Hold 'Em or Fold 'Em?

The exuberant atmosphere that so often characterizes Medtrade Spring was largely absent at this year's event, held April 24-26 in Las Vegas. But most HME providers who attended agreed the expo was the place to be for those seeking critical information on how to do business in an industry turned inside out.

About 7,500 providers, manufacturers and others allied to the home health industry turned out for the event, according to show officials. It was the first industry conference after CMS released its final rule on competitive bidding and set an Aug. 31 accreditation deadline for providers in the 10 cities where bidding will roll out.

Questions about the two topics were pervasive, and providers crowded seminars covering the issues, often overflowing into the halls of the Las Vegas Convention Center.

“Competitive bidding is foremost in everybody's mind, that and the accreditation [deadline] coming up in August,” said Sherman Mead of Golden Technologies in Old Forge, Pa. “They're trying to get a feel for what the reimbursement is going to be, the changes [coming up] and how they are going to affect their business.”

“Everybody is trying to figure out how to stay in business,” said Viola Jenkins, whose HME company, VitaCare Inc., is located in Dallas, one of the initial competitive bidding areas. “Everything we do is in there,” Jenkins said about the products included in the bid. “All of our products are going to be affected.

“Medicare is a huge percentage of our business,” she continued. “We will bid; we're just trying to figure out how to bid.”

Seminar presenters were inundated with questions like Jenkins' and others about competitive bidding, ranging from the very basic “What is competitive bidding?” to “Should I even stay in the business?”

“People are trying to understand what this means for them and what they need to do in their business,” said Mike Mallaro, CFO for The VGM Group, Waterloo, Iowa. The buying group's booth drew scores of members and non-members alike, many of whom wanted suggestions for new niche markets and cash-only items to shore up their bottom lines, he said.

While it appeared difficult for many providers to comprehend the reality of what lies ahead for HME, Mallaro said, “I think most people are beginning to understand. But the devil's in the details.”

And the details of the 401-page final rule were overwhelming for providers to absorb in such a short time, stakeholders said.