Competitive Bidding: Where to Begin
http://www.hmeaccreditationresource.com/articles/10/1/Competitive-Bidding--Where-to-Begin/Page1.html
Julie Bowman
Julie A. Bowman, RRT, RCP is the founder and president of HME Solutions, LLC, which offers HME business consulting in the areas of Operations Strategy, Business Execution and Accreditation.
She is the author of "The Keys to Best Practice Operations for the HME Business Owner", a book of valuable ideas to operate a more efficient business in these ever changing times. She is the co-author of the "HME Business Builder", an industry newsletter.
By Julie Bowman
Published on 04/15/2007
Following the release of the final rule on April 2, the HME industry is off and running hard to learn the rules and meet the deadlines for successful bidding. To avoid wasting any time, suppliers need to know where to begin focusing their efforts.
This article provides some important “to do’s” to prepare your company for competitive bidding.
Competitive Bidding: Where to Begin
<p>
Following the release of the final rule on April 2, the HME industry is off and running hard to learn the rules and meet the deadlines for successful bidding. To avoid wasting any time, suppliers need to know where to begin focusing their efforts.
</p><p>
Here are some important “to do’s” to prepare your company for competitive bidding:
</p><ol><li><b>Apply for accreditation.</b> CMS has stated that a company will have to be accredited or be in the process of accreditation in order to bid. Remember that it takes 3-6 months to prepare for accreditation. All winning bidders will have to be accredited to participate as a winning bidder.
</li><li><b>Update all company information</b> with the National Supplier Clearinghouse using the new 855S form. The new form requests more information than before.
</li><li><b>Obtain an NPI number.</b> The deadline for obtaining NPI numbers is May 23rd. This is not a competitive bidding requirement, but it is a requirement to continue to bill CMS after the May deadline.
</li><li><b>Register with CMS immediately</b> to obtain a user name and password which will allow your company to access their electronic bidding forms. This can be accomplished <a target="_blank" href="https://applications.cms.hhs.gov">here</a>. On that webpage, click on “Enter CMS Applications Portal”, then click on the “Account Management” tab near the top, and then click on “New User Registration”. Remember, in order to receive the user name and password, all information must be current at the National Supplier Clearinghouse and match the information submitted for the user name.
</li><li><b>Determine now which product or products you wish to bid.</b> The bidding process will begin in late April and end 60 days later (around the end of June).
</li><li><b>Check all patient zip codes</b> to determine how much of the company’s business is affected by competitive bidding. The beneficiary’s address is the guiding factor in whether a company is a part of the 10 chosen MSAs. If a company is providing service to customers who live in one of the 10 MSAs, they must win the bid in order to add additional customers in that area.
</li><li><b>Stay realistic when calculating your bid.</b> Remember that CMS will also review whether they feel a company is capable of providing the product for the price bid. The experts are advising that trying to have the lowest bid will not necessarily achieve a winning bid.
</li></ol><p>
Now is the time to keep abreast of current information available via the CMS websites and their affiliated publications. The most reliable and comprehensive information is available at the CMS competitive bidding website, <a target="_blank" href="http://www.dmecompetitivebid.com">www.dmecompetitivebid.com</a>. The HME supplier will benefit from thoroughly reading this information and then formulating their business plan to ready themselves for the bidding process.
</p><p>
Be sure to seek the advice of experts and ask questions about any unfamiliar language or business practices. Take the time to read articles in the trade journals, and sign up for a teleconference or e-conference on competitive bidding. There are several already being advertised.
</p><p>
Competitive bidding can be handled effectively by seeking good advice, streamlining your company for maximum efficiency, and correctly assessing the fully burdened costs of each product bid.
</p>
Following the release of the final rule on April 2, the HME industry is off and running hard to learn the rules and meet the deadlines for successful bidding. To avoid wasting any time, suppliers need to know where to begin focusing their efforts.
</p><p>
Here are some important “to do’s” to prepare your company for competitive bidding:
</p><ol><li><b>Apply for accreditation.</b> CMS has stated that a company will have to be accredited or be in the process of accreditation in order to bid. Remember that it takes 3-6 months to prepare for accreditation. All winning bidders will have to be accredited to participate as a winning bidder.
</li><li><b>Update all company information</b> with the National Supplier Clearinghouse using the new 855S form. The new form requests more information than before.
</li><li><b>Obtain an NPI number.</b> The deadline for obtaining NPI numbers is May 23rd. This is not a competitive bidding requirement, but it is a requirement to continue to bill CMS after the May deadline.
</li><li><b>Register with CMS immediately</b> to obtain a user name and password which will allow your company to access their electronic bidding forms. This can be accomplished <a target="_blank" href="https://applications.cms.hhs.gov">here</a>. On that webpage, click on “Enter CMS Applications Portal”, then click on the “Account Management” tab near the top, and then click on “New User Registration”. Remember, in order to receive the user name and password, all information must be current at the National Supplier Clearinghouse and match the information submitted for the user name.
</li><li><b>Determine now which product or products you wish to bid.</b> The bidding process will begin in late April and end 60 days later (around the end of June).
</li><li><b>Check all patient zip codes</b> to determine how much of the company’s business is affected by competitive bidding. The beneficiary’s address is the guiding factor in whether a company is a part of the 10 chosen MSAs. If a company is providing service to customers who live in one of the 10 MSAs, they must win the bid in order to add additional customers in that area.
</li><li><b>Stay realistic when calculating your bid.</b> Remember that CMS will also review whether they feel a company is capable of providing the product for the price bid. The experts are advising that trying to have the lowest bid will not necessarily achieve a winning bid.
</li></ol><p>
Now is the time to keep abreast of current information available via the CMS websites and their affiliated publications. The most reliable and comprehensive information is available at the CMS competitive bidding website, <a target="_blank" href="http://www.dmecompetitivebid.com">www.dmecompetitivebid.com</a>. The HME supplier will benefit from thoroughly reading this information and then formulating their business plan to ready themselves for the bidding process.
</p><p>
Be sure to seek the advice of experts and ask questions about any unfamiliar language or business practices. Take the time to read articles in the trade journals, and sign up for a teleconference or e-conference on competitive bidding. There are several already being advertised.
</p><p>
Competitive bidding can be handled effectively by seeking good advice, streamlining your company for maximum efficiency, and correctly assessing the fully burdened costs of each product bid.
</p>