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First-Round Bid Deadline Tomorrow

Sep 24, 2007 12:45 PM

BALTIMORE--Less than two days remain for HME providers to submit bids for the first round of CMS' DMEPOS competitive bidding project--and this time there's no last-minute extension in sight, according to industry stakeholders.

Bids must be submitted electronically through the Competitive Bidding Submission System by 9 p.m. ET tomorrow. Bidders must also submit a variety of hard copy documents, including financial statements, postmarked by the Sept. 25 deadline.

In addition, according to a notice on the Competitive Bidding Implementation Contractor Web site: "All bidders must certify their bids in the CBSS before the close of the bidding period. To certify a bid in the CBSS, click on 'Certify' on the Bid Certification page of Form B. All bidders must also print and sign this bid certification page and submit it to the CBIC along with the other required hard copy documents."

Just hours before the previous bid deadline of July 27, CMS extended the bidding window by 60 days. But another extension is unlikely this time around.

"I do not think there will be an 11th-hour extension--nor have I heard a loud outcry for one," said John Gallagher, vice president of government relations for Waterloo, Iowa-based buying group VGM. Gallagher said providers he has spoken with had finished bidding shortly after the extension and some had "reviewed their bids and corrected any problems that were made in haste."

As well, observers said they did not expect a last-minute rush to bid. "I think the vast majority of providers submitted bids at the time of the original deadline," said Miriam Lieber of Sherman Oaks, Calif.-based Lieber Consulting.

Both Lieber and Gallagher said they were unaware of any current major system problems such as those that crippled the bidding prior to the July 27 deadline.

Those comments were echoed by Walt Gorski, vice president of government relations for the American Association for Homecare. "We are hearing of minor technical glitches, but nothing at the same magnitude as we had before the 60-day extension," Gorski said.

He was concerned, however, that as late as Sept. 19, CMS was offering new guidance via the "frequently asked questions" section on the CBIC site. "Right now, our major concern is what happens with the bid applications that CMS deems as incorrect or incomplete. The guidance has changed as to how members will be contacted or if they will be contacted," Gorski said.

Bidders should take precautions by checking on the status of their bids, Lieber said. "I would recommend that every provider who submitted a bid review their submission to be sure it was complete and marked as such by the CBIC."

The CBSS provides a private, unique home page for each bidder that allows them to check on the status of their bid.

AAHomecare reported last week that provider Anthony LaCute of Seeley Medical in Andover, Ohio, had done just that. "He found that his company's Form A had been deemed 'incomplete' because of the way the online bidding system treated an entry of '0 years and 8 months' for length of time in business for one of the locations," AAHomecare said.

"LaCute's take-away lesson was: Even if you receive certified confirmation that your hard copy was received, make sure to check the CBSS to see whether the status of your bid has changed."

Meanwhile, even as the clock ticks closer to the bid deadline, providers are finding themselves in a holding pattern. CMS will not announce winning bidders until February 2008; competitive bidding begins July 1.

Pro2 Respiratory Services in Cincinnati, Ohio, was an early bidder. "We bid by the first deadline," said Genie Cordes, executive vice president, adding that she believes the majority of providers had done the same.

While Cordes said it took company executivs a month to develop their bid, Pro2 did have an advantage: All of its nine branches, only one of which is in a competitive bidding area, are already accredited.

Now, Cordes said, "It's a waiting game for us."

It's a waiting game for Riverside Medical Supply Co. in Riverside, Calif., too, but the result could be vastly different. Owner Peter Kim said he did not bid.

"We weren't prepared for the qualifications," he said, noting that the small mom-and-pop business could not afford the cost of accreditation. First-round bidders are required to be accredited by Oct. 31 in order to win a contract.

"We needed more time to prepare and more education on how to get into the bidding," Kim added.

His company handles a lot of Medicare business, Kim said, and he knows that competitive bidding has put his business in jeopardy. "We are just waiting and seeing what is going to be happening," he said. "With Medicare reimbursement, they are cutting and cutting. We are thinking about whether we should continue in this business."

Providers such as Pro2, however, are determined to survive. Even as it waits for the bid results, the company is seeking better ways to do business, Cordes said. "We're trying to be a little smarter about delivery services, because certainly allowables are going to change. We're trying to be smarter about how we are serving people without cutting our service to people."

Gorski said providers should also use the time to contact members of Congress regarding pending legislation that affects competitive bidding and the HME industry.

"With the prospect of not winning a bid becoming more of a reality, suppliers must push for the provisions in the Tanner-Hobson legislation, which include an 'any qualified provider' provision as well as restoring due process rights for HME providers," he said. "We are entitled to know how decisions that will make or break companies are being made by CMS. Those decisions should not be made in a black box without accountability."

Gorski said industry stakeholders should be strongly apprehensive about where HME stands on the legislative front regarding Medicare. "Both the House and the administration have shown a willingness to cut HME while the Senate has not produced a package," he said. "We must redouble our efforts over the coming weeks and months to work on all these issues. They are not going to magically disappear without the strong support from lawmakers in both parties."

Access the CBIC Web site.


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