The Statement of Support
THE STATEMENT OF SUPPORT
The undersigned has been made aware of the Medicare (CMS) plans for the institution of a system of Competitive Bidding for 10 categories of Durable Medical Equipment, to commence in April of 2008, in 10 designated Competitive Bidding Areas (CBA’s), with another 50 CBA’s to commence in 2009.
Medicare has acknowledged that its plans will result in the virtual elimination of the vast majority of small suppliers currently serving patients in those areas. That would force several thousand small businesses to close down in the first phase (2008) with ten times that number to close down in the second phase (2009).
The Small Business Administration has been advised of the situation and is actively seeking to work with Medicare to seek appropriate remedies. However results of that intervention remain uncertain.
Failure to remedy the situation will certainly result in some or all of the following, with absolutely no discernible reduction in costs to Medicare:
1. The level of service to patients before and after equipment is received, will materially decline as a result of far fewer suppliers and reduced payments
2. The physician’s choice of suppliers will be reduced by 95%-99%, resulting in the absence of competition among suppliers for business, with a resulting material drop in service to the patient.
3. The Emergency Response Potential from DME Providers in all areas will be dramatically reduced, with all the adverse consequences to patients and other hospital and emergency response entities such an outcome will entail. Very serious consequences to patients including potential deaths from lack of necessary oxygen supplies may well result.
4. Adverse economic consequences for entire areas as well as for individual businesses and their employees, suppliers, lenders, etc., will result.
I understand your organization is working diligently in all relevant areas to remedy the situation. and that public support is essential to remedying the situation.
This Statement of Support is being made to inform you that I (we) agree with you, and are signing this statement to assist you in your task.
Sign the Statement of Support
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