On the OPINION page in the Wall Street Journal (issue date 02/06/12) I saw an answer to the Medicare competitive bid program.
Normally a competitive bid is awarded to the lowest bidder. Other than that, why go through the motions? The Medicare competitive bid program “winners” (more than one) will receive the median price offered, rather than the lowest quote received. Does that make sense?
Chaos is created as follows: Dealer known only as “Jack the Crook Home Health Care,” does the following (is his company part of a chain?): He submits his bids so low that if he was awarded the bid he would go bankrupt. But that doesn’t happen!
“Jack the Crook” knows that median price is awarded to the lowest bidders (his company fits that slot) and he is in. This is dishonest, unfair to the legitimate dealers who to submit prices based on their cost and services, and more often than not, are in the top percentage of bids submitted. Now, they find themselves out of the loop.
As an industry we must attack this faulty legislation and show just how stupid it is. As a DME/HME dealer you must alert all your customers, family caregivers, and others to this rather poor bid and explain the consequences. When we all work as a team, we can accomplish that!
Find a copy of this WSJ Opinion and read it, share it, and then get on the bandwagon and get this yoke off everyone's back, particularly those of your clientele.
At Medtrade this spring in Las Vegas (4/10-12) a great deal of time will be devoted to this subject. Be sure you attend, there is far too much at stake for you not to be there. Seminars, workshops, and many experts all bringing with them the tools you require to maintain your company. You have to protect what you have, no one else can do that for you.