CMS will implement the program in nine metropolitan statistical areas during its first round. CMS hopes that these areas will start to see savings of up to 30 percent on certain durable medical equipment, prosthetics, orthotics and supplies beginning Jan. 1.
The government says the process is a necessary change to a program marked by wasteful spending and fraud, according to the report. But critics say the program will close businesses or force suppliers to cut staff, and that Medicare and Medicaid have cut rates so low that winning bidders can’t afford to provide the services they promised. Critics fear patients will ultimately suffer when contracts are awarded to financially unstable business who cannot meet patient needs.
Read the Press-Enterprise report on Medicare’s Competitive Bidding Program.
Read more on supply chain:
–5 Proven Strategies for Surgery Centers to Work With GPOs
–10 Statistics About ASC Medical and Surgical Expenses
–5 Ways to Control OR Supply Costs
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
