FAQs
What are DMEs?
DMEs are providers of Durable Medical Equipment, such as oxygen tents, Nebulizers, CPAP, catheters, hospital beds, and wheelchairs. Durable medical equipment is a term used to describe any medical equipment used in the home to aid in a better quality of living. It is a benefit included in most Insurances. Homecare Facts | download pdf
What's wrong with competitive bidding?
In the DME/Home Health industry, "competitive bidding" refers to the process used by Centers for Medicare and Medicaid Services (CMS) to determine both pricing and provider for a specific home health aid or assistance. The negative affects on patients of the CMS "competitive bidding" practice include:
Patients needing multiple services (oxygen, wheelchair, catheter, etc.) may be required to obtain services from several different providers. |
CMS "competitive bidding" creates a "winner take all" environment that encourages some bidders to submit prices that cannot be sustained in the industry. |
Hospitals that refer patients to their own DME/Home Health businesses formed a coalition to craft legislation that allows them to provide CMS services at the low bid price. Such a law effectively exempts Hospital-owned providers from the competitive bidding process. Conversely, Independent Providers who do not win the bidding process are not allowed to provide services to CMS patients. |
Patients lose. The result will be a reduction in the number of firms and less choice for patients. Reduced competition in the industry will likely lead to future price increases. |