While no one claims that technology is the panacea for all that ails the respiratory industry several providers are already using new technology to their benefit and manufacturers are bringing new software to market on a regular basis.
Responses to Respiratory Management’s Survey
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:
New Oxygen Technologies Help Providers Reduce Deliveries and Still Service Patients
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.
By the time you read this, the mid-term elections will have just ended. But does the result matter for the respiratory home medical industry?
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.