Oxygen


Funding Focus

Collecting Private Pay Accounts

The Centers for Medicare & Medicaid Services’ (CMS) final rule, mandating transfer of title of all oxygen equipment to the beneficiary at the end of 36 months (or possibly 13 months if Congress approves the president’s budget), should cause providers to pause and rethink their current process for collecting the patient financial portion. Comments in the final rule, in fact, state that patient costs contributed to the development of the equations used to calculate the formulas for payment methodology. CMS has clearly established that the provider has a reasonable expectation to be paid.

Turn Your Repair & Maintenance Headaches Into Revenue

As all the industry knows, the Centers for Medicare & Medicaid Services (CMS) announced changes to oxygen payments last Nov. 1, 2006. Within the ruling are provisions for the repair and maintenance of equipment. However, there is a gray area concerning what happens after a beneficiary owns the equipment. If transfer of ownership occurs after three years, but the provider is still responsible for equipment maintenance for five years, what happens in between?

Industry Inspiration

Even If It’s Wearable, It May Not Be the Right Fit!

Team Up With New Oxygen Technologies

New Oxygen Technologies Help Providers Reduce Deliveries and Still Service Patients

OXYGEN: Cutting the Costs of Service



Legal Speak

Still in the Dark on the DRA

The Deficit Reduction Act of 2005 (DRA) revised the Medicare payment methodologies for oxygen and certain DME. Effective January 1, 2006, Medicare no longer pays for oxygen as a continuous rental. Under the new reimbursement methodology, Medicare will pay for oxygen equipment for only 36 continuous months.

Funding Focus

Whose Business Is It?

Sweeping changes: the one true constant those who work in the DME industry can count on. These changes have the potential to affect company owners, shareholders, employees and the patients they serve. The passing of the Deficit Reduction Act included a bill that limits rental payment to providers to 36 months for oxygen services. At the end of that period, ownership and responsibility for service and maintenance is transferred to the patient. Statistics show that for most companies, this transfer equates to a significant reduction in reimbursement for 35% of the oxygen patients they serve, as that is the number of patients that require long-term oxygen therapy (LTOT) beyond 36 months.

Oxygen: A Sampling of Strategies

Providers have enacted strategies from the simple to the sophisticated in their efforts to maintain viable businesses. Creativity, in-depth analysis and a fresh perspective have produced the following insights:

Industry Inspiration

Adventures in Adversity

By Thomas L. Petty, M.D.

Under Siege

The Oxygen Industry Speaks...

Perhaps the most important thing to come out of these particularly challenging times is that people are sitting up and taking notice. Whichever part of the industry you serve, the bottom line message is one of concern, thoughtfulness and calls to action, motivated by a deep desire to provide the best services, equipment and treatment options for the client. When all of these factors come together in one strong voice, change can—and will—happen, for the greater good of the entire industry.

The Rainy Days of Oxygen Industry Legislation

Funding Focus

What Will the Future Bring For Oxygen Providers?

Where will oxygen providers be in 2007? 2008? Unfortunately, the answers are unclear. We have some guidelines from the Centers for Medicare and Medicaid Services (CMS); however, much of it is vague and some of it is simply inconceivable. Our fight has already started.

Legal Speak

Be Prepared; We can’t ignore the 500-lb. elephant in the room

The oxygen patient has been the focus of the respiratory company’s attention. Providers, especially those that follow a clinical model, take great pride in the services they furnish to these patients. Over the years, this portion of the home care community has sought to distinguish itself on the basis of its commitment to managing the disease process rather than merely treating the symptoms. Providers have competed on the basis of their services and their willingness to work with others on the patient’s health care team. Policy-makers have not always acknowledged this commitment to service, but this was never a deterrent. Even when policy-makers reduced Medicare reimbursement for oxygen over the years, I was impressed by your commitment to your patients and your communities.

HME Business Podcast