Wednesday, March 13, 2013

Cuts and more cuts

It's been a struggle for me to look past the latest bid rates with regards to round 2 of competitive bidding.  Although these rates won't really affect AOM until 2016, my heart goes out to the mom and pop companies located within the Competitive Bid Areas (Phoenix, Mesa, Glendale).  The accepted rates are worse than anyone ever imagined.  Oxygen is taking a 45% cut on top of a 2% sequester cut.   What company can cut their rates by 47 percent and still survive?   One thing is for sure, service is going to go to crap.   Companies are going to have to work with skeleton crews because they just aren't going to be able to afford enough staff to adequately cover the bid areas.  

I read this blog post today, which in a sad way has a very good point.   We're going to have to sit back and watch competitive bidding destroy the entire home care system before the govt realizes, "oh crap, this is a bad idea.  Diabetic supplies took a 75% hit!! Are you kidding me?   This is why we don't carry diabetic supplies.   The bid rate for 50 test strips is around $10.80,  our cost for strips is about $18.00.    Doesn't take the best economist to realize, uh I don't think we can afford that.

I think the majority of DME companies are in the business to help people.  Of course, being a mom and pop company our self,  I tend to route for the little guy.   With these rates, there aren't going to be many little guys left.  And you know what.........that sucks!    I love this job, I love the difference we get to make, but the politics overshadows all the good things.   I'm digging deep to focus on all the good things, but I also can't be naive to what is happening to the industry.   Were sticking it out and hoping that by the time these rates are to be applied nationwide (2016) the program will change.   It's got to.   There's just no way to give these patients the care they need for the pennies they want to pay.   I'm all for cutting costs, but goodness, we can't do what we do for free.  

For now, it is what it is.  We'll all hope and pray for the best.

Did you see that I went from like 8th in the challenge to something like 15th!   I can't believe I gained 3 lbs back!!   I've got to get to 165 this year.   We're planning on riding our bikes a lot over spring break so I'm hoping that will do the trick.  

The weather is gorgeous!  I saw a few of you walking at lunch today.  I'm not sure which dr.'s office it was but you guys were walking towards the Pinetop Safeway.   OSSM job!!!!

I'll be in Phoenix for the next two days then have to come back for little league tryouts on Saturday.  It's supposed to be a beautiful weekend which is something we're not used to when it comes to baseball tryouts. Usually were stuck practicing in the gym.   Looking forward to getting some good sun!!

Anyone gonna watch the fights this weekend?   Anyone want to bet against St. Pierre?   Looking forward to seeing Diaz get his butt kicked.

Well it's getting late and I still have to pack before we leave in the morning.  Hope you all have a great day.
God Bless!

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