Saturday, April 18, 2009

Homecare Medical Oxygen- Fuzzy Math

The Medicare Benefits related to oxygen were changed three years ago limiting collection of rental for respiratory oxygen equipment to 36 months for individual patients. There are a number of articles and talks discussing the direct impact of this new guideline on oxygen providers. And there is some fuzzy math being used. As mentioned by an old boss, figures lie……

It is purported by the Office of the Inspector General that 22% of Medicare patients receive care for over 36 months. Does this mean then that 22% of oxygen rentals just went away at the36 month point?

This is not likely.

Medicare does not account for 100% of rental billing. Even if it did, the only way January could account for 22% instant reduction would be for providers to have set up no new accounts since January 2006. Not.........

Yes. The Medicare guidelines are most certainly having a big impact on oxygen providers. But- there are homecare oxygen companies who continue to grow and very many who do not have business plans built around reliance on Medicare.