BALTIMORE--Two weeks past its end-of-April target date, CMS flung open the bid window Tuesday for the first round of national DMEPOS competitive bidding.

All bids are due by 9 p.m. ET on July 13. The contract period for mail-order diabetic supplies is April 1, 2008-Dec. 31, 2009. The contract period for all other product categories is April 1, 2008-March 31, 2011.

Product categories and competitive bidding areas were announced in early April when CMS released its final rule (see HomeCare Monday Special Alert, April 2).

Charts with key information for suppliers in each of the CBAs have been posted on the Competitive Bidding Implementation Contractor Web site (www.dmecompetitivebid.com). CMS said providers should use the charts in preparing their bids, which will be submitted through an Internet-based system.

The request for bids did not catch providers unaware, although it evoked differing responses.

"We'll be ready shortly [to submit a bid]," said Chris Rice, director of marketing for Diamond Respiratory Care in Riverside, Calif., one of the 10 CBAs included in this round. "Starting next week, we'll be entering the basic data. I want to make sure I understand the online interface and have plenty of time to work through it."

Rice, who administers an online provider forum (www.competingbid.com), has been preparing for the CMS project for a year-and-a-half, and his company will bid on all product categories, he said.

On the other hand, James Bailey, owner of A Medical Equipment in Plano, Texas, is still on the fence about bidding. He's kept up with the massive changes in the HME field, but like most smaller providers, he's in a tight spot.

"We are in the process of getting accredited so we can bid but, honestly, I don't know [whether to bid]," he said. In order to be awarded a contract, suppliers must meet quality standards and be accredited by a CMS-approved accreditor by Aug. 31.

Bailey fully expects to meet that deadline, but he's still uncertain what he will do. His small, family-run company has four national competitors. It generates more than 30 percent of its revenue from Medicare, but the company doesn't have the personnel or the products to cover the entire Dallas-Ft. Worth CBA were it to win a bid.

"The area that ... they are mandating we service is just way beyond the scope of what I do now," Bailey said. "We were considering bidding in a network, but that hasn't been decided. I'm still trying to decide whether I want to accept assignment anymore."

Bailey said he is looking for a different approach to HME, maybe in retail or billing everything unassigned. In any case, he said, the possibility of losing his Medicare business is daunting.

"It's been the majority of my business since I opened up 10 years ago," he said. "My whole life is tied up in this business. Every dime I have or could borrow is tied up here. It's not simple."

If he does bid, it won't be right away. And that is OK, stakeholders say.

"It's not a race. There are no points awarded for being first in line," said Rice. "Providers really need to understand that and take the time to ensure their bid is both competitive and livable."

Cara Bachenheimer, vice president, government relations, for Elyria, Ohio-based Invacare, agreed. "Suppliers should spend the necessary time and resources to put together the best possible bid," she said. "They should not rush to submit it now ... There is no advantage to submitting a bid earlier in the 60-day window.

"I would suggest, however, that suppliers not wait until the absolute last day--July 13--because there may be significant volume, which may result in technical issues," she advised.

Mark Higley, vice president of development for Waterloo, Iowa-based VGM Group, conducted a seminar on competitive bidding for the California Association of Medical Product Suppliers the day after the RFB was issued. "The consensus is early June will likely be the time the majority will bid," he said.

Higley, along with Bachenheimer and Walt Gorski, vice president of government relations for the American Association for Homecare, strongly urged providers who have not already done so to register immediately for a user ID and password so they can access the bid submission system.

"It is my understanding that only between 800 and 900 suppliers have registered with the CBIC," Gorski said. "This seems to be somewhat low, so my advice is to make sure that if you plan on bidding, you register with the CBIC as soon as possible."