The quick read:

1. Medicare reduces reimbursement about 35% November 15
2. CMS spokesperson Ellen Griffith said “Medicare was paying for the equipment at a much higher rate than what it was being sold for on the market”
3. Cara Bachenheimer — vice president of government affairs for Invacare, the largest U.S. manufacturer of power wheelchairs — said, “Most suppliers do not have the kind of margins to sustain these cuts.”
4. Jim Greatorex — president of Black Bear Medical, the largest supplier of home medical equipment in the Northeast — said, “These prices are just absurd. This policy change is motivated strictly by saving money and does not take into effect the devastating effect it will have on the consumer, supplier or manufacturer”

[Read more →]

Following on from the report yesterday on the new dramatic cut in CMS reimbursement for power chairs: More Bad News For The Powered Wheelchair Industry AND The Powered Wheelchair Consumer

RAMP - Restore Access to Mobility Partnership issued the following statement:

Huge Cuts in Medicare Mobility Equipment Prices Will Restrict Access for Medicare Beneficiaries (US Newswire)

“Reimbursement Cuts of 21 Percent to 41 Percent Will Force Lay-offs, Put Suppliers Out of Business”.

The point from my perspective is the impact of access to critical healthcare for consumers. There is no doubt that irrespective of layoffs etc, this is is huge blow to people who often need help with this life supporting and enhancing technology the most.
[Read more →]

Just last week RAMP - Restore Access to Mobility Partnership - who’s members comprise American Association for Homecare; Invacare Corporation; the MED Group; Mobility Products Unlimited, LLC; and Pride Mobility issued a press release stating among other things

RAMP welcomes the additional assurances from CMS that down-coding will not occur, but we emphasize that several policy revisions are still necessary, and the industry must thoroughly evaluate the yet-to-be released pricing information for the new policy and process to be successful.

Industry heavyweight Mal Mixon CEO of Invacare was quoted as saying “We have made progress…CMS has engaged in a constructive dialogue with stakeholders”, while Dan Meuser, President of Pride USA was quoted “The resolution of this issue exemplifies what can be accomplished when CMS and stakeholders work together”.

Also last week - Mike Hammes - CEO of Sunrise Medical, in an editorial in HME News entitled - Sunrise CEO tells providers to ‘face reality’ - went on to appeal to homecare providers to enlist the support base of consumers in opposing unreasonable CMS plans.

Well it seems the the glimmer of optimism was somewhat short lived. [Read more →]

Times Leader | 09/15/2006 | New Medicare wheelchair plan could hurt Pride

Pennsylvania’s two U.S. senators and two local congressmen want to delay new, stricter Medicare policies they say might deny the elderly and disabled access to power wheelchairs. The new policies could also hurt wheelchair manufacturer Pride Mobility Products Corp., one of Luzerne County’s largest employers and the source of more than $57,000 in campaign cash for the four federal legislators.

Pride is not the only company hurting.

In related news with the upcoming Medtrade - Mal Mixon - Invacare CEO, in one of the pre show promotional emails says

The Rehab industry faces unique challenges in this new world of reimbursement changes. With ongoing cuts in reimbursement, 64 new wheelchair codes still without pricing, and competitive bidding on the horizon, Rehab providers are faced with a difficult question: How can I continue to provide clinical efficacy, yet at the same time maintain my bottom line?

Invacare will be introducing new power wheelchair electronics according to the statement.

Sunrise Medical will also be introducing their new Groove Power line.

Permobil - innovative Scandinavian company is promising to introduce its “Evolution” and goes on to discuss the impact of reimbursement changes.

Bottom line is despite / or as a result of the reimbursement changes - the industry is putting out strong messages of new products and innovations. Let’s hope both that both shareholders and consumers are going to benefit equitably.