and president of Allied Health Care Services, an Orange, N.J.-based DME provider, was arrested last week for fraudulently obtaining more than $87 million from banks based on phony lease agreements. According to the U.S. Attorney's Office, Charles Schwartz, 56, of Sparta, N.J., obtained the money by telling banks that it would be used to lease valuable medical equipment, but in reality, he never leased the equipment. Schwartz used the money to, among other things, repay earlier bank loans that were part of the scheme. By August 2010, several banks that had loaned him money filed lawsuits against him, claiming that he owed them at least $20 million. If convicted, Schmartz faces a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.

Posted on 2 September 2010 | 11:00 pm

Reporter's notebook: 'Seniors fear nursing homes more than death'

ELYRIA, Ohio - Dr. Steve Landers of the Cleveland Clinic said something very interesting last week at Invacare's annual Media Day. He called home care "futuristic."
That's not something you hear every day, especially with Medicare and other payers cutting reimbursement right and left, and refusing, for the most part, to recognize the important role home care plays in keeping patients happy, healthy and out of more expensive institutional care.
Landers specializes in home care at the Cleveland Clinic. By futuristic, he means that home care is the future on health care, or at least a key component. It's inevitable that more and more institutional care will transition to the more cost-effective home setting. Remote monitoring, mobile diagnostics and other technology is already paving the way for this, he said.
During his 30-minute talk, Landers also said that "home is integral to one's health and well being" and that "seniors fear nursing homes more than death."
Landers is a good guy for the HME industry to have on its side.
Here are a few more tidbits from Invacare's Media Day:
- During a panel discussion, one of the questions asked was: What's the biggest thing HMEs can do to become more efficient? The unanimous answer: Use technology to do more with less.
- Invacare is not an "altruistic" company," and won't lend money to just any old provider, said Carl Will, senior vice president of Invacare Homecare. Picking the right HMEs to work with will determine a great deal of Invacare's success. The publicly traded company will help providers develop business plans that address competitive bidding and other reimbursement cuts, but it's up to individual providers to execute the plan. Will did not mince words. Executing a new business plan can be "treacherous," but providers have no choice and those that succeed will "reap rewards."
- Don't ignore the Internet. Seniors spend, on average, 45 minutes a day online, and the majority of boomers use search engines to gather healthcare information, said Daniel Lee, Invacare's vice president of marketing. "People are shopping more online and want to know what their choices are," he said. "As needs increase, consumers will speak up more about access issues."
- Even with reimbursement declining, the industry cannot cut corners, said Lou Slangen, senior vice president of worldwide market development. Manufacturers must make better products and maintain quality and reliability. Providers should consider outsourcing and other strategies to reduce costs and still meet patient needs.
- Mal Mixon, who suffered a mild stroke earlier this year, made a surprise appearance toward the end of the day. He started off by saying: "Hello, everybody, I've been wounded." Mixon has returned to his duties as chairman of the board, and while he's getting stronger every day, he's not sure if or when he'll resume his CEO duties. "I hope to come back, but I'm not sure that I will," he said.

Posted on 2 September 2010 | 11:00 pm

First-month purchase option: Industry takes temperature for delay

WASHINGTON - Reps. Jim Langevin, D-R.I., and Glenn Thompson, R-Pa., are circulating a Dear Colleague letter to support the industry's efforts to delay a provision that eliminates the first-month purchase option for standard power wheelchairs Jan. 1.
Stakeholders also expected to have a Dear Colleague letter circulated in the Senate this month.
"This gives us a good opportunity to quantify the level of support in Congress," said Seth Johnson, vice president of government affairs for Pride Mobility Products.
The industry seeks to delay the provision for one year in exchange for a 1% reduction in the consumer price index-urban update (CPI-U).
In addition to members of Congress, the industry's efforts have received support from numerous consumer groups, most recently the American Association of People With Disabilities.
Stakeholders hope this support will carry some weight when they approach members of key committees in the House and Senate about including the delay in one of the Medicare-related bills that are expected to move through Congress before the end of the year.
"We want to make sure we're in the best possible position to catch that train as it moves quickly through in the fall," Johnson said.
If the provision is implemented on Jan. 1, however, there's still a lot the industry still doesn't know. The biggest thing on the minds of providers: If a beneficiary doesn't need his wheelchair after, say, five months into the 13-month capped rental period, and a provider cleans the chair and puts it back out, does a new rental period start?
"That's the way traditional rentals of DME work, and I think that's the best-case scenario," Johnson said. "But there are a lot of unknowns right now. There are a lot of issues--what happens when there is a break in service, what kind of documentation will be required? We don't know."
Read Langevin and Thompson's letter here: http://www.aahomecare.org/associations/3208/files/DelayFirstMonthPurchaseOptionDC083110.pdf?utm_source=Members-Only+Updates&utm_campaign=c8ecd1ec49-Wednesday+in+Washington_Report_9_1_10&utm_medium=email

Posted on 2 September 2010 | 11:00 pm

The Scooter Store pursues life outside power mobility

NEW BRAUNFELS, Texas - The Scooter Store announced last week that it has created a home medical equipment division to complement its power mobility business.
Chris Bailey, a licensed vocational nurse who has been at The Scooter Store since 1999 and who has held management positions since 2006, will lead the new division as vice president.
"Our long-term vision and goal is 'To give every senior or disabled American the ability to live their entire life safely and confidently at home,'" stated Doug Harrison, founder, chairman and CEO of The Scooter Store, in a release. "To fulfill that goal, our company must evolve beyond providing just power mobility solutions and focus on meeting the holistic needs of our customers."
The HME division will operate out of The Scooter Store's corporate headquarters here to leverage existing infrastructure, systems, processes, customer intake, compliance management, revenue cycle management, and national distribution and service capabilities.
Initially, the HME division will focus on targeted markets with a select portfolio of equipment. Eventually, through organic growth and through strategic relationships with licensed and accredited partners, it will expand into a full, national footprint, The Scooter Store stated in the release.
The Scooter Store began its foray outside of standard power wheelchairs and scooters in 2007, when it launched a complex rehab division, Alliance Seating and Mobility. That division now employs more than 80 assistive technology professionals (ATPs).

Posted on 2 September 2010 | 11:00 pm

CMS: 'Interim list of suppliers' would create confusion

WASHINGTON - CMS has denied a request by 136 members of Congress that it release the names of the competitive bidding winners, AAHomecare has learned.
CMS announced the winning bid amounts in July, but it doesn't plan to release the names of the bidding winners until some time in September. That spurred Reps. Jason Altmire, D-Pa., and Ralph Hall, R-Texas, and their co-signers to send CMS a letter on Aug. 11 asking for greater transparency in the process.
But AAHomecare has learned from congressional sources that CMS will not release the names of the winning bidders. In an Aug. 30 letter to Altmire, Hall and their co-signers, the agency states:
"First and foremost, we believe that providing a series of interim lists of suppliers would result in beneficiary confusion, undermining the orderly and effective implementation of the program. In addition, we have not yet notified the suppliers whose bids were not among the winning bids and we believe that these suppliers should be notified before the names of the suppliers with winning bids are released to the public. Further, announcing a subset of suppliers before the contracting process is complete could be viewed as giving those suppliers an unfair competitive advantage.
"In addition, the premature release of information may jeopardize the procurement process itself. At the request of the DMEPOS industry, the Request for Bids, which outlined the requirements governing the bid submission and evaluation process, indicated that bidder information could only be disclosed in an anonymous or aggregate format and that proprietary information would be protected from disclosure. Further, standard procurement rules prohibit disclosing the identities of bidders until after contracts are final."
To read the letter in full, go to aahomecare.org and click on "CMS Response to Transparency Letter" under "What's New."

Posted on 30 August 2010 | 11:00 pm

In brief: HME companies thrive, Medtrade makes moves

In brief: HME companies thrive, Medtrade makes moves
More than a dozen HME providers and manufacturers were named to Inc. Magazine's list of 5,000 fastest growing private companies last week. A sample of the companies featured: Extrakare in Norcross, Ga., at 1,564; Cape Medical Supply in Sandwich, Mass., at 4,179; Comfort Medical Supply in Ormond Beach, Fla., at 461; and Neighborhood Diabetes in Woburn, Mass., at 1,139. "Despite the difficult economic environment and the unique challenges faced by durable medical equipment suppliers, our team has exceeded the goals established in the company' business plan annually since the company was founded," stated Scott Lloyd, co-founder and president of Extrakare in a release." In the face of significant reimbursement reductions, Extrakare generated strong internal growth in patient census and total revenue in 2009." To view the list, go to http://www.inc.com/inc5000/2010/index.html.

Congress: Keep retail pharmacies out of it
WASHINGTON - Community pharmacy champions in Congress urged CMS last week to keep competitive bid pricing for Part B mail order diabetes testing supplies separate from those supplies offered by retail pharmacies. In an Aug. 24 letter to Administrator Donald Berwick, Rep. Mike Rogers, R-Mich.; Zack Space, D-Ohio; Lee Terry, R-Neb; and Peter Welch, D-Vt., said that independent community pharmacies could incur significant financial losses if bid pricing were applied in retail settings.

