WHEELING, IL – Like so many HME providers, Stephen Sear would get rid of competitive bidding if he could find a functioning magic wand. Sear is a manager at Mark Drug Medical Supply in Wheeling, Illinois, and the next round of competitive bidding is a large concern, mostly because the 7000-square-foot shop does a sizable business in urological and ostomy supplies.
“Those supplies are not cookie cutter,” Sear says. “They are not well suited for competitive bidding—not for providers or patients. CB is set up is to have just a few big providers win contracts, so it really hurts a small business. It makes it impossible for a small business to get a contract and maintain that contract long term.”
The current benefits to local ostomy and urological patients are numerous when dealing with Mark Drug Medical Supply, as opposed to a large national company. “We are part of the community,” Sear implores. “If patients run out, they don’t have a place to go to get a box of [ostomy] pouches. A major supplier would mail it out to you in a day or two or three—depending on where it is and what it is in stock. With Medicare, we’re dealing with older people, and we have a relationship with the customers.
“At a large supplier, you’re not able to have that same relationship,” Sear continues. “We have seven customer service people, so you can always talk to the same person if you want. We get to know them and the customers like supporting a local business.”
With roughly 50% of Mark Drug’s revenue wrapped up in ostomy and urological supplies, Sear confirms that competitive bidding will have a dramatic effect on the business and its 17 employees. “These things also tend to have a trickle-down effect where lower rates trickle down to private insurers and Medicaid plans,” he laments. “So even if rates are not cut immediately, there’s going to be an effect on even the non-Medicare population.”
Banding together with other providers in an effort to win a contract is currently not an option because Mark Drug Medical Supply is technically too large to qualify as a small provider. “As a medium-sized independent provider, we feel we’re too small to be able to handle this, even if we had qualified to be part of a group,” Sear says. “We’re not sure we could develop the network of service to be one of the six-or-so providers.”
New numbers from the American Association for Homecare (AAHomecare) show that Mark Drug Medical Supply is not alone. AAHomecare surveyed the industry last month and results confirm that competitive bidding would threaten patient access on a national scale.
Based on Medicare claims data, AAHomecare estimates approximately 3,650 suppliers would be impacted by the remote item deliver competitive bidding program (RID CBP). A total of 306 companies, representing more than 1,500 locations, participated in the survey.
Key findings included: predictions of workforce reductions; business viability risks; product category exits; reduced service areas; and impacts beyond Medicare. “These findings are in contrast to CMS’ Regulatory Impact Analysis for the CY 2025 Rule, which stated there would be ‘no economic impact’ from the RID CBP,” wrote AAHomecare officials in a message to members. “This data makes clear the need to pause the Competitive Bidding Program for further evaluation.”
Article is certified HUMAN.
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