HME News

APR 2017

HME News is the monthly business newspaper for home medical equipment providers. This controlled circulation publication reaches 17,100 home medical equipment services providers, including traditional HME dealers & suppliers, hospital- and pharmacy-o

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■ John Teevan, president and CEO of Home Care Medical, retires. See brief this page. CareCentrix revamps prior auths for 02 . . . . . . . . . . . . . . . 1 Providers hold off prep for 2019 . . . . . . . . . . . . . . . . . . . . . 12 Q&A: Todd Usher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Remote monitoring market grows 44% . . . . . . . . . . . . . . 13 Briefs Changes at top for Home Care Medical NEW BERLIN, Wis. – John Teevan, president and CEO of Home Care Medical, plans to retire April 1 from the role he's held since 1990. Kandette Raether, current vice presi- dent of sales and marketing, will assume the role of interim president March 1. Dur- ing Teevan's tenure, Home Care Medical has enjoyed substantial organizational growth, financial stability and industry rec- ognition. It was named the WAMES Pro- vider of Year in 2014, 2013 and 2012. "It has been an honor to lead this great com- pany with its 43-year legacy of enhancing the lives of those we serve," said Teevan in a press release. "As Kandette takes the helm, I am confident that Home Care Medical will continue to build upon our strong foundation of serving our referrals, our customers and the community. Hospice Cloud bulks up with Genesis Healthcare ATLANTA and RICHLAND HILLS, Texas – Gen- esis Healthcare Services and Hospice Cloud, two providers of HME to hospice organizations, have merged, company of- ficials announced Feb. 23. The acquisi- tion of Atlanta-based Genesis Healthcare helps Richland Hills, Texas-based Hospice Cloud, which owns and operates 60 ser- vice centers and has partnerships with more than 200 HME providers, maintain its position as a "market leader" provid- ing HME for the hospice industry. Genesis Healthcare represents the third major ac- quisition in a little over a year for Hospice Cloud. Hospice Cloud, a management platform and network for providers offer- ing HME to the hospice industry, is the brainchild of National HME, a provider of HME to hospice organizations in the Dal- las Forth Worth area. Tailwind Capital, a growth oriented middle-market private eq- uity firm, is the lead investor in National HME and Hospice Cloud. Market for respiratory devices to hit $21.3B PORTLAND, Ore. – The global respiratory care device market was valued at $12.8 billion in 2015 and is projected to value $21.3 billion by 2022, according to a re- port published by Allied Market Research in February. That represents a CAGR of 7.4% from 2016 to 2022. Dominating the market, according to the report: the thera- peutic segment, which accounted for more than half of the total market share in 2015. "The global respiratory care devices mar- ket is driven by factors such as increase in prevalence of respiratory diseases, rapid urbanization, rise in pollution level, growth in geriatric population, and increase in tobacco consumption worldwide," the report states. North America dominates the market, according to the report, and it's expected to maintain that stronghold due to the high adoption rate of respira- tory devices. 12 HM e news / April 2017 / www. HM enews. C o M p roviders By Theresa Flaher T y, Managing e ditor YARMOUTH, Maine – With Round 2019 of the competitive bidding program on hold indef- initely, providers like Woody O'Neal say they're holding off doing any prep work for submitting bids. "I don't think we will even spend any man hours on it until something official is announced, said O'Neal, vice president of O2 Neal Medical in Pelham, Ala. "It could change significantly or not happen at all, and I'd rather not spend staff time on it at this point." When and if Round 2019 does go forward, CMS has implemented several changes that could vastly improve the program, provid- ers say. For provider Steve Ackerman, a new requirement that bidders obtain a $50,000 surety bond for each CBA in which they sub- mit bids will force the hand of providers to really assess whether or not they can actually service a contract for what they bid. "First of all they are going to be assessed by the insurance company as to whether or not they can actually deliver services," said Ack- erman, owner of Spectrum Medical in Silver Spring, Md. "Nobody will take a chance on losing a bond with speculative bidding. The lesson in this round is, you are in the game or you are not." The flip side of requiring surety bonds is it could prevent smaller companies from bid- ding, says provider Chris Rice. "For smaller providers that are operating in multiple areas, you now have to show X many dollars of equity to be able to get those bonds," said Rice, the CEO of Diamond Respiratory in Riverside, Calif. Providers also have their fingers crossed that the downward spiral in pricing may finally be stopped. In a sign that even CMS knows the bid rates have become unsustain- able, the agency has moved the bid ceiling to 2015 fee schedule amounts. Still, "we might see a bit of a bump there, but I don't think we are going to see a pro- found change reimbursement wise," said Rice. hme By Theresa Flaher T y, Managing e ditor LAS VEGAS – When Erik Mickel- son launched the HME division of his family's pharmacy busi- ness, it took nine months for him to make his first HME sale. "I worked my tail off," the CEO of Howard's Medical Sup- ply told Medtrade attendees during the session, "Success Stories in HME: How Provid- ers have grown in the Face of By Theresa Flaher T y, Managing e ditor T HE CORNERSTONE of Home Oxygen Company is its non- delivery model, says co-found- er Todd Usher. The M o d e s t o , C a l i f . - based provider start- ed out as an oxygen provider in 2007 and has grown to include a full line of home medical equipment and supplies. W h i l e h e s a y s business is challenging in the face of reimbursement cuts—three of his local competitors have closed or are about to close thanks to the roll out of bid pricing in rural areas—his busi- ness model helps him hang in there. "We don't get paid for delivering walkers," said Usher. "They took our service money. Medicare is satisfied with that. As long as we can prove they got it, prove we gave the edu- cation, and prove the signatures are there, then we are golden." U s h e r s p o k e w i t h H M E N e w s r e c e n t l y a b o u t w h y h e w i s h e s all providers would embrace the Round 2019 improves process, but providers say they'll wait and see Non- delivery delivers results Good citizen Binson's Medical Equipment and Supplies in February received the 2017 Corporate Citizen Award as part of the Macomb Business Awards. The Center Line, Mich.-based provider has a long history of community involvement. Bob Binson, left, accepted the award from Mark Hackel, county executive of Macomb County, Mich. Want to succeed? Embrace failure providers sound off a Declining Industry." "No one told me how to do it. We almost ran into the ground twice." But in the last three or four years, the company has grown 300%, thanks in no small part to a willingness to make the tough decision to outsource billing, he says. "I am very against outsourc- ing," said Mickelson. "I'm a believer in everything local, but outsourcing allows us to scale." Outsourcing certain jobs plays a role in Home Care Delivered's success too, says Chairman Gordy Fox. He'd pre- fer to focus on creating good- paying jobs for his employees and outsource lower-paying roles. "There are minimum wage discussions in Washington, D.C.," he said. "Our folks should make more than that. If there's a $10-an-hour role, we want to get rid of that." s t A y on top of B illin G Like most HME providers these days, getting paid is a chal- lenge, for both Fox and Mick- elson. When you're frustrated, it's important to remember that payer reps are people, too, says Fox. "Take the emotions out of it and stick to just the facts," he U S H E R S E E n E x T p A g E S U C C E S S S E E n E x T p A g E Provider Todd Usher says technology and a non- delivery model have given him a 'fighting chance' in the face of reimbursement cuts Todd Usher

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