Hanger & NovaCare : CORRECTION
Description
Collection
Title:
Hanger & NovaCare : CORRECTION
Text:
Wayne,
I just wanted to correct a misinterpretation of the Wall Street
Journal's article on the Hanger/NovaCare acquisition. You interpreted that
one of the reasons for the sale of NovaCare was due to problems associated
with Medicare reimbursement in prosthetics. This assumption is untrue.
NovaCare's orthotic and prosthetic division is very successful (and
profitable). This division represents only a fraction (less than 1/3) of
NovaCare's overall gross business. Of course NovaCare has the same
difficulties with Medicare and other third party payors as the rest of the
O&P industry, but they are better equipped to handle problems that may arise.
NovaCare has an extensive internal compliance program, coding committees and
other mechanisms to deal with the complexities of reimbursement.
However, NovaCare's contract rehabilitation division and outpatient
rehabilitation division have experienced difficulties in dealing with
Medicare reimbursements, primarily due to the PPS (perspective payment
system). This problem is not exclusive to NovaCare, look at HealthSouth or
any other major player in the rehabilitation industry. This correction can be
backed up by numerous articles posted on the web or in circulation in many
major newspapers over the last six months.
NovaCare's orthotic and prosthetic division is very strong and is the
industry leader in education and clinical programs. Merging the strengths of
NovaCare into the Hanger organization will produce a company that will
stronger than the sum of its parts.
Sincerely,
Troy Farnsworth, CP
Eastern Regional Manager
NovaCare Upper Extremity Prosthetic Program
Philadelphia, PA
I just wanted to correct a misinterpretation of the Wall Street
Journal's article on the Hanger/NovaCare acquisition. You interpreted that
one of the reasons for the sale of NovaCare was due to problems associated
with Medicare reimbursement in prosthetics. This assumption is untrue.
NovaCare's orthotic and prosthetic division is very successful (and
profitable). This division represents only a fraction (less than 1/3) of
NovaCare's overall gross business. Of course NovaCare has the same
difficulties with Medicare and other third party payors as the rest of the
O&P industry, but they are better equipped to handle problems that may arise.
NovaCare has an extensive internal compliance program, coding committees and
other mechanisms to deal with the complexities of reimbursement.
However, NovaCare's contract rehabilitation division and outpatient
rehabilitation division have experienced difficulties in dealing with
Medicare reimbursements, primarily due to the PPS (perspective payment
system). This problem is not exclusive to NovaCare, look at HealthSouth or
any other major player in the rehabilitation industry. This correction can be
backed up by numerous articles posted on the web or in circulation in many
major newspapers over the last six months.
NovaCare's orthotic and prosthetic division is very strong and is the
industry leader in education and clinical programs. Merging the strengths of
NovaCare into the Hanger organization will produce a company that will
stronger than the sum of its parts.
Sincerely,
Troy Farnsworth, CP
Eastern Regional Manager
NovaCare Upper Extremity Prosthetic Program
Philadelphia, PA
Citation
“Hanger & NovaCare : CORRECTION,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 27, 2024, https://library.drfop.org/items/show/211465.
