Home Health & Hospice Week

Supplier number suspensions rising. 

The feds promised to come down on fraudulent power wheelchair dealers like a ton of bricks, and they appear as good as their word. Unfortunately, legitimate suppliers are getting caught in the crush.

"We are getting calls every day" from Houston durable medical equipment suppliers who have had their supplier numbers "turned off," says attorney Jeff Baird with Brown & Fortunato in Amarillo, TX. The National Supplier Clearinghouse is making unannounced site visits to Houston suppliers and revoking or suspending their supplier numbers, Baird reports.

Many supplier numbers have been put "on hold" and suppliers don't know what their status is, says Glynda Turner with the Medical Equipment Suppliers Association, which covers Texas and three other states. Houston suppliers underwent mandatory training as required by the Centers for Medicare & Medicaid Services in mid-October, Turner adds.

And the fraud-fighting activity isn't restricted to just Texas. Attorney Gabe Imperato with Broad and Cassel in Ft. Lauderdale, FL says he knows of three separate U.S. Attorney and Department of Justice actions regarding power wheelchairs taking place across the nation. "The high-profile investigation in Houston started the ball rolling," notes Imperato, who declined to divulge the details.

Suppliers will find NSC revocation or suspension will be much more deadly than DOJ action in the short run, Baird expects. Whereas legal action can take months or years to culminate, the NSC can come in, immediately turn off the supplier number, "and put the burden back on the supplier to show it is entitled to that number," Baird explains.

The NSC's actions related to Operation Wheeler Dealer "are going to kill some retailers," and not all of them will be fraudulent or abusive, he predicts. "K0011 folks are going out of business."

And the nationwide supplier number freeze that applies to all suppliers, whether or not they plan on furnishing power wheelchairs, continues to harm some innocent DME bystanders (see Eli's HCW, Vol. XII, No. 36, p. 284). Normal supplier number issuances won't resume until Jan. 1.

Wheelchair dealers and other suppliers that see their supplier numbers suspended or revoked "must move as quickly as possible," Baird stresses. With no Medicare supplier number, no Medicare reimbursement can come in the door.

Those suppliers should take the following steps to avoid becoming one of the mounting casualties of Operation Wheeler Dealer: