CMS outlines next steps on DME bidding process

The CMS announced plans to begin the rebidding process for round one of its contentious competitive-bidding program for durable medical equipment suppliers.

Agency officials, who plan to open the bidding sometime this fall, said that the new process will include a review of DME suppliers’ financial documents and a requirement that suppliers disclose any subcontracting relationships with other suppliers. The new process also will exempt hospitals that supply certain DME equipment to their own patients from being required to participate in the bidding process.

The DME competitive-bidding program, which will award Medicare contracts to suppliers of wheelchairs, prosthetics and other DME equipment in an effort to cut costs, was delayed by Congress last July. Suppliers and patient groups widely criticized the initial bidding process, which awarded 325 contracts to vendors in 10 cities, saying the project threatened to put small suppliers out of business and limit patients’ access to quality supplies and services. Congress canceled the contracts and ordered the system revamped.

The CMS has scheduled a June 4 meeting of its DME competitive-bidding program advisory board, after which the agency will release a detailed timeline for the program and bidding process, according to a news release. The agency expects to open registration for the fall bidding process sometime this summer.

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