tci Medicare Compliance & Reimbursement - 2005 Issue 19

DME: Analysis Casts Doubt On Competitive Bidding Savings

Economist raises concerns about anti-competitive aspects of CMS initiative.Durable medical equipment providers have a fresh piece of evidence when building their case against national competitive bidding.Ken Brown, an economics professor at the University of Northern Iowa in Cedar Falls, this month completed an analysis for Waterloo, IA-based VGM & Associates that raises substantial questions about the wisdom of instituting competitive bidding.While bidding will undoubtedly cut the number of firms serving beneficiaries, Brown's research challenges the idea that the initiative will dramatically cut Medicare costs, as its architects claim.Starting with the results of the Centers for...

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