Rotech Accepts 17 Medicare Contracts
Rotech Healthcare, Orlando, Fla., has accepted 17 contracts awarded by CMS in the Round One rebid of the DMEPOS Competitive Bidding Program, according to a company press release on July 12. Rotech has agreed to supply Medicare patients with the following products in the unspecified metropolitan statistical areas:
- Six MSAs for oxygen supplies and equipment;
- Six MSAs for enteral nutrients, equipment and supplies;
- Three MSAs for CPAP, RADs and related supplies and accessories; and
- Two MSAs for standard power wheelchairs, scooters and related accessories.
“We are pleased with our success in the Round One Rebid of the national competitive bidding program, and we look forward to further growth and expansion of our existing presence in these initial cities,” said Philip Carter, Rotech president and CEO. “The new payment rates for our six oxygen contracts averaged approximately 30 percent off the current applicable Medicare payment rates. Not assuming any market share gains, the application of the new competitive bid rates to our existing patient base in these nine MSAs reduces our revenue by approximately $900,000 in the first quarter of 2011."
Carter concluded: “We believe, however, that our market share gains in the cities where we were awarded contracts will more than offset the reductions in reimbursement rates over time.”