A week after Invacare, Elyria, Ohio, chose to stop selling power wheelchairs to The Scooter Store, organizations such as NRRTS and NAIMES issued press releases supporting Invacare’s decision. According to Invacare officials, the move was a response to a Scooter Store letter to Congressional offices advocating that legislators should not carve complex rehabilitation out of competitive bidding. “This is the most defining moment we’ve had in our industry on rehab products,” said Lou Slangen, senior vice president, global market development for Invacare. “We have parted ways with the Scooter Store. We don’t agree with their approach. We are looking for all other providers to support us and switch business from the manufacturers and suppliers that enable the Scooter Store to do this.”
Doug Harrison [pictured, left], CEO and founder of The Scooter Store, agreed that Invacare’s move was the result of legislative differences, but he also attributed the break to business issues. “We had a difference of opinion. They would have liked to have been a bigger part of our sales, a bigger part of our growth strategy,” said Harrison. “On everything else regarding competitive bidding, we are perfectly in line with everything Invacare is trying to do.”
Among organizations willing to take a public stance, support materialized behind Invacare. In a letter to “all members and friends” of the National Registry of Rehabilitation Technology Suppliers (NRRTS), Executive Director Simon A. Margolis wrote: “NRRTS applauds Invacare Corporation’s decision to no longer sell power wheelchairs to the Scooter Store. We strongly urge all other manufacturers who do business with suppliers of complex rehab products to do the right thing and adopt a similar policy.”
The National Association of Independent Medical Equipment Suppliers (NAIMES) joined the chorus and issued its own endorsement of the Invacare decision. “This decision sends a clear message that Invacare places consumer care and the well being of our nation’s independent supplier community ahead of just making money or gaining market share,” wrote Wayne E. Stanfield [pictured, left], president and CEO of NAIMES in a letter to members. “In view of the current economic picture, it was no doubt a hard financial choice to make.”
For his part, Scooter Store CEO Harrison says that he is not for competitive bidding. “We don’t think the current so-called competitive bidding is going to be good for anybody. We think it is a mess,” said Harrison. “I think all power mobility should be carved out of competitive bidding. The benefit is grossly under utilized right now.
“We are opposed to NCART [National Coaltion for Assistive and Rehab Technology] and others saying only carve out rehab—that is, group two single power and above,” continued Harrison. “We are not in support of rehab being carved out at the expense of geriatric mobility. Whatever minor difference that is—Invacare was trying to use it to sell more Invacare product.”
The president of US Rehab, the rehab specialty network of the VGM Group, sent a message last week asking AAHomecare’s Rehab and Assistive Technology Council (RATC) to reconsider the involvement of Scooter Store representatives on the council. “With the ongoing concerns of competitive bidding, fee reductions, coding issues, coverage criteria, and documentation problems, it is imperative that our industry carries one voice and one message to the Hill,” wrote Jerry Keiderling of VGM. “The Scooter Store’s agenda is clearly different than the rest of the industry.”
“In saying that all power mobility ought to be carved out, we have a lot of people throwing stones at the Scooter Store,” counters Harrison. “Are they [Invacare] taking advantage of this situation? Sure, but they are going to try to take advantage of every situation to encourage more people to buy Invacare products."
Just prior to Friday Report's deadline, on Thursday, January 24, The Scooter Store sent a letter to DME state association leaders. The letter, signed by Mark Leita, senior director of public affairs, again addresses the carve-out issue. The following is a partial excerpt:
• In recent weeks, some segments of the power mobility industry have misinterpreted the legislative priorities of The SCOOTER Store. We apologize for any miscommunications on our part about our legislative agenda on Capitol Hill...
• We have, however, voiced our opinion on what we believe is best for the industry and Medicare beneficiaries. Specifically, we informed a handful of lawmakers about our concerns regarding legislation that would "carve out" complex rehabilitation equipment and remove it from competitive bidding. Our position has always been that all power mobility equipment should be removed from competitive bidding; we don't see much benefit in separating this small group of Medicare beneficiaries from a larger group of seniors and people living with disabilities...
• Needless to say, the Scooter Store is astonished that our position is now being characterized as dividing the industry. We want members of your organization to know that nothing is further from the truth. We simply believe there is strength in numbers and, more importantly, that all Medicare beneficiaries in need of power mobility deserve to have us fighting on their behalf.