Invacare — Medicare DMEPOS Competitive Bidding Program Open Door Forum Series (September 2009)
19 slides from Invacare's conference presentation, Sep 22, 2009
Slide 1: Medicare DMEPOS Competitive Bidding Program Open Door Forum Series
Medicare DMEPOS Durable Medical Equipment, Prosthetics, Orthotics and Supplies Competitive Bidding Program Open Door Forum Series Financial Documentation Plus Small Supplier Considerations September 22, 2009 2:00pm – 3:00pm ET 1
Slide 2: Financial Documentation & Small Suppliers Agenda
Financial Documentation & Small Suppliers Agenda Small Supplier Considerations How to Report Expansion Plan How to Report Capacity Financial Documents Covered Document Review Process Resources 2
Slide 3: Small Suppliers
Small Suppliers Defined as a supplier that generates gross revenues of $3.5 million or less in annual receipts including Medicare and non-Medicare revenue (42 CFR 414.402) Small supplier considerations 3
Slide 4: Small Supplier Target
Small Supplier Target Target for small supplier participation: • Set target number by multiplying total number of qualified suppliers whose composite bids are at or below the pivotal bid by 30 percent • Identify number of qualified small suppliers whose composite bids are at or below the pivotal b
Slide 5: Networks
Networks Members must meet small supplier definition AND be unable to service entire CBA independently • Certification statement Cannot exceed 20 percent market share at bidding Limited to 20 members Must form legal entity • Agreement in place prior to submitting bid • Agreement submitted wi
Slide 6: Networks
Networks Each member must meet eligibility requirements: • Accredited • Licensed • Bonded (if applicable) • Active NSC number Each member may only join one network per CBA per product category Each member’s financial documents must be submitted together in one package 6
Slide 7: Expansion Plan
Expansion Plan Examples of factors to be addressed in expansion plan include: • Staff • Financial • Facilities • Inventory Control • Distribution Methods • Subcontractors 7
Slide 8: Capacity
Capacity Estimated Capacity and Bid Amount Worksheet Report capacity on Form B in DBidS (online DMEPOS bidding system) 8
Slide 9: Financial Documents
Financial Documents One year of documents (most recent year prior to date bid submitted) • Financial statements: • Income Statement • Balance Sheet • Statement of Cash Flow • Tax return (revenue and expense portion) Credit report and numerical score (less than 90 days old) 9
Slide 10: Financial Documents
Financial Documents Credit Report and Credit Score • Less than 90 days old • Report AND numerical score • Prepared by: Dun & Bradstreet Experian Equifax TransUnion Standard & Poor’s 10
Slide 11: Financial Documents
Financial Documents New suppliers (less than one year) • Appropriate combination of actual or pro forma data to equal one year • Do not aggregate or combine the actual and pro forma financial statements 11
Slide 12: Financial Documents
Financial Documents Submit documents in loose page format Include bidder number on each page Only submit required documents Ensure statements and tax extract are for same accounting time period 12
Slide 13: Financial Documents
Financial Documents Prepare financial statements on the accrual or cash basis of accounting Ensure data on financial statements total correctly Submit package for each bidding entity 13
Slide 14: Financial Documents
Financial Documents Do not submit a part of a tax return or forms submitted to federal agencies for other purposes as a substitute for a required financial statement Do not submit the entire tax return Do not submit self calculated ratios in place of financial documents 14
Slide 15: Covered Document Review
Covered Document Review Required by Medicare Improvements for Patients and Providers Act of 2008 Only financial documents received by the Covered Document Review Date (CDRD) will be reviewed to determine if any financial documents are missing Review is only to determine if documents are missin
Slide 16: Covered Document Review
Covered Document Review CDRD – later of 30 days before close of bidding or 30 days after start of bidding Target CDRD: November 21, 2009 (actual date announced when bidding opens) Only suppliers that submit financial documents by the CDRD will have review for missing documents 16
Slide 17: Covered Document Review
Covered Document Review Bidders notified of any missing documents within 45 days after CDRD Bidders have 10 business days from date of notice to submit missing documents - can only submit missing documents NOT ALLOWED: Changes to bid amounts or other changes to bid after bidding ends; submitti
Slide 18: Resources
Resources • Competitive Bidding Implementation Contractor (CBIC) Service Center: (877) 577-5331 • CMS Website: www.cms.hhs.gov/dmeposcompetitivebid • CBIC Website: www.DMECompetitiveBid.com • NSC Website: www.PalmettoGBA.com/NSC 18
Slide 19: Feedback and Comments
Feedback and Comments Send feedback and comments about this Special Open Door Forum to: cbic.admin@PalmettoGBA.com 19