BALTIMORE--In a flurry of activity related to the implementation of national competitive bidding, CMS has scheduled a series of bidders' conferences, posted bid limit revisions for some HCPCS codes and released the measuring stick it will use to evaluate bidders' financial stability.

With its 60-day bidding window to close July 13, the agency has set three educational teleconferences for bidders this week. Each call will last approximately one hour, including time for questions and answers. The following calls are scheduled:

--Submitting Your Bid: Today, 2 p.m. ET - This conference is designed to help bidders navigate the competitive bidding submission system.

--Understanding the Bidding Rules: Wednesday, June 6, 2 p.m. ET - Officials will discuss issues such as common ownership, the types of financial documents that must be submitted as part of an application, small business provisions, the bidding evaluation process and time frames.

--Product Categories: Friday, June 8, 2 p.m. ET - Topics will include how product categories were selected, what constitutes the mail-order diabetic testing supplies category and what is included in the grandfathering provisions.

There is no charge for the teleconferences, but providers must register for the calls in order to receive the dial-in number and a pass code.

Last week, CMS also released the measures that will be used to evaluate the financial stability of providers who compete in the bid. According to program requirements, all bids must include financial documentation in order for a provider to be considered for a contract.

According to the release, "CMS and its Competitive Bidding Implementation Contractor (CBIC) will evaluate each bidder's financial documentation to determine whether the supplier will be able to participate in the program and maintain viability for the duration of the contract period."

The agency said the measures it will use are "standard accounting ratios commonly used to evaluate financial health." Those ratios include:

• Current ratio = current assets/current liabilities
• Collection period = (accounts receivable/sales) x 360
• Accounts payable to sales = accounts payable/net sales
• Quick ratio = (cash + accounts receivable)/current liabilities
• Current liabilities to net worth = current liabilities/net worth
• Return on sales = net sales/inventory
• Sales to Inventory
• Working capital = current assets - current liabilities
• Quality of warnings = cash flow from operations/ (net income + depreciation)
• Operating cash flow to sales = cash flow from operations/ (revenue - adjustment to revenue)

The provider's credit history also will be considered in the evaluation of its financial health, CMS said.

In related news, the top three HCPCS codes in each of the competitive bidding product categories were posted on the CBIC site last week.

CMS also issued notice of several changes. It has revised bid limit amounts for HCPCS code E2374 (power wheelchair accessory hand or chin control interface, standard remote joystick [not including controller], proportional, including all related electric fixed mounting hardware, replacement only).

The new fee schedule amounts will be implemented on July 2 as part of the July DMEPOS Fee Schedule Update and will be effective for claims with dates of service on or after Jan. 1, 2007. CMS advised providers who have already submitted bids for product category 3 to consider revising their bids to reflect the changes.

In addition, CMS made technical corrections to item weights for products in categories 2 (standard wheelchairs, scooters and related accessories) and 3 (complex rehab power wheelchairs and related accessories).

The FAQ section of the CBIC Web site also has been updated with questions and answers on networks, payments, product categories, small suppliers and competitive bidding areas.

For more information or to register for the teleconferences, visit the CBIC Web site at www.dmecompetitivebid.com.