Page 13 - HME Business, January/February 2022

A PERFECT STORM
Of course, at the same time that hospitals started relying on providers either to provide equipment for Covid-19 patients onsite or in the homecare setting, HME providers were feeling the pinch from other two other primary market forces, poor reimbursement and supply chain constraints.
Poor reimbursement represents a constant problem for HME providers as a whole, particularly with the 13 categories that CMS did not award contracts for in Round 2021. Rates on those devices have been frozen since 2016. While Medicare spending grew at a rate of 3.5 percent to $829.5 billion in 2020, DMEPOS only repre- sents 1.35 percent of Medicare’s budget. Programs such as competi- tive bidding, which forced provider closures and consolidation, have undercut what has proven to be an important component of U.S. healthcare infrastructure — right when Americans needed it the most.
“The DME network has been fractured and broken for so many years because of public policy,” Marx says. “If there were more DMEs that were able to facilitate that hospital discharge and care coordi- nation, we would free up beds faster, and hospitals wouldn’t need as many beds then because they would be turning them quicker.”
(Editor’s note: When it comes to reimbursement, the industry is seeing positive news. Turn to page 18 to read more about CMS’s final payment rule for DMEPOS, as well as nascent legislation to improve DEMPOS reimbursement.)
In addition to reimbursement, the industry is getting hit with a double-whammy of supply chain problems. First, there is the general supply chain problems that have hampered the U.S.
economy due to Covid-19 related shipping and port slowdowns. Soaring shipping prices have also meant soaring equipment prices. Second, HME providers are facing product delays due to the short- ages of component electronics and microchips in particular. Right now, auto manufacturers, consumer electronics companies, and medical equipment makers all rate the same when it comes to tapping into the narrowed supply of semiconductors.
“We need the government to
say, ‘not everybody that gets in
the deli line is created equal,’”
Marx says. “You would think
that products tied to the medical
community that’s specifically caring for Covid patients should take priority for microchip provisioning. The same thing goes with manufacturer recalls and how the FDA helps accelerate the Phillips recall to make sure that we have an optimal supply of ventilation units and CPAP devices.”
A PERFECT OPPORTUNITY
Fortunately, the industry has seen some relief during the pandemic. The industry benefitted substantially from Covid-19 relief such as
“The primary part of healthcare that created that release valve and opened up bed capacity is DME.” — Josh Marx, Medical Service Company
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February 2022 • 900,170-A2