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| A Primedia Property | |
| April 18, 2005 | Volume 11, Issue 14 |
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ADVERTISEMENT Short to Tall, Big to Small, TFI has it all. Just some examples are walkers that accommodate individuals up to 650 lbs, a bariatric trapeze boasting a weight capacity of 800 lbs and much more. Visit us at www.tfihealthcare.com/hcmonday.htm For more industry news, features and highlights from our latest issue, please visit our Web site at http://www.homecaremag.com. Headline News AAHomecare Launches Oxygen Utilization Data Repository ALEXANDRIA, Va.--The American Association for Homecare's HME/Respiratory Therapy Advisory Council is collecting data about what kind of oxygen systems patients use to help draw a better picture of home oxygen utilization nationwide. According to Council Chairman Jeff Wills of Oklahoma City-based CV Solutions, the association's "ultimate goal is to be able to prove the utilization of products and services to CMS and other bodies." In recent months, a debate over access to portable oxygen systems has grown in respiratory circles. The National Association for Medical Direction of Respiratory Care has questioned Medicare's current modality-neutral reimbursement--that is, reimbursement that does not differentiate liquid oxygen from other systems--and has circulated a draft position paper on the subject among its board. Some have said modality-specific reimbursement, which would separate liquid oxygen, could be a more appropriate reimbursement model. Earlier this year, AAHomecare announced that, as one of its priorities for 2005, it would work to preserve Medicare's current payment methodology. But NAMDRC has contended the reimbursement model may hinder access to portable liquid systems, which it says generally bring less provider profits than bulkier systems. Other stakeholders, though, say the present method has not created any access problems--particularly considering the increasing sales of home oxygen filling systems, which allow users to fill portable units themselves. "If the reimbursement for an E cylinder is the same amount as for a $2,000 to $3,000 widget, it's not hard to understand [why] some patients [have] E cylinders instead of $2,000 widgets that might be more medically appropriate," said NAMDRC Executive Director Phil Porte. "It's understandable that [a provider] would invest hundreds of dollars rather than thousands of dollars to get the same amount of money. That's capitalism." Porte added, however, that "there are certainly complex issues involved with modality-specific [reimbursements]. How do you stop the pendulum from going to solely and singularly the $2,000 and $3,000 widgets?" In other words, some observers say, modality-specific reimbursement could spawn over-utilization of more expensive liquid systems. Wills explained that AAHomecare's effort to collect data on oxygen use is "not specifically being gathered for [NAMDRC]," but for use by regulatory bodies and various industry and clinical groups. "We saw the need from an HME and respiratory therapy standpoint to begin to collect data to show what the accessibility for portable oxygen really is," Wills said, "and we're in the process right now of doing just that." He added the association hopes to partner with industry buying groups this summer to gather data from non-association members as well, and to have "a good sampling of data" by the fall. NSC Offers Guidance on Diabetic Shoes COLUMBIA, S.C.--The National Supplier Clearinghouse offered at least some partial insight last week as to who would constitute a "qualified individual" to sell diabetic footwear. The issue was raised last year when the NSC posted on its Web site--then quickly retracted--instructions that would have required diabetic shoes to be furnished by a podiatrist or other individual with similar training. In its April newsletter, the NSC said it would allow providers to sell diabetic shoes if they could show "some type of training." The newsletter added that the Social Security Act states: "The shoes must be fitted and furnished by a podiatrist or other qualified individual (such as a pedorthist or orthotist, as established by the Secretary) ...." NSC Director Nancy Parker said that CMS has yet to define who would constitute a "qualified individual." In the interim, she explained, the agency has instructed the NSC to "allow suppliers to provide diabetic footwear as long as the supplier can illustrate some type of training has been received." Parker said some examples of what the NSC has been accepting as proof of training include: --licensed physical or occupational therapist Parker added, however, that "the NSC will not accept this training in lieu of any state licensure requirements." The NSC's monthly newsletter is posted on its Web site, available by clicking here. CMS Contracts with Fox Systems for NPI Processing BALTIMORE--CMS has selected Scottsdale, Ariz.