In brief: Bidding study

From: HME News

WATERLOO, Iowa – Home medical equipment revenues in Iowa could drop by $99.4 million once competitive bidding prices are implemented in 2016, according to a new study. The number of HME providers will also fall, says Ken Brown, a professor at the University of Northern Iowa, who put together the study for The VGM Group. The study also found that, as HME providers go out of business, the impact of competitive bidding will have a ripple effect. Companies that provide services to HME providers, including VGM and Medline, both of which are located in Iowa, will see their client base reduced, forcing them, in turn, to reduce operations. Losses from those two companies alone could total more than $60 million in lost output and more than 400 jobs, according to the study. “Some members of Congress mistakenly believe there would be no impact in Iowa, but this report refutes that view,” stated Mike Mallaro, CFO of VGM, in a release. The study concludes that, overall, competitive bidding is expected to result in more than $200 million in reduced output and more than 2,500 jobs lost in the state of Iowa. Read the study here: http://www.vgm.com/files/PDF/Impact-Report-v2.pdf

Leave a Reply