It's the wind-down of another eventful year for home medical equipment providers, and 2006 is looking like it definitely won't be dull, either.
At this writing, there was talk of yet another oxygen cut, and Congress was working on a budget bill that included a disastrous amendment dealing with capped rentals for DME. There is confusion over new mobility coverage guidelines and claims requirements, and CMS' announcement that it will slash dispensing fees for neb meds next year has thrown pharmacies for a loop. One respiratory provider I spoke with recently was heartbroken that, right before Christmas, he was going to have to lay off two-thirds of his pharmacy staff to keep that portion of his business going at a profit.
In a matter of months, competitive bidding for DME will begin, and providers who want to keep doing business with Medicare will be scrambling to meet what could be some tough quality standards. HHS' Office of Inspector General also could throw out a few more curve balls as it begins investigation into a laundry list of issues related to HME next year.
It's enough to make you say “Bah, humbug!” But I won't, because I simply can't be pessimistic about the prospects ahead.
Of course dealing with unknown government changes is nerve-wracking, but since when has that backdrop to this business been any different? Of course trying to educate federal lawmakers and regulators about a complex industry that they don't understand is frustrating, but many are beginning to come around. Of course making decisions like the pharmacy owner had to do is the pits, but on the whole, the bottom line is that you are in an enviable position.
You have dedicated employees. You have amazing growth potential in a wide range of product sectors, and there is a burgeoning population that needs the equipment and services you sell. More important, you help people. Most providers I speak with tell me they would rather be doing that than anything else they can name and would choose working in HME any day of the week and twice on Sunday.
On my annual ledger, that adds up to being lucky. Unfortunately, there doesn't seem to be an Easy Button for getting through the next few years (although there is one very easy thing you can do to help: Contact your legislators to support H.R. 3559, the Hobson-Tanner bill). There is no way of knowing exactly what you will face or how you might need to change your company to survive. But in the words of one provider who responded to our 2006 Forecast Survey (page 18), “We love what we do, and our patients love us for it. We'll find a way.”
As HomeCare heads into our 29th year serving providers, we know you will.
