Providers can stop wondering how CMS is going to evaluate whether they have the right financial stuff to participate in competitive bidding. The agency last week unveiled the calculations, which it called “standard accounting ratios used to evaluate financial health,” that it and the Competitive Bidding Implementation Contractor (CBIC) will make based on the financial information that HMEs submit. CMS expects their analysis to identify suppliers robust enough to deliver over the duration of their contracts should their bids win.
The ratios are: