HME News

JUN 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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Medicare Market Marker The eSolutions Denial Tracker SOURCE: ESOLUTIONS The eSolutions Denial Tracker is an index of the percentage of Medicare and commercial claims rejected on a monthly basis. The most recent month's data repre- sents an analysis of approximately 1,379,374 Medicare claims and 4,129,557 commer- cial claims adjudicated between March 1, 2018, and March 31, 2018. The index is a categorized and weighted analysis of claims fi led by eSolutions customers. HMENEWS.COM 6/17 7/17 9/17 12/17 3/17 3/18 2/18 10/17 8/17 11/17 1/18 4/17 5/17 Most viewed stories in April 1. CMS adds templates for RADs, PAPs and vents 2. Round 2019: Plenty of questions, still no answers 3. MAC takes more physical stance on manual wheelchairs 4. Compass Health gets aggressive 5. AAH on bid relief: 'We're not going away' 6. Parachute Health digitizes DME 7. Classic SleepCare expands 'Scope' *The Medicare Market Marker provides a monthly look at the number of Medicare benefi ciaries for whom the four MACs have allowed a claims payment. SOURCE: PDAC (number of allowed benefi ciaries) E 1 3 9 0 : O X Y G E N C O N C E N T R A T O R E 0 2 6 0 : S E M I - E L E C T R I C H O S P I T A L B E D (number of allowed benefi ciaries) E 0 6 0 1 : C P A P (number of allowed benefi ciaries) K 0 0 0 1 : S T A N D A R D W H E E L C H A I R (number of allowed benefi ciaries) (number of allowed benefi ciaries) K 0 8 2 3 : P O W E R W H E E L C H A I R * * HME NEWS POLL HMEDATABANK.COM The HME DataBank has the latest Medicare reimbursement data for the top 1,000 HME providers nationally in 103 key product cat- egories, as well as for all of the products in the NCB program. You can determine your market share, look for new product opportu- nities and check out your competition using the latest available Medicare data. Go to hmedatabank.com to learn more. data! data! **We are now tracking K0823 claims with certain modifi ers (NU, UE or RR/KH) to better refl ect the actual number of new allowed benefi ciaries under the 13-month capped rental. 2/17 11/17 10/17 12/17 1/17 3/17 4/17 8/17 9/17 5/17 6/17 7/17 "We only have the m o b i l i t y c o n t r a c t and have managed to make it some- w h a t p ro f i t a b l e . " —Lori Sears, Active Home Medical Supply, Lapeer, Mich. "We would decline the offer because with all the cuts that have been made, it's a big loser. You're lucky if you can make your costs back and just break even." — M e l o d y A m o s , Q u a l i t y Te a m , Bakersfi eld, Calif. 115,770 Region D 99,464 Region B 72,557 Region A 26,750 Region C 16,393 Region A 6,151 Region D Region B 13,420 Region B 53,569 Region D 72,221 Region C 108,823 Region A 47,227 281 Region B Region D 300 769 Region C Region A 145 45,652 Region C 17,837 Region B 14,949 Region D 19,586 Region A Month Percent denied Source: The Braff Group, 412-833-5733. The Braff Group M&A Insider Rehab 17, 19.6) DME (14.4, 16) Respiratory (10.8, 11.4) 2/17 11/17 10/17 12/17 1/17 3/17 4/17 8/17 9/17 5/17 6/17 7/17 2/17 11/17 10/17 12/17 1/17 3/17 4/17 8/17 9/17 5/17 6/17 7/17 2/17 11/17 10/17 12/17 1/17 3/17 4/17 8/17 9/17 5/17 6/17 7/17 NewsPoll based on 88 respondents. 203,759 Region C HME NEWS / JUNE 2018 / WWW.HMENEWS.COM Databank Do you think there is enough time to com- plete the bid process for Round 2019 by Jan. 1, 2019? 2/17 11/17 10/17 12/17 1/17 3/17 4/17 8/17 9/17 5/17 6/17 7/17 If CMS offered to temporarily extend your current contract for a certain period, would you accept or decline? 22 This month we return to our rolling 10-year lookback on deal trends in the HME industry to fi nd something we haven't seen since 2012—an increase in deal fl ow year-over-year. With 48 transactions identifi ed in 2017, mergers and acquisitions activity rose a healthy 23% over the 2016 tally of 39. So is it a harbinger of things to come? Or just a random rise amid what has otherwise been a steady decline? Hard to say. But we can say this: Although not enough to qualify as a groundswell, we are seeing signs portending increased interest in the home medical equipment sec- tor. Rising valuations. Stirrings from the private equity community. Belief that maybe, just maybe, there are no shoes left to drop when it comes to reimbursement. And even a bit of renewed optimism that the "Last Man Standing" strategy may fi nally —fi nally—begin to deliver on the promise of increased market clout. And with it, the chance to squeeze out even a few more basis points of profi tability. So is the sector on the verge of the kind of rebound we saw between 2008 and 2012? Probably not. But is there enough to be cautiously optimistic? Yup. C autiously.

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