HME News

FEB 2018

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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■ Will managed care organizations follow Medicaid rates, asks Karyn Estrella. See story page 1. Subcontracting exacerbates bid problems . . . . . . . . . . . . . 3 Legal: Jeff Baird on subcontracting pitfalls . . . . . . . . . . . . 3 Medtrade Spring heats up . . . . . . . . . . . . . . . . . . . . . . . . . . 3 VGM rallies Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 News www.hme N ews.com / february 2018 / hme N ews 3 By Liz Beau L ieu, e ditor S ubcontracting may be black and white on paper, but in the real world, it can be gray, even now that competitive bidding has been the law of the land in major cities for years. b y law, contract suppliers are responsible for coordinating care between referral sources and m edicare beneficiaries, for example, but subcon- tractors say that's not always the case. " i t's kind of like the dirty, little secret in the industry," said a subcontractor for oxygen equip- ment and services. " t hey have virtually no contact with physicians—that's left to the local providers like us." b y law, contract suppliers must also furnish items and bill m edicare. t he job of the subcontractors: deliver, instruct and repair. Subcontractors are, in a way, enablers. t hey want to remain in contact with referral sources, because they still want their business for other product lines and other payers. "We want to save face with referral sources," said one subcontractor. "( t he contract suppliers) are so bad at processing claims, because they're so risk- averse, that we just do what needs to be done." o ne subcontractor says that one contract sup- plier has a policy of automatically canceling orders after three attempts to get documentation. "We've started working with referral sources a little more closely, just calling them ahead of time to give them a heads up," said the subcontractor, "to appease them and maintain the relationship." a dding insult to injury: While slow payments from contract suppliers haven't been an issue for all subcontractors, one subcontractor has invoices into one contract supplier that are over 120 days old. By Liz Beau L ieu, e ditor AMARILLO, Texas – Healthcare attorney Jeff b aird says no provider likes subcontract- ing agreements; neverthe- less, there are a large number of them out there. " b ecause reimburse- ment is so low, to take that reim- bursement and split it between two com- p a n i e s doesn't add up," he said. " i t's a lose-lose." b ut contract suppliers want Subcontracting exacerbates problems with bid program Ins, outs & uh-ohs I n s a n d o u t s s e e pa g e 4 s u b c O n T R A c T s s e e pa g e 4 Jeff Baird 'dirty, little secret' Briefs m edtrade s pring heats up, fall planning in progress LA s VEGA s – Early registration rates for Medtrade Spring ended Jan. 31. Early reg- istration rates were $50 for the Expo pass and $199 for the conference pass. Those rates have increased to $100 and $249, respectively. The Spring event is sched- uled for March 27-29 at the Mandalay Bay Convention Center in Las Vegas…Show organizers have put out a call for presenta- tions for Medtrade, Oct. 15-17 at the Geor- gia World Congress Center. They plan to emphasize panels again this year, but they will also select individual and co-presented sessions. Topics of interest include audits and compliance, competitive bidding, le- gal, retail/caretail, sales and marketing, strategic planning, business operations, executive leadership and Medicare up- dates. "We all know the more we work bet- ter together, the better the results," says Sarah Varner, marketing director. "Why not work together more as an industry?" Data and Security Compliance and Risk Tax Bill Implications and the Economy Mega Trends and Business Tips Download VGM's latest playbook - Industry Snapshots: Forecasting 2018 – and find out! VGM's thought leaders have composed a comprehensive guide that focuses on health care initiatives you should be prepared for in 2018. This FREE resource is full of relevant and forward- thinking information on hot topics like: What's on the health care horizon? Download your FREE playbook today! playbook.vgm.com

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