AAHomecare Lawsuit to Stop Competitive Bidding Makes Four

WASHINGTON — In the latest legal maneuver to block implementation of competitive bidding, last week the American Association for Homecare filed a federal lawsuit seeking an injunction against the controversial project.

The suit, filed by D.C. law firm Sidley Austin June 9 in U.S. District Court for the District of Columbia, joins three others seeking to delay the bidding program.

Administered by CMS, competitive bidding has come under increasing fire as more problems surface with everything from choice of product categories for inclusion and the bidding process itself to the selection of contract winners and beneficiary access.

“This flawed bidding program has not only been mishandled by CMS, but both CMS and [the Department of Health and Human Services] have violated the underlying statute in developing and implementing the program,” said Tyler Wilson, AAHomecare president and CEO. “The bidding program will put thousands of home care providers out of business, and patients’ access to quality home medical equipment and services will suffer as a result.”

Wilson said he expected a hearing on the request for an injunction before July 1, the start date for round one of the bidding program.

The AAHomecare lawsuit was among three filed in less than a two-week period aimed at putting the brakes on competitive bidding.

On June 3, King & Spalding, Washington, D.C., filed a request in U.S. District Court for the District of Columbia for a preliminary injunction to halt competitive bidding on behalf of two small business owners--Carolina Medical Sales and AmeriCare Health Systems, both of North Carolina--that provide diabetic supplies.

On June 11, Amarillo, Texas-based Brown & Fortunato also filed for an injunction against competitive bidding in U.S. District Court for the Northern District of Texas, Dallas Division.

Funded by Waterloo, Iowa-based VGM Group’s Last Chance for Patient Choice, an entity formed to fight competitive bidding, the Dallas suit lists five home medical equipment providers and two beneficiaries as plaintiffs: Scooters Unlimited and DME, Allen, Texas; Reliable Medical Supply, Kansas City, Kan.; Eastern Medical Equipment Distributors, Pompano Beach, Fla.; JI Medical, dba Ramat Medical, Los Angeles; Preston Mobility Plus, Richardson, Texas; Jose M. Salas, Jr., Arlington, Texas; and Charles W. Bell, Fort Worth.