WATERLOO, Iowa--A new company backed by The VGM Group has been created as an accreditation body for HME providers.

According to Executive Director Mary Nicholas, Healthcare Quality Association on Accreditation was formed specifically for the HME industry in response to the Medicare Modernization Act, which mandates that all Medicare providers be accredited. The organization debuted at VGM's Heartland Conference last week.

VGM had considered the idea of forming an accreditation agency for years, but began serious research about a year ago, Nicholas said. "We were asked by VGM members to try to make the accreditation process more relevant to HMEs and less expensive in both out-of-pocket cash and staff time," she said.

"VGM saw a huge need, partly with members and partly across the industry," she continued. "Anywhere between 60 to 70 percent of providers are not accredited. We are well-equipped to offer an accreditation alternative ... and with thousands of HMEs requiring accreditation in a relatively short period of time, we felt we couldn't wait any longer."

CMS is expected to finalize quality standards for DME providers this summer and, by the end of the year, designate accrediting bodies to enforce them. Some industry-watchers have questioned whether the accrediting organizations currently in existence will be able to handle the massive number of suppliers expected to apply for accreditation. In HomeCare magazine's 2005 Forecast survey, only 44 percent of responding providers said their companies were accredited.

HQAA has followed CMS' guidance about its accreditation expectations to date, and the agency "was very open to the idea of a new company coming into this process," Nicholas said. "We are confident that we'll meet the expectations as an accreditation agency with CMS recognition."

Nicholas said accreditation by HQAA will include a site visit when a provider determines his business is ready. But she noted that the process will be Internet-based and entirely paperless. "My Workroom" will offer real-time support, allowing providers to exchange information with HQAA coaches in a personalized accreditation "workroom." Pricing will be competitive, according to the company, and will be customized for each provider.

VGM has committed $500,000 to the non-profit entity, which will be housed in a separate office building in Waterloo and governed by a board of directors made up of industry experts. The organization is expected to stand on its own within a year.

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