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Issue: May 2004
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HMESA Releases Product Schema
The Home Medical Equipment Standards Association (HMESA) has finalized a framework for standardizing product-naming conventions, product hierarchy, and units of measure.

HMESA hopes the framework, or schema, will improve efficiency, increase productivity, and reduce costs in the HME supply chain by facilitating the smooth transfer of information between manufacturers and providers.

The schema breaks down products into six categories: home care furnishings, rehab, respiratory, personal care/patient aids, sleep, and supplies. Then, those product categories are subdivided by segment, class, group, and individual model number.

The system will alleviate order entry problems, such as ordering something that cannot be delivered or is no longer available, says Steve Neese, president of HMESA and vice president of customer operations and e-business at Invacare, Elyria, Ohio.

Neese says the standardization of units of measure will help providers reconcile their deliveries against invoices. An example, he says, is a provider that thinks it is short-shipped when it orders four walkers and receives only one box, not knowing that the walkers are shipped in boxes of four.

HMESA will not enforce the schema among manufacturers, but Neese thinks that at some point, providers will start demanding its use because of its convenience.


AAHomecare Financial Questionnaire Available on Web
Providers have until the end of this month to participate in the American Association for Homecare’s annual benchmarking survey.

 The updated questionnaire for the AAHomecare Financial Performance Survey is available on the association’s Web site, www.aahomecare.org. The summary report is expected to be released in early September 2004. Last year, more than 120 providers of varied size and type completed the survey. AAHomecare says it is looking for at least 150 companies to participate this year.

The report presents financial variables in terms of industry averages as well as comparisons with firms of similar size and product line. In addition to income, expense, and balance sheet information, there are special sections on labor costs, clinical and delivery management, billing productivity, and accounts receivable collections.

AAHomecare members that complete the questionnaire will receive the final survey report for free, plus receive a company-specific analysis and an industry profitability report. Participating nonmembers will receive the survey report for $250—50% off the sales price.


VGM Financial Division Changes Hands
Although the division of The VGM Group that finances the acquisition of products for members was recently acquired by TCF Leasing Inc, most member providers may not even notice the difference.

The reason members may not be aware of the changeover is that Minnetonka, Minn-based TCF Leasing, which in March acquired VGM Leasing Inc, doing business as VGM Financial Services, also entered into a long-term agreement to become the exclusive provider of financing for The VGM Group, Waterloo, Iowa. In addition, VGM Financial Services will continue to market its products under the same brand names currently used, and TCF Leasing intends to retain all current employees of VGM Financial Services, which will remain at its current office location in Waterloo. Terms of the deal were not announced.

“As The VGM Group moves forward, we do so with a newly energized, highly capitalized partner to serve the financing needs of our members and participating manufacturers,” says Van G. Miller, founder and CEO of The VGM Group. “I strongly believe this partnership will have positive effects on our people, our business and the business of our members, and the entire home health care industry for many years to come.”


Group To Educate Legislators on COPD
Concerned with the more than 13 million Americans diagnosed with some form of chronic obstructive pulmonary disease (COPD), Idaho Republican Senator Mike Crapo in April announced the founding of a congressional caucus dedicated to furthering awareness of the disease’s risks and promoting policies to improve the lives of COPD patients.

Crapo will cochair the Congressional COPD Caucus with Representatives John Lewis (D-Ga) and Cliff Stearns (R-Fla). The caucus will partner with a broad coalition of physician, patient, and home care organizations, including the American College of Chest Physicians, the American Association for Homecare (AAHomecare), Alpha-1 Association, American Thoracic Society, American Lung Association, and the American Association for Respiratory Care.

“The American Association for Homecare and its members join Senator Crapo in taking every necessary step to ensure that COPD patients are receiving the best of care,” says Kay Cox, CEO of AAHomecare.

COPD is an umbrella term used to describe the airflow obstruction that is associated primarily with emphysema and chronic bronchitis. It is the fourth leading cause of death and disability in the United States, according to the American College of Chest Physicians.


 Rehab Council Organizes in Texas
Spurred by the state’s tarnished industry image resulting from fraudulent power mobility dealing and by potential budget cuts in Medicaid and Medicare funding, a group of Texas businesses and disability advocates has created a council for high-tech rehabilitation equipment consumers, providers, and manufacturers. Called the Greater Texas Rehab Providers’ Council (TXRPC) and based in Houston, the group will serve as a forum to exchange information and ideas on issues that confront this segment of the health care market specifically in Texas.

Statewide issues such as the reorganization of the Texas Health and Human Services Commission, the transition to a new claims processing agent for the Texas Medicaid Program, and the implementation of the new HIPAA standardized billing codes present unique challenges,” writes Ron Kieschnik, president of the TXRPC, in an open letter to Texans.

The TXRPC hopes to provide a collective voice of stakeholders in legislative, budget, and agency issues. Kieschnik says he hopes the coalition will complement the national and regional activities of the American Association for Homecare and the Medical Equipment Suppliers Association—the HME organization that represents Arkansas, Louisiana, Oklahoma, and Texas.

The council will sponsor workshops, educational seminars, and roundtable discussions. Membership is open to interested medical professionals, persons with disabilities, and advocacy groups as well as equipment dealers and manufacturers. For more information, visit www.txrpc.org.


News in Brief

United Seating and Mobility Hires New Specialists
United Seating and Mobility recently welcomed two more seating and mobility specialists to its staff. Tim Perkins joined the Portland, Ore, branch of the rehabilitation technology service and delivery company. Mike Surratt has joined the company’s Denver branch. Surratt comes with more than 12 years of experience in the rehabilitation industry. United Seating and Mobility also has Colorado branches in Pueblo, Alamosa, and Colorado Springs.

Infusion Companies Unite
In April, Woodhaven Health Services of Baltimore and Severn Healthcare of Columbia, Md, merged their infusion therapy businesses. The new business will be operated as Severn Healthcare, a Woodhaven Health Services Company.
     “Combining Severn Healthcare’s market presence and size with Woodhaven’s resources creates a solid platform for regional growth,” says William Hawk, who founded Severn Healthcare in 1996.
     Severn Healthcare claims to be the largest provider of intravenous drug therapy in Maryland. Woodhaven Health Services is a provider of pharmacy services.

Mid-Atlantic Infusion Companies Consolidate
HomeChoice Partners Inc, a provider of infusion therapy services throughout Virginia and northeastern North Carolina, in April completed the acquisition of PrimeCare Infusion Services Inc of Augusta, Ga. Terms of the acquisition were not disclosed.
     Mary Ann Cope, RPh, president and CEO of HomeChoice, said that Joseph W. Boyd, RPH, former president of PrimeCare, has been named vice president of business development for HomeChoice and will manage the company’s operations in Georgia and South Carolina.


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