Competitive Bidding Round 2:
I have been asked by our customers, friends and referral sources if we planned to bid in Round 2 of the Medicare program. The plan is to roll this out to 91 cities on 1/1/2013. In Texas, DFW was in Round 1 that began 1/1/2011, now Houston, Austin, & San Antonio will fall this summer.
My answer was NO; the paperwork to re- register our company, the time to bid on hundreds of line items and the fact we have no presence in these areas to support beneficiaries. CMS doesn’t think this is crucial to service; after all if one is awarded a contract the company can accept, reject or find subcontractors who will work on the cheap.
It has been almost a year since we lost out on select Medicare bid categories. Our 2011 Results: Sales & profits are up over 2010. We have seen more business in all segments of our company. When I tell people this they react with a smile and say wonderful, what’s your secret? As one social worker commented, it is slow and difficult to get a winning provider to respond in a timely manner. Many managers have been spoiled on quick deliveries for last minute discharges. Some of providers are balking at the small orders; delivery cost / setup and low margins create poor service.
Our secret, people and relationships, our great staff provide outstanding personal service. Many in the area know Wendy, Daniel and Lisa who have been with the company for years. In this business, many fees are set in contract or by the state, so competition hinges not on pricing but on service, contacts, associations and people skills.
Merry Christmas and a Healthy Happy New Year.
Tom Polston
Owner
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