tci Medicare Compliance & Reimbursement - 2005 Issue 7

DME: Coming Oxygen Cuts Could Hurt Industry

But DME suppliers are no stranger to fiscal painOxygen cuts to Federal Employee Health Benefit Plan levels will be a big burden on durable equipment suppliers. But the industry has seen rougher payment cuts before. In the late 1990s, it underwent massive 30 percent cuts at the hands of the Balanced Budget Act.But this coming 10 to 20 percent cut "is still going to hurt," predicts Harold Davis, respiratory specialist for  the VGM Group's Nationwide Respiratory division.    Suppliers that are already on tight margins will be likely to pull out of business lines that require...

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