The following article is from the American Association for Homecare's Washington Report:
AAHomecare Member Will Testify about Bidding Problems at House Small Business Hearing
Next week, we have a great opportunity to alert Congress about problems with Medicare's bidding program. On Tuesday, September 11, Tammy Zelenko, CEO of AdvaCare Home Services in Pittsburgh, will represent AAHomecare as she testifies before the Small Business Subcommittee on Healthcare and Technology. The subcommittee will hold a hearing titled "Medicare's Durable Medical Equipment Competitive Bidding Program: How are Small Suppliers Faring?" The hearing aims to help Congress understand the program's impact on small providers.
While CMS claims that it has special considerations to help small providers win contracts and that about 51 percent of winning providers are small (defined by gross revenue of $3.5 million or less), evidence from Round One of bidding indicates that the HME sector is suffering a severe, widespread contraction. In July, AAHomecare submitted to the House Ways and Means Committee a list of more than 450 HME providers who closed locations, sold to larger companies, or went out of business entirely.
Next week's hearing is an important lead-in to introduction of Market Pricing Program (MPP) legislation by Rep. Tom Price (R-Ga.) later this month.
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