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CEO Doug Harrison responds to Business Week article, "Clash over Wheelchairs in Health-Care Reform"
We are concerned that data from an incomplete Health and Human Service Dept. Office of Inspector General (OIG) report was cited in this story 
. The OIG acknowledges that their report on acquisition costs for power wheelchairs omitted substantial costs required by suppliers doing business with the Medicare program. The OIG did not consider costs for delivery, documentation for medical necessity, home assessments, billing, accreditation, adhering to state and federal requirements and other costs. So it's not surprising the OIG claimed suppliers reap a 75% gross margin on sales. The actual net profit is less than 5%, and after absorbing a 36% cut in the reimbursement schedule over the last four years, suppliers are continuing to go out of businesses or no longer offer power wheelchairs. Clearly, the OIG report should have been more comprehensive. We are very disappointed that the OIG released misleading information, which is a disservice to American taxpayers, as well as Medicare beneficiaries who will have an increasingly difficult time improving their mobility if the cuts continue.
Sincerely,
Doug Harrison, CEO and Founder The SCOOTER Store
Oct 2, 2009 4:05 PM GMT
