VGM Tackles Scooter Store Tactics

WATERLOO, Iowa — The actions of a "prominent national provider" are endangering the future of the HME industry, the CEO and founder of buying group giant VGM Group said in a statement distributed at Medtrade Spring in Las Vegas.

"We are endangered by misguided and hostile government policies, and it is getting worse," wrote Van G. Miller in an open letter to VGM group members. "We are also endangered by one prominent national provider, which has engaged in practices and followed policies that have brought this government backlash onto all the rest of us."

In his letter, Miller asked independent providers to consider the business practices of New Braunfels, Texas-based The Scooter Store . The national provider routinely runs television ads that have proven controversial in the industry and also was a winning bidder in several markets in last year's delayed competitive bidding project. In 2007, the company paid the federal government $4 million and agreed to waive another $13 million in Medicare payments to settle Medicare fraud charges.

"Consider the additional costs we all have had to bear lately due to these aggressive marketing practices and regulatory backlash in an environment where our net reimbursement received decreases regularly," Miller wrote. "Think … added documentation costs, audit risks, surety bonds, mandatory accreditation, lobbying time and expense, etc., etc. Most of this could have been avoided if just a few companies had heeded common sense and refrained from figuratively 'poking the tiger with a sharp stick.'"

Mark B. Leita, senior director of government relations for The Scooter Store, responded to Miller's letter: "In light of his accusations, The Scooter Store recognizes there are larger issues plaguing the home care community that require our complete attention, such as rescinding the [interim final rule for competitive bidding]. Our multiple manufacturing partners, as well as the state and national organizations we work closely with, all recognize that if we do not pull together and rescind this government-mandated consolidation program now, quality of care for our seniors will suffer."