Adapting to Challenges

In Frost & Sullivan's report, North American Mobility Aids Markets, published last year, the authors write that the North American mobility market will experience unparalleled growth in the number of potential consumers.

This growth is attributed to the aging population, as well as to Americans who become injured as a result of active lifestyles. Yet, providers and manufacturers alike acknowledge that although technological advances are occurring, funding is the obstacle foremost on the minds of those who sell and use the products.

Because of the diverse demographic profile of mobility equipment users, providers must navigate the reimbursement maze of Medicaid, Medicare and private payers. Medicaid reimbursement policy is the No. 1 issue for the rehabilitation market, says David T. Williams, director of government relations for Invacare, Elyria, Ohio.

“Currently, 37 states are unable to balance their budgets, and all of them assert the unexpected and unacceptable growth in Medicaid as the reason,” he says. “Therefore, since Medicaid is the major payer for rehab technology, they are looking to make huge cuts and change payment policy in Medicaid in this area.”

The solution could be as complicated as the payment structure. Williams explains that the HME industry needs to be more diligent in watching and tracking state policy changes and sharing that information with the entire industry.

THE IMPACT OF FUNDING

Funding problems are also impacting product development, says Simon Margolis, vice president for clinical and professional development of National Seating and Mobility, Chattanooga, Tenn., and president of the Rehabilitation Engineering and Assistive Technology Society of North America. “Innovation in wheeled mobility has been factored by funding and coding over the last five years,” he notes.

Gary Gilberti, president of Chesapeake Rehab in Baltimore, anticipates further limitations due to funding problems. “The changing environment on Capitol Hill retards the growth in technology, so I'm not sure where we're going to be headed in the future,” he says.

“There has been some very good evolutionary progress in making the products better with more features … but there hasn't really been any sort of revolutionary product development,” Margolis adds.