-based Fox Systems Inc. as the contractor to support the implementation of standard unique health care provider identification numbers. Fox will process applications from health care providers and operate a help desk to assist them in getting the new National Provider Identifier numbers. Adopting the NPI is the latest step in implementing the administrative simplification provisions mandated by the Health Insurance Portability and Accountability Act. It's a new numbering system that will replace all legacy identifiers currently being used. All providers affected by HIPAA must obtain an NPI, according to CMS. The compliance date is May 23, 2007, and the following year for small health plans. The assignment of NPIs will begin later this year. For now, providers do not need to take any action to apply for NPIs, CMS explained, adding that it will make an announcement when the agency is ready to take applications. For more information on NPIs, visit the CMS Web site by clicking here. AAHomecare is urging support for proposed legislation that would establish a bipartisan commission on Medicaid reform. The commission would review and make recommendations with respect to Medicaid's major functions, delineation of federal and state roles, the program's long-term financial condition, matching payments, dual eligibility and health care disparities. To view the bills, H.R. 985 and S. 338, visit the government's legislative Web portal at http://thomas.loc.gov. For more on the amendment, see the lead story in the March 21 HomeCare Monday by clicking here. Are You Ready HIPAA's Security Rule? The deadline for the Health Insurance Portability and Accountability Act Security Rule is Wednesday, April 20. For more information, visit the CMS Web site by clicking here. To revisit this news any time during the week, go to http://www.homecaremonday.com. Provider News Associated Healthcare Systems Restructures Management AMHERST, N.Y.--The founder of Associated Healthcare Systems will be stepping back from day-to-day operations at the respiratory company, which has grown to nine branches since its opening in 1983. Donald B. White, CEO of the $17 million HME, handed the reins last week to Peter Storey, who has been promoted from COO to president. Liz Woolrich has been promoted to vice president of corporate development, and Arletta Samulak has been promoted from controller to CFO. "I'll still be involved in the business. I'm not retiring, just taking a little different focus," White said, explaining that he will have more involvement "in setting strategy and reviewing opportunity," including future growth and acquisitions. Part of that strategy, he said, will be sales development that will include a new referral program with area hospitals to generate business, which is "especially [important] in the wake of lost revenues in the respiratory medication arena." A longtime home care advocate and 2004 HomeCaring Award recipient, White served as the first chairman of the newly formed American Association for Homecare in 2001. He also played a key role in establishing two state organizations--the Medical Equipment Dealers Association of Western New York and the New York Medical Equipment Providers Association, of which he served as an early chairman. FBI Raids Scooter Superstore LINCOLN, Neb.--FBI agents raided the Lincoln branch of Midwest regional provider the Scooter Superstore, an FBI spokesman confirmed to HomeCare Monday. Agents entered the premises late last month with "what we call a records-search warrant. Nobody has been charged or arrested in this case," according to Jeff Taerpinan of the Bureau's Omaha office. The raid was part of an ongoing investigation involving personnel from the FBI, the HHS Office of Inspector General and the IRS, Taerpinan added, although because the investigation is still open, he could not disclose further details. Earlier this year, the Scooter Superstore announced it would open branches in several Nebraska Wal-Mart Supercenters under an agreement with Boston-based Companion Health Services, which has a master lease arrangement with the giant discounter. But last week, Cozad, Neb.-based Frontier Home Medical opened a branch in the Lincoln Wal-Mart where the Scooter Superstore had been scheduled to open on April 1. Scooter Superstore representatives did not return phone calls. Lincare Acquires Assets of Home Oxygen 2-U CLEARWATER, Fla.--Respiratory giant Lincare has acquired certain assets of Home Oxygen 2-U, a Lincare spokesman confirmed last week. According to the Lawrence, Kan., Journal-World, about 70 employees at Home Oxygen's call center in Lawrence were laid off, though workers were told that Lincare may have new positions opening up during the next several months. Home Oxygen 2-U--launched by Bill Kennedy, who founded Rotech Healthcare and later sold it in 1997--has drawn revenue from direct-to-consumer cable TV advertisements offering home oxygen filling systems, the newspaper reported. In other news, Lincare has announced plans to open a billing center in North Sioux City, Iowa, that could eventually employ up to 40 people, the Sioux City Journal reported. Lincare officials had no further comment on either transaction. Manufacturer News CareCentric Announces Expansion Plans ATLANTA--CareCentric has announced strategies for company expansion that include a patient-centered approach to software development and outsourcing solutions. At Medtrade Spring, the technology and software developer, which offers the MestaMed, Dezine and STAT 2 systems, introduced its Internet-based management tool called Ac-Cura, with plans to roll out a beta version in July and the full-blown platform by the fall. The system is designed to be "patient-centric," organizing various documentation around one or more business lines, including HME, home health and hospice, said Mike McGuire, senior vice president of sales and marketing. The system can be customized based on size and type of business, level of technology and budget, and offers online claims management, built-in payer authorization and automated missing-data checks. McGuire added that integrated data entry makes information available throughout the system "with no need for duplicate entry." Ac-Cura will streamline what remains, according to McGuire, "a real stumbling block in most of health care"--poor cash flow. "Rendering a service and getting paid for that service" is problematic for most home care companies, he said. By opening the flow of information throughout the continuum of care, the new HME module should accelerate the pace of cash throughout the system as well. McGuire also said that CareCentric hopes to acquire a billing company within the next 60 to 90 days and plans to integrate, through a business partnership, an electronic CMN solution into its new Internet-based management software. The company also announced a corporate re-branding strategy at the show. "Everyone knows MestaMed," said McGuire, but they may not know CareCentric makes the software platform. Chad Wins Design Award CHATSWORTH, Calif.--Chad Therapeutics has won a 2005 Medical Design Excellence Award for its Sage Oxygen Therapeutic Device. Presented by Cannon Communications, the awards recognize contributions and advances in the design of medical products. The Sage device, introduced in April 2004, is an oxygen conserver that can automatically adjust oxygen flow based on the patient's activity level. "We feel that the Sage device offers significant benefits for the patient and represents a shift back to patient-centric solutions in medical devices," said Chad President and CEO Earl Yager. Invacare Forms Specialty Products Group ELYRIA, Ohio--Invacare Corp. has formed a group to serve as the umbrella organization for a number of specialty product lines. The Helixx Group will include Freedom Designs, Kuschall North America and Motion Concepts. Invacare's PinDot brand will also be aligned with the new entity. All lines unified under the group serve the rehab sector: Freedom Designs offers wheelchairs and seating and positioning products; Kuschall manufacturers ultra-light wheelchairs; Motion Concepts focuses on seating and positioning; and PinDot offers custom seating. Chris Yessayan has been appointed vice president and general manager of The Helixx Group, and will report directly to Lou Slangen, Invacare's senior vice president of global market development. Previously, Yessayan served as vice president and general manager of the Radiation Measurement and Protection Unit at Santa Fe, N.M.-based Thermo Electron Corp. "Establishing The Helixx Group as the overall unifying entity for Freedom Designs, Kuschall, Motion and PinDot is part of Invacare's overall strategy to keep these specialty product line companies distinct and separate from the Invacare brand," Slangen said, adding that retaining their unique identities allows the companies "to focus on what they do best, which is what propelled each company and brand to a premier position in their segment." Pride Mobility Launches GoGoVille.com EXETER, Pa.--Pride Mobility Products Corp. has launched GoGoVille.com, an interactive Web site that uses a virtual town to give consumers information about its Go-Go travel mobility products. "Mayor" Ed McMahon, the company's spokesman, guides visitors through GoGo-Ville as they explore various buildings in the village--from the virtual museum, where they can read about the products, to the virtual game room, where they can play games based on the Go-Go line. The GoGo-Ville drive-in features instructional videos, while the local radio station plays the Go-Go jingle. Other site features include a virtual showroom and a locator where visitors can find a provider in their area. SecureCare Teams with MedForce AUSTIN, Texas--SecureCare Technologies, an Internet-based document exchange and e-signature company, has announced its collaboration with New York-based MedForce Technologies to develop an integrated module that will provide a paperless solution for DME/HME clients. According to Dennis J. Nasto, SecureCare's senior vice president of sales and marketing, "The combined solution will enable the DME and HME providers to become more efficient by reducing days sales outstanding to improve profitability," and will also expand the company's reach into the home care market. "Our integrated solution will allow a paperless document exchange between DME/HMEs and physicians, which will significantly enhance efficiencies within the health care system," said MedForce CEO Esther Apter, adding that customers "will be able to send CMNs and doctors' orders directly to physicians via their computer rather than using costly mail or hand delivery." Former AAH Council Chair Launches Unitas Software Firm EASTHAMPTON, Mass.--The former AAHomecare Rehab and Assistive Technology Council Chairman has moved from the provider side to the vendor side, launching Unitas, a new company offering Web-based referral and billing solutions tailored for the rehab and oxygen fields. Company founder Matthew Burke, who describes himself as a "homegrown computer geek," said he had been tinkering with Web-based back-office solutions for years as director of operations at Burke Home Medical Equipment in Chicopee, Mass. Last November, he decided to take those solutions "to the next level" by forming his own company, which launched last month. The company made its first appearance at Medtrade Spring, sharing booth space with The VGM Group. The buying group has offered Unitas secure space on its data servers in Waterloo, Iowa. With the launch, Burke resigned as AAHomecare Rehab Council chairman. The association said it will announce a new Council chair before its Leadership Conference in June. Coming Up CMS will hold its next Home Health, Hospice and DME Open Door Forum April 21 at 2 p.m. EST at the agency's Washington, D.C., offices. To participate by phone, call (800) 837-1935 and reference Conference ID 4882728. Essentially Women will hold its Focus on the Future Conference and Trade Show May 2-4 in Lexington, Ky. For more information, visit www.essentiallywomen.com or call (800) 988-4484. The South Carolina Medical Equipment Services Association (SCMESA) will hold its annual convention May 5-7 in North Myrtle Beach, S.C. For more information, visit www.scmesa.com or call (803) 731-9216. ADVERTISEMENT Visit this week's sponsor at www.tfihealthcare.com/hcmonday. |
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