Accreditation Problems on the Rise for Bidding Suppliers

Suppliers who suspect their area may be included in the next round of competitive bidding should get accredited ASAP, say accreditation agencies.


As suppliers in the first 10 MSAs now scramble to get accredited, all kinds of problems have developed. For example, in their mad dash to submit the necessary paperwork, surveyors have noted, many suppliers "are not submitting the appropriate information" and cannot be surveyed until they do.


Additionally, accreditation agencies have seen an increase in the number of suppliers who submit the appropriate paperwork, but fail their surveys.


Remember, accreditation is more that just a manual stating your quality standard policies and procedures. It is principles that must be woven into the fabric of your business.

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OIG Implies Suppliers Have No One to Blame but Themselves

The Office of Inspector (OIG) conducted random supplier site visits in 2001. Of 169 DMEPOS suppliers sampled, 10 did not exist at their business address, yet they billed Medicare almost $393,000 in the two months AFTER CMS determined that they were absent. Fast forward to 2007 and CMS-1270-F - - mandatory accreditation. Make sense now?

DME Winning Contract Supplier Profitability NOT a CMS Concern

This question was asked at one of the CMS bidder’s teleconferences conducted last week

Question – What if the price of a product goes sky high and exceeds the contract reimbursement? Are you allowed to refuse the patient based on profitability?

Answer – No, a contract supplier MUST accept assignment.

At least five winning suppliers are anticipated per competitive bid area.

At least five winning suppliers are anticipated per competitive bid area.

The supplier capacity is calculated to ensure that the expected beneficiary
demand, in the CBA for the items in the product category, is met. Suppliers’
estimated capacity will be limited to 20% to ensure that at least five suppliers
are awarded a contract, if at least five eligible suppliers submit bids within the
product categories. Remember that 30% of the winning suppliers must be small providers.

That is 1.5 small suppliers right? Any one-half suppliers bidding in the first round?

LOL

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