Washington Failing to pass a Medicare prescription drug benefit, U.S. Senators packed their bags Aug. 1 and headed home for a month-long recess. Nonetheless, in the mind of at least one influential senator, plans for nationwide competitive bidding still were brewing.

It is a “definite possibility” that Sen. Bob Graham, D-Fla., will introduce a proposal for competitive bidding when the Senate reconvenes in September, the senator's press secretary told HomeCare.

Meanwhile, as industry advocates prepared to defeat Graham's proposal, some DME providers began to buckle under the pressure of an uncertain future, according to Jane Bunch, chief executive officer of Jane's Billing and Consultation Services in Marietta, Ga.

“We have had several clients sell out to national [DME providers] recently,” Bunch said, explaining that some buyers are using “scare tactics” to encourage independent DME providers to sell low. These buyers are saying that independents soon will not be able to compete, Bunch explained.

Offering a message of hope, Bunch urged skittish providers to remain calm. “We've had a lot of uncertainties over the past 20 years [in the DME industry], but we've always overcome these obstacles,” she said. “With the number of beneficiaries that will enter the [Medicare] system over the next 10 years, all this industry can do is grow.”

But not all industry experts believe that small DME providers are looking to sell. On the mergers and acquisitions front, things still are relatively calm, according to Dexter Braff, president of The Braff Group in Pittsburgh.

“Justifiably or not, we've not seen anyone crafting a divestiture strategy that has anything to do with what is being tossed around in Congress,” Braff said. “Any flurry of selling you may be seeing is just coincidence. Sales you're seeing now probably began six months ago, and competitive bidding didn't heat up until [this past] April or May.”

Even if competitive bidding became a reality, most providers would wait to see how the government implemented the new system before jumping ship, Braff added.

Hoping to ensure that Braff's predictions are correct, Bunch offered the following advice to anxious providers: “Don't get intimidated by any company wanting to buy your company. They're out for themselves, not for your welfare. Let's just wait and see what happens, and if [competitive bidding] passes, we'll make the best of it.”

Offering further solace, Tom Connaughton, president of the Alexandria, Va.-based American Association for Homecare, said he is confident the industry's lobbying efforts will pay off this month. “We are having an impact, and if we keep it up, I sincerely believe we can win on all fronts.”

However, achieving such a victory will require a lot of work, he noted, encouraging industry stakeholders to continue calling and meeting with their members of Congress. Connaughton also reminded AAHomecare members to attend the association's free “fly-in” event on Sept. 18, during which industry representatives will be able to express their concerns directly to lawmakers on Capitol Hill.

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