Home Health & Hospice Week

Industry Notes:

DMERCs Compete Under New Reform Initiative

Will you get a new carrier?

The Centers for Medicare & Medicaid Services has launched its Medicare contractor reform initiative - and first up is durable medical equipment.

Under the Medicare Modernization Act, CMS must conduct full and open competitions for new Medicare Administrative Contractors, which will perform the work now being handled by fiscal intermediaries and carriers in Medicare's fee-for-service program.

The agency says it chose to start with DME because the workload of the four existing DME regional carriers is stable, minimizing the risk of disruption to beneficiaries and providers.

CMS plans to release a Request for Information inviting the industry and other interested parties to share comments, questions and concerns about the pro-cess. Originally scheduled for release Feb. 1, the RFI was delayed for "technical reasons," a CMS source says.

The agency also plans to hold an Open Door Forum for additional discussion before developing a formal Request for Proposal. More information about the contracting reform process is at
www.cms.hhs.gov/medicarereform/contractingreform.

 

  • The Senate swore in former Utah governor Michael O. Leavitt as the new Secretary of the Department of Health and Human Services Jan. 26, following the Finance Committee's approval the day before.

    Speaking before a voice vote, Finance chair Chuck Grassley (R-IA) reminded the Senate that the Medicare drug benefit and pay for performance were going to be challenging priorities.

    In one of his first speeches as HHS Secretary, Leavitt suggested home care as a way to rein in Medi-caid spending, reports the National Association for Home Care & Hospice.
     
  • Don't hold your breath for CMS to announce new oxygen rates, as the agency still has no idea when that they will be set, staff reported during the Jan. 25 Open Door Forum for home care providers. MMA-mandated payment cuts have been delayed while the HHS Office of Inspector General finalizes Federal Employee Health Benefit Plan data used to calculate the reductions (see Eli's HCW, Vol. XIV, No 3, p. 19).

    "There's no point in drawing a line and saying some arbitrary date," a CMS official said in the forum. "As soon as they can finalize the data, we will implement it."
     
  • Federal agents raided the offices of a Florida home oxygen provider last month shortly after Clearwater-based Lincare Holdings Inc.acquired it, the St. Petersburg Times reports.

    Agents with the Federal Bureau of Investigation searched five offices owned by Bane Medical Services Inc. and seized various documents, according to the paper. Bane Medical is based in Plant City, FL and has offices in Bradenton, Port Charlotte, Sebring and Sarasota. Owner Ben Bane ran the business until December, when Lincare acquired it for an undisclosed amount.
     
     
  • Regional powerhouse Amedisys Inc. has purchased more home health agencies from South Carolina-based Winyah Health Care Group. Amedisys acquired "several" operations from Winyah in the certificate of need state, it says.

    The company expects the acquisitions to contribute $16 million to $17 million in revenues annually. The purchase price included $13 million in cash, a $2 million note payable over two years and about $1.5 million of Amedisys stock.

    Last October, Amedisys purchased two HHAs from Winyah (see Eli's HCW, Vol. XIII, No. 36).
     
  • Two hospital-based Ohio HHAs are set to merge. CareView Home Health in Middletown and Fidelity Health Care in Dayton will combine forces under the Fidelity name, reports the Middletown Journal. Details of the merger, including what will happen to existing employees, are unclear, execs say.

    After a recent hospital merger, the HHAs were owned by the same parent company, the Journal says. Declining revenues contributed to the move.
     
  • Tennessee regulators have approved a certificate of need for a proposed Nashville hospice that will cater to the African-American population, reports the Nashville Business Journal. Mahogany Hospice Care Inc. obtained the CON in the face of opposition from area hospices who said another hospice provider wasn't needed (see Eli's HCW, Vol. XIV, No. 2). 
     
  • Long-term care giant Manor Care Inc. saw its hospice revenues increase 25 percent over the last year, the Toledo, OH-based company says in its latest earnings report. Manor Care increased the number of its hospice and home care operations from 89 in the quarter ended Dec. 31, 2003 to 97 in the same quarter of 2004.

  •  Oxygen giant Praxair Inc. reported a net income of $181 million on sales of $1.8 billion in the fourth quarter of 2004, an increase of 17 percent over the $155 million income it reported in the year-earlier period.