Home Health & Hospice Week

Competitive Bidding:

COMPETITIVE BIDDING MAY BE CLOSER THAN YOU THINK

There's no final rule--but no time to waste.

If your wares include durable medical equipment, prosthetics, orthotics or supplies (DMEPOS), don't make the mistake of thinking time is on your side.

The feds only recently issued the final quality standards, paving the way for accreditation--the biggest competitive bidding prerequisite--in August. And suppliers are still waiting for a federal final rule on competitive bidding.

Reality check: But despite those delays, experts say suppliers should be thinking "Full speed ahead."

"If you're in one of the top 25 [Metropolitan Statistical Areas], you should be actively pursuing accreditation and preparing for the new market realities," said Maryellen Conway, president of Capital Healthcare Group in Bethesda, MD. Prepare Now For New Market The fact that the Centers for Medicare & Medicaid Services has yet to publish a final rule regarding competitive bidding creates an illusion that there's more time to prepare than there actually is, said Conway, speaking during an audioconference sponsored by the American Association for Homecare on Dec. 18.

Wake-up call: The Medicare Modernization Act of 2003 states that "all DME providers billing Medicare for identified Part B products must be accredited by 2007," Conway reminded conference listeners.

That doesn't mean you'll be dropped from Medicare on Jan. 1 if you aren't accredited, of course. But CMS is bound by statute to get competitive bidding rolling in 2007. And if you happen to be in one of the MSAs to be included in the first round of bidding, you will have to be accredited--or close to it--in order to submit a bid and "compete" for business, said Conway.

Expect the unexpected: Because there's no final rule spelling out the particulars of competitive bidding--such as how many MSAs will be included in the first phase--suppliers should plan accordingly with contingencies in mind.

What if your MSA is one of the first chosen, asked Conway. "You have to ask yourself now, 'Will I be ready?'"

Note: Information about the teleconference is at www.aahomecare.org.
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