Clockwise from top left: Cassandra Estes, Kim McGraw, Marissa Shira, Lena Lindahl

"This has been a crazy year,” confided Thomas Connaughton, president and CEO of the American Association for Homecare, to members of the press at a briefing at Medtrade. In 2001 we saw fallout from a “too-close-to-call” presidential race, a US senator switch the party leadership in the Senate by becoming an independent, terrorists attack us on our own soil, and our country go to war. Our nation’s political and social landscape changed not just once, but several times, and as an industry, we now face a world far different from the one we faced in 2000.

Many things are worrying. The budget surplus we counted on to pave the way for the elimination of the 15% home health care cut is now largely gone and what remains may now be needed for other goals, such as the war on terrorism. In addition, Medicare spending increased more than 10% in fiscal year 2001. The last time spending increased this much was in 1995 and the government reacted by passing the Balanced Budget Act, which severely curtailed home health care reimbursements. (See “Industry News” on page 14.)

But it is not all lumps of coal this holiday season. One present we can all be thankful for is the new Advance Beneficiary Notice (ABN) form, which simplifies the reimbursement process for Medicare beneficiaries paying for upgraded products.

Another is the new openness between the HME industry and the Centers for Medicare & Medicaid Services (CMS). At Medtrade last year, we considered ourselves lucky that CMS (then the Health Care Financing Administration or HCFA) would participate in a conference call at the show. This year, Tom Scully, CMS’ director, gave the keynote speech.

Medicare also expanded its coverage of continuous positive airway pressure (CPAP) therapy in October—the same month a Frost & Sullivan report projected the $386-million sleep apnea diagnostic and therapeutic market would pass the $1 billion mark by 2007.

Finally, as economic worries hit other industries hard, we can count ourselves lucky to be in an industry with a steady customer base. As the New York Times reported on November 11, 2001, health care is now expected to be the only driver of growth in the American economy in the near term.

Despite all that has happened in 2001, the world moves on, even if in a different fashion. Whether large or small, we still need to be competitive, as Carol Laumer of Rice Home Medical in Willmar, Minn, explains in her editorial “5 Rural Equations,” which starts on page 10. And whatever the coming year brings, Dealer/Provider will be here to provide you with the latest news and business tips to help you make sense of our rapidly changing world and thrive in the face of adversity.

On behalf of Cassandra Estes, our art director, Kim McGraw, our associate publisher, Marissa Shira, our news editor, and Tony Ramos, our publisher, I wish you all happy holidays and a prosperous New Year.

Lena Lindahl
llindahl@medpubs.com