Congressman Pleased to have Henry Ford Health System CEO to Testify at Hearing

Washington, DC – Congressman John D. Dingell (D-MI15) made the following remarks during the Subcommittee on Health’s hearing today “Medicare’s Competitive Bidding Program for Durable Medical Equipment:  Implications for Quality, Cost and Access.”  At the hearing testifying at the request of Congressman Dingell on behalf of Henry Ford Hospital in Dearborn, Michigan, was CEO Nancy Schlichting, who spoke about how Dingell’s bill, H.R. 6095, would help Michigan hospitals and protect jobs in Michigan.  The Congressman made the following statement at the hearing today:

“Competitive bidding has proven to be a very controversial topic.  Not just among Members of Congress, but also among suppliers, beneficiaries, and providers across the country.  In the midst of all the back and forth, I am sure all sides can agree on two points:

• The pricing and integrity issues in the Medicare DME are a cause for concern and need to be addressed for the sake of the fiscal future of Medicare and to hold down costs for beneficiaries; and

• When legitimate problems with implementation of the competitive bidding program are identified, the Congress has acted to address those problems.

“Today’s hearing will give us a good opportunity to assess the current state of the Medicare DME competitive bidding program—its impact on the cost, quality, and access, lessons learned, and opportunities for improvement.  We should have a clearer understanding of what, if any, changes should be made to the program as it is expected to expand. 

“Though this morning’s hearing is not specific to any particular bill, I must mention legislation I introduced last month to address a very legitimate concern raised by hospitals in Michigan and others throughout the country.  Many hospitals have developed their own DME companies in an effort to better integrate hospital care and support the efficient management of the discharge process.  I am concerned that the competitive bidding program threatens their ability to continue to operate. 

“H.R. 6095 would allow hospital based DME providers to continue serving their entity’s patients, while being compensated at the competitively bid rate.  Let me make two things abundantly clear:

• H.R. 6095 would require these hospital-based DME providers to pay those prices negotiated through the competitive bidding process; and

• These providers will only be allowed to supply the patients of their hospital or affiliated physicians.

“H.R. 6095 enjoys the support of the American Hospital Association and the Premier Healthcare Alliance.  Mr. Chairman.  I ask unanimous consent to have letters from AHA and Premier in support of H.R. 6095 inserted in the hearing record.

“I welcome Nancy M. Schlichting to the Committee this morning.  Nancy is the very capable President and Chief Executive Officer of the Henry Ford Health System--one of the nation's leading health care providers.  For many years, Henry Ford has been committed to improving the health and well-being of a diverse Michigan community.  Nancy, and the Henry Ford Health System, has been a valuable resource to me on so many important health issues, and I am sure she will prove herself just as valuable to the Members of this Committee on the important issue before us.”