LAKE FOREST, Calif., July 28 /PRNewswire-FirstCall/ -- Apria Healthcare Group Inc. , a leading provider of integrated home respiratory medications, oxygen and other respiratory services, commented today on the Center for Medicare and Medicaid Services' (CMS) publication of the Notice of Proposed Rule Making (NPRM) for the 2005 Medicare physician fee schedule. This annual fee schedule includes information about Medicare Part B-covered respiratory medications. The respiratory medications, or inhalation therapies, are commonly prescribed by family practitioners and pulmonary specialists for treatment of the symptoms associated with Chronic Obstructive Pulmonary Disease (COPD), the fourth leading cause of death in the United States.
Lawrence M. Higby, Apria's President and Chief Executive Officer, said, "We have been working cooperatively with CMS, the General Accounting Office (GAO), members of Congress and legislative staff to further educate them on the direct and indirect costs that are incurred when providing Medicare beneficiaries with respiratory medications at home. We appreciate that CMS has recognized the potential access-to-care issues in 2005 and the various services we provide in conjunction with the drug therapies. Unfortunately, as CMS acknowledged, the six percent add-on to the average sales prices (ASP) published in the NPRM would not begin to cover the costs of providing pharmacy, compounding, patient management, delivery, billing and other ancillary services. We are hopeful that a potential dispensing fee or other service fees mentioned in the NPRM will be sufficient to pay for these non-drug costs. A reasonable dispensing fee is absolutely crucial to maintain Medicare beneficiaries' access to respiratory medications."
In recent years, two industry studies were conducted by The Lewin Group in conjunction with the American Association for Homecare (AAHomecare) to identify the costs associated with the provision of respiratory drug therapies," said Mr. Higby. "Another AAHomecare study, the largest to date, will be completed by Muse & Associates within a month. In addition, the GAO is conducting a similar analysis. Hopefully, CMS will use the data from these studies to establish a reasonable dispensing or other service fee that will enable us to continue to provide respiratory medications to Medicare beneficiaries."
"If a reasonable service fee component is not developed and announced by CMS within the next few months, Apria Healthcare will regrettably have to stop accepting referrals for new Medicare patients who require respiratory medications," stated Mr. Higby. "We would, of course, continue servicing our patients who are covered by third party insurers with reimbursement levels that reflect our service costs."
Apria provides home respiratory therapy, home infusion therapy and home medical equipment through approximately 455 branches serving patients in 50 states. With nearly $1.4 billion in annual revenues, it is the nation's leading homecare company.
This release may contain statements regarding anticipated future developments that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Results may differ materially as a result of the risk factors included in the Company's filings with the Securities and Exchange Commission and other factors over which the Company has no control.
For further information, please contact: Lawrence M. Higby, Chief Executive Officer, +1-949-639-4960, or Amin I. Khalifa, Chief Financial Officer, +1-949-639-4990, both of Apria Healthcare Group Inc.
Apria Healthcare Group Inc.CONTACT: Lawrence M. Higby, Chief Executive Officer, +1-949-639-4960, orAmin I. Khalifa Chief Financial Officer, +1-949-639-4990, both of ApriaHealthcare Group Inc.
Web site: http://www.apria.com/
