Seth Johnson, vice president of government affairs, Pride Mobility Products Corp., Exeter, Pa.

Members of the industry who focus on rehabilitation are optimistic they can find some relief through legislative efforts, but they are also pushing for regulatory means that would exclude rehab products from the competitive bidding program.

“We have really been pursuing all options that are available to us, both from a legislative perspective with the efforts under way for H.R. 2231 and H.R. 1845, and also on a regulatory front with legislators weighing in with the Secretary of Health and Human Services,” says Seth Johnson.

The significant decline in access for those with disabilities that has occurred since new mobility coverage guidelines were implemented has already resulted in some legislators asking CMS to withdraw rehab products from competitive bidding, he points out.

He also notes that “the Secretary has the authority to make that type of a change at any point in the process. We certainly would like the Secretary to make those changes prior to the bidding continuing, but to the extent [he] does not weigh in prior to the close of the bid window, he could weigh in at any point in the process.”

Whether that does or doesn't happen, Johnson says, “we are going to continue to work that regulatory angle along with the significant efforts that are under way from a legislative perspective to preserve and protect the rehab providers.”

Joel Mills, CEO, Advanced Home Care, Greensboro, N.C.

Without reprieve, the HME industry will have a remarkably different face in a few years. According to Joel Mills, “We will see high-volume, low-margin businesses not dissimilar to the drug store or grocery store business. There will be some local niche players, but large regional and national companies will have the bulk of the business at lower margins.”

Local companies are going to be hit hard, Mills says, but all companies will have to change. “All companies will have to cut costs and cut services to patients as well as reduce the level of staff that is providing services to patients,” he says.

Even companies that win bids in their MSAs are going to be challenged, he believes: They may survive, but they may not thrive.

“The value of businesses will come down significantly because of the uncertainty and the continued cuts,” Mills says.

Mills, whose company has locations in one of the first-round MSAs, says it's high time to get politically involved. “The industry needs to be motivated. Everybody needs to get involved and get behind these bills and advocate,” he urges.

“Our industry is under attack, and unless everybody gets involved and starts talking to their members of Congress and inviting members of Congress into their facilities, we are going to continue to be under attack — and there is going to be a significant number of companies that are going to go out of business.”

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