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Acceptable To Medicare: A Case Study

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Do you have some durable medical equipment, prosthetics, orthodics or associated supplies (DMEPOS) in your medical office supplied by a home medical equipment (HME) supplier? Such an arrangement is often called a loan or consignment closet. With this type of arrangement, the equipment and supplies are owned by the HME supplier who does not pay rent for the space those items take up. Instead, the supplier bills Medicare or a private insurance company when a patient is provided with one or more items kept at the office. The arrangement benefits the medical practitioner by providing a ready selection to meet patient needs. Is Loan/Consignment Acceptable to Medicare? The loan/consignment closet arrangement is currently legally and acceptable …show more content…

The change was supposed to go into effect on March 1, 2010. However, in early 2010, the CMS recinded this change. While the change did not go through, many experts believe the CMS will likely reissue this change in the future. What Changes Were …show more content…

In current arrangements, the HME supplier billed Medicare whenever a patient received an item from the inventory. With the proposed changes, the medical provider would bill Medicare using their own billing number for DMEPOS. They would then reimburse the supplier. The third provision addressed services concerning the fitting and use of the item. In current arrangements, these services are often provided by a person paid by the HME supplier. If the changes go into effect, this would no longer be acceptable. These services would have to be provided by someone the practitioner paid. And they could not be provided by another DMEPOS supplier. The fourth provision addressed who the patient would contact in case of problems or questions with the DMEPOS. Today, most of those kinds of issues go directly to the HME supplier or manufacturer. With the proposed changes, those issues would go to the practitioner first. These provisions are geared to limit the role of the HME supplier to that of a vendor. Why Are These Changes Being

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