Competitive Bidding Will Cost More Than 100,000 Jobs

Summary:  The expanded competitive bidding program, proposed in up to 100 U.S. metropolitan areas, is estimated to cost more than 100,000 jobs.  The selective contracting program will reduce the number of local DME providers by nearly 40%, and reduce the workforce in those 100 markets by more than 80,000.  The “domino effect” of destroying the infrastructure of the home medical equipment delivery model will bring job loss totals well over 100,000. 

CMS had disclosed in its regulatory analysis that the results of ensuing rounds are likely to yield results similar to those of the original round of bidding, which was delayed by the MIPPA Congressional action of 2008.  Utilizing the contract award data in conjunction with provider and demographic statistics provided by The Weeks Group, Inc., VGM analysts Mark Higley and Alan Morris projected likely product contract totals for each of the 100 markets.  “I’ve seen several prognostications that suggest up to 90% of suppliers would exit the market based on round one results.  I wanted to go about it a different way and determine CMS’ expectations for supply versus beneficiary demand,” said Morris.