AAHomecare in action
ARLINGTON, Va. - AAHomecare last week submitted 15 pages of comments to CMS on the 2011 Physician Fee Schedule Proposed Rule, which included provisions related to oxygen, power wheelchairs, diabetic supplies and competitive bidding. The comments and a summary of the HME-related provisions can be found in the "what's new section" at www.aahomecare.org. In other news, the association last week received clarification from the National Supplier Clearinghouse (NSC) on whether providers need to re-submit their 855-S forms when they renew their surety bonds. They do not, as long as their bonds are current.

Medtrade's new moves: Accessible home, competitive bidding track
ATLANTA - Nielsen Expositions will premier the "NexGen Medtrade Accessible Home: A Health Living Lifestyle Environment" at Medtrade Nov. 15-18. The 1,650-square-foot home, which will be built right on the show floor, will feature an array of HME products that demonstrate how homeowners can remain independent as they age or face chronic illness or disability. Tours will be available throughout the show. Nielsen has also added an education track on competitive bidding to the show's conference schedule. The track will include 11 sessions like "Now That You Have Signed the Contract, What Are Your Rights and Obligations" and "Buying and Selling a Supplier That Has Been Awarded a Contract."

CMS: When providers go bankrupt, we may pay for new equipment
BALTIMORE - CMS may make payment for replacement oxygen equipment in the event that a supplier files for Chapter 7 or 11 bankruptcy in a U.S. Bankruptcy Court, it announced in a bulletin last week. Read the complete bulletin at https://www.noridianmedicare.com/lsredir.php?pdf=/provider/updates/docs/MM6838.pdf.

Posted on 26 August 2010 | 11:00 pm

Accreditation update

Officials at accreditation organizations (AOs) are preparing for a wave of re-surveys that will need to be done in the fall of 2012 and HME providers should be doing the same.
In 2009, when Medicare began requiring that HME providers be accredited, AOs processed stacks and stacks of applications and scrambled to perform surveys. Because most AOs require that providers be re-surveyed every three years, in 2012, many of them will need to be re-surveyed.
"At least this time around we know what we're dealing with, so we can plan for it," said Mary Nicholas, executive director of HQAA, one of Medicare's 10 deemed AOs.
AOs are also preparing for a smaller wave of re-surveys next year. In 2008, Medicare took its first crack at competitive bidding and one of the requirements to participate in the program was accreditation. In 2011, many of the providers that became accredited to submit bids will need to be re-surveyed.
HQAA's preparations include scheduling re-surveys more efficiently. In 2009, that was nearly impossible because the AOs didn't know how many applications they would receive and, in turn, how many surveys they would need to perform, Nicholas said.
"Now we know, in advance, whose accreditation is due and their location," she said.
Some AOs may try to spread out their re-surveys.
"I think some of the accreditors are wondering: 'Can we give some kind of incentive to providers to apply for their re-surveys earlier," said Tom Cesar, president and CEO of ACHC, another deemed AO. "We'll definitely be looking at some kind of plan to encourage providers not to wait until the last minute to schedule their re-surveys, maybe even six or eight months in advance."
Providers can do themselves and the AOs a big favor by keeping up on the requirements for accreditation in between re-surveys.
"If, for example, QI hasn't been maintained, it ends up taking more time for the re-survey," Nicholas said.
Sandy Canally, president of The Compliance Team, a deemed AO that re-surveys its providers every year instead of every three years, says providers often aren't ready for their re-surveys.
"A lot of folks who made it through the deadline said, 'OK, now we can breathe a sigh of relief,' and dropped the ball," she said. "But this isn't a one-and-done deal. They went through this to improve their organization. That's where the focus needs to be placed."

Posted on 26 August 2010 | 11:00 pm

Scooter Store launches new branding strategy

NEW BRAUNFELS, Texas - The Scooter Store announced this week that it will be working with an integrated group of advertising and marketing agencies to "shape a new brand strategy" for the company.
"This plan will include a new campaign promoting the life-enriching benefits of power mobility solutions while motivating, inspiring, cultivating trust and more fully defining the company brand," The Scooter Store stated in a release. "It will also lower the cost of customer acquisition through a sharper focus on those with an acute need."
The Scooter Store has partnered with Omnicom Group, a strategic holding company that comprises advertising agencies like Zimmerman Partners and marketing agencies like Daggerwing Group, to work on the new strategy.
No stranger to advertising and marketing, the Scooter Store plans to shift away from the "fact-based messaging approach" it has used in the past to educate consumers and "generate a direct response."
"While highly effective, this approach did not leverage many of the benefits associated with power mobility and it alienated some stakeholders," the company stated in the release.
The Scooter Store has spent about $17 million in measured media in the first half of 2010 and about $45 million in each of the past two years, according to Adweek, an advertising newspaper.

Posted on 23 August 2010 | 11:00 pm