Providers and VGM Members Testify at 2014 National Regulatory Fairness Hearing

WASHINGTON (June 27, 2014)—Tyler Riddle, owner of MRS Homecare in Albany, Ga., joined six durable medical equipment providers and Peggy Walker, director of reimbursement services for VGM Group, Inc., in testifying at the 2014 National Regulatory Fairness Hearing in Washington D.C. For 34 years, MRS Homecare has served seniors and people with disabilities who rely on quality medical equipment. The business has expanded to 12 locations in Georgia and employs about 100 people, but for Tyler, and many other DME providers, the future is uncertain because of Medicare changes and strict government regulations. “With the current predatory audit environment that we are in, I can’t look at each of you in the eye and tell you if my business will exist in the next five years,” Riddle, who is a member of VGM, said to members of the Small Business Administration. In an effort to decrease program fraud and abuse, Medicare has increased pre-pay and post-pay audits. During the audit process, repayment for products can be held, which DME providers say is severely hurting their small businesses. “I, as well as many other small businesses, am struggling heavily with cash flow. How do you budget when you have no idea when or if you will get paid?” said Regina Gillispie, owner of Best Home Medical in Barboursville, W.Va. Danyelle Carroll, owner of Mobility Medical Equipment in Flowood, Miss., also testified. “I was a victim of a complex rehab audit of more than 120 patients at once with a 30-day timeframe to pay. Fines totaled $600,000. I was put on lock down and could not run operations for the company, resulting in significant amounts of business loss.” In addition to audits, DME providers discussed concerns with the Medicare competitive bidding program. Jeff Knight, CEO of Premier Home Care, Inc. in Louisville, Ky., shared his personal experience. “Premier was significantly impacted by the competitive bidding project.In the Louisville competitive bidding area—in which Premier did not receive any contracts—we lost nearly 55 percent of our total referrals. The financial impact for the first year of competitive bidding is projected to be a loss in revenue of $2.62 million.” Owners worry that if changes aren't made to Medicare programs soon, more DME providers will be forced to close their doors. They are looking to the government for help. “I ask that you at the Small Business Administration be our voice and address these issues in Congress on our behalf before CMS and these audit contractors put us all out of business,” said Riddle. “We look forward to working with you to remedy the situations raised,” said Muriel Watkins, Region III Regulatory Fairness Board Member. Presiding over the hearing was Brian Castro, national ombudsman and assistant administrator for regulatory enforcement fairness, and Anthony Ruiz, assistant director of the Small Business Administration. Region III Regulatory Fairness Board Members in attendance were Muriel Watkins, Marilyn D. Landis, and Dona A.P. Storey. Learn more about the issues DME providers and patients face and take action at dearmedicare.com.