RE:RE:CB - growth versus profitabilityThanks besttobe - very useful information and excellent analysis! Your questions provide a great summary of potential outcomes to be considered and assessed. Decisions, decisions ...
Any idea when the House will make a decision regarding the SMART Act?
besttobe wrote: Miningfungi wrote "This is incomprehensible to the average investor - "besttobe" or "lscfa", while CB may increase VMD's growth, will it increase its earnings, if not now, when? "
My opinion
I agree, there are so many variables no one can tell where VