Home Health & Hospice Week

Rotech Wins Bids, Lincare Does Not

One of the 364 suppliers offered contracts under DME competitive bidding is Rotech Healthcare Inc. Orlando-based Rotech has accepted 17 bid contracts for oxygen in six metropolitan statistical areas (MSAs), enteral nutrition in six MSAs, continuous positive airway pressure devices and respiratory assist devices in three MSAs, and power wheelchairs and scooters in two MSAs, the company says in a release.

The bid rates will slash $900,000 from Rotech's oxygen reimbursement in the first quarter of 2011, the company estimates. "We believe, however, that our market share gains in the cities where we were awarded contracts will more than offset the reductions in reimbursement rates over time," CEO Philip Carter says in the release.

CMS will continue the bidding contract award process until September, offering contracts to new suppliers if the initial awardees turn them down, the agency says in a fact sheet about the program. "Bidders that are not offered contracts will be notified of the reasons why they did not qualify for the program when the contracting process is complete," CMS adds.

On the other hand: Oxygen powerhouse Lincare Holdings Inc. doesn't appear to be an initial bid winner, according to the Tampa Bay Business Journal.

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