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Defective Medicare Bidding Program For Medical Equipment Forces Severe Hardships On California Business Owners And Beneficiaries
Date:4/2/2013

n continue operating.  

"We are a mother and daughter team," she said. "We have five full-time and two part-time employees. The community has a large senior retirement population who depend on our company to provide DME and bill Medicare for their services. We have built a relationship of trust with our clients and their families. We have built a reputation of service bar none, like no other, and would like to continue this 30-plus year business!"

She pleaded with CMS to revisit the latest round of bidding. "At these rates we will not be able to sustain our company," Forbes said.

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Sunny Oh , owner of Aroma Medical Supply in Artesia, has run his store since 2006. "I have followed every single requirement stated by Medicare to uphold the integrity of the industry," he said. "However, with every new year the fiscal requirements of maintaining my license with Medicare have grown exponentially. To put things into perspective, I am a small business owner. I have three employees, myself included, to run our entire operation. We have grown and maintained great relationships with the local hospitals, adult care centers, and our patients. To have to now place competing bids with larger companies that can take on a smaller profit margin by amassing large quantity orders seems to be unfair business tactics placed on us by Medicare."

Oh said that Medicare business accounts for about 87% of his total revenue. 

"At this point, by losing the Medicare Round 2 bids is not a matter of (just) laying off a few employees for me, but a matter of losing my store and my livelihood," he said. "On the other hand, winning a bid, at current bid prices would only be a slight deferment of the inevitable with a slow choking off of revenue rendering us unable to maintain the cost of running the business. With this competitive bidding process, not only will it hurt my business but
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SOURCE American Association for Homecare
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