Wednesday, April 02, 2008
Congressman Patrick J. Murphy

414 Mill Street

Bristol, PA 19007

Regarding:  Medicare Competitive Bidding & Durable Medical Equipment Issues 

Dear Congressman:

My name is Andy Scolnick and I am the Vice President of a family run medical supply company located in Feasterville, Pennsylvania.  Our company has been providing medical equipment and service to the public for over 25 years.

For the last several years our health care system has been undergoing a tremendous change.  I truly believe that medical supply companies like mine and ultimately our patients are headed in a direction for disaster.   

Our industry has become one of the most regulated portions of the health care system.  Over the last 4 years legislation has set a process in motion that will eliminate more than half the medical supply companies serving Medicare beneficiaries.

Competitive bidding for Medicare business, wherein the only likely survivors will be a handful of the larger national medical supply companies, will result in a serious loss of personal service and quality products for our clients.

This is not “Wal-Mart”, wherein the lower cost of products to the public, justified the loss of the more personalized service of the “Mom and Pop” stores.  Our clients are the sick, disabled and the elderly.

The ability to personalize service as a “neighborhood store” by visiting our patient’s home to deliver and explain the use of hospital beds, DME, wheelchairs, respiratory supplies, power mobility equipment and return on regular intervals is a routine part of our business. The ability to respond to emergencies on a “24/7” basis and getting to know the client’s family as well is simply part of our routine service.

If unrestricted “Competitive Bidding” by Medicare is passed, which will most certainly be followed by the private medical insurance industry, then the demise of the local medical supply businesses such as mine, will surely follow. 

Unlike the “Wal-Mart” situation, the people who will suffer the most are our clients. These clients are everyone’s friends, neighbors and relatives.

For these reasons, Congressman, I ask for your support for any pertinent legislation coming before congress.  I have enclosed additional documentation supporting my stand on these issues.

I am grateful for anything you can do in our behalf.

Sincerely,

Andy Scolnick, VP

Seventh Street Medical Supply, Inc

307 E. Pennsylvania Blvd.

Feasterville, PA  19053

info@seventhstreetmedicalsupply.com

www.seventhstreetmedicalsupply.com

 
The following issues are the most pertinent affecting our segment of the industry:

1)   Suspend Bidding for DME Equipment Pending Reviews of Studies

Analyze the recent studies and results that point out the grave issues with bidding for healthcare.  The results from Robert Morris University economic study and the supporting study published in the Southern Economic Journal, clearly point out the flaws in the current program and the devastating effects it will have on small businesses and consumers.

(http://www.pamsonline.org/pdf/2008-promo-DME%20Economic%20Impact%20Study%20-%20FINAL%202-18-08.pdf)

(http://www.pamsonline.org/pdf/2008-promo-Study%20Summary%202-14-08.pdf)

2)   HR 1845 Must Be Passed Including the Any Qualified Supplier Provisions

If the bidding process for DME is to proceed, the provisions of HR 1845 must be included as part of any Medicare legislation that moves forward.  This bill will protect the due process rights for suppliers and the freedom of choice for consumers.

3)   Current & Proposed Oxygen Cuts will cause Emotional, Physical and Financial Harm

The capping of oxygen payments and further changes for home oxygen will be severely detrimental to nearly 1 million Medicare patients.  Home bound oxygen patients will suffer emotional stress and will physically be unable to manage their equipment when ownership transfer takes place, thereby increasing emergency room and inpatient stays.

There will also be major out of pocket expenses to Medicare recipients for support that providers will no longer receive.  There must be no further cuts to oxygen reimbursement and we must pass HR 621.

4)   Alternative Means to Reduce Medicare Costs Must Be Considered

Congress and CMS must look for alternatives to reduce Medicare expenditures.  Savings can be obtained.  We must hold Medicare contractors accountable for allowing waste, fraud, and abuse.

5)   Balancing the Budget on the Backs of Homecare Providers Must Stop

Medical supply companies (DME) are the smallest segment of Medicare spending at under 2%.  We are not the problem, but a part of the solution to high healthcare costs.  Physician and hospital spending by Medicare is over 60% of the total Medicare budget.  A reduction of just 5% in physician and hospital spending would save more than the total annual expenditure for DME.