Posts from — March 2007

Its official - CMS (Medicare - Medicaid) have gone public with a website to provide further information on National Competitive Bidding (NCB).

This is yet another indication that NCB is coming sooner rather than later.

Of particular interest is this statement “CMS has not set a deadline for DMEPOS suppliers to become accredited in order to retain/obtain a supplier enrollment number or to competitively bid”…

Here is the site:

http://www.cms.hhs.gov/competitiveacqfordmepos/

Here is a related site providing further detailed information on implementation. (Work in progress).

http://www.dmecompetitivebid.com/

(For non US companies this provides useful insights into the US market - It is worthwhile clicking on the links).

As a brief follow - up to the post on this subject this week, we can now confirm that Invacare, Meyra and Handicare will not be attending this years Rehacare.

This is the first time in the history of this show that Invacare and Meyra have not attended.

No doubt the empty space will be used by others - most notably Asia manufacturers.

The reshaping of the industry continues…

Following shortly on the heels of Sunrise CEO Mike Hammes statement that Sunrise was focusing resources elsewhere in terms of the traditional Medtrade “Spring” show, significant rumor abounds in Europe this week that some “big” companies are seriously considering their options to exhibit at Rehacare - traditionally the largest rehab exhibition outside of the US.

Last year (2006) especially, as far as I can see, was the year where industry heavyweights invested heavily in Medtrade hoping to gain a competitive advantage in the looming reimbursement and NCB challenged marketplace. An additional observation however is that most of the companies chose to address the typical “new improved product” strategy instead of addressing the needs of the new order marketplace. There were of course some notable exceptions.

Then came RehaCare - same thing, except US companies flocked to the show either for the first time or with bigger exhibition booths, hoping for geographic sales (and profits..) expansion - not understanding that the rules of engagement in Europe have also changed. In fact the biggest market outside the US, Germany has announced changes that make the new order US look like a Sunday school picnic.

There are still great opportunities for the homecare / mobility /rehab industry - just don’t look at what has always worked in the past.

Three great end user customer driven companies have now formed an alliance (First Alliance) to better serve customers and to make sure they stay focused on end user needs in time of reimbursement cuts and a scramble by the industry in general to focus most of their activities on operational efficiency.

Both are clearly needed, but readers here will note that we have been long term advocates on close end user programs - why - because we have watched them pay off bothin the US and Europe for the last year or so - despite pricing pressure.

“Manufacturing Trio Forms Users First Alliance
ATLANTA–Three rehabilitation industry heavyweights have banded together to form an alliance aimed at ensuring that end-users get quality rehab products suited to their needs and not just the government’s pocketbook.

Permobil of Lebanon, Tenn., The Roho Group of Belleville, Ill., and TiLite of Kennewick, Wash., have formed the Users First Alliance.

“With so much focus on declining reimbursement and the resulting financial implications to providers and manufacturers, the industry seems to be losing sight of the most important component of our business–the consumer,” said Tom Borcherding, Roho executive vice president. “The founding members of the Users First Alliance believe that consumers and clinicians should expect more than the equipment that is considered just ‘good enough.’”

“Push for More” is the group’s motto, and that is what Users First will attempt to do through education of clinicians, providers and end-users, the manufacturers said.

Noting that only a handful of wheelchair users currently have access to state-of-the-art technology that offers not only expanded freedom, but health benefits, David Lippes, chairman and CEO of TiLite, noted: “During the equipment selection process, wheelchair users should not sacrifice equipment performance or medical outcomes based upon apparent reimbursement limitations. We can help.”

The alliance aims to do that through educating users, clinicians and providers about the selection process for rehab equipment; emphasizing the direct relationship of equipment quality and performance to long-term medical outcomes; providing information about insurance coding and reimbursement solutions; and guiding users, clinicians and providers through the reimbursement process to “help ensure accessibility of and appropriate reimbursement for this equipment,” the companies said.

The three companies also will offer continuing education opportunities in their individual areas of expertise”.

Source Homecaremag.

Invacare, struggling, like several of its competitors with reimbursement, Asian sourcing pressure and cost issues has just announced that it has appointed General James L. Jones, United States Marine Corps (ret.) to its board. General Jones has recently retired as Supreme Allied Commander of NATO (North Atlantic Treaty Organization) and Commander of the United States European Command.

This should raise the profile of the company and perhaps the industry as it goes about restructuring and aligning with the new order healthcare environment.

Mal Mixon, CEO at Invacare, also served as an officer in the US Marines.

Press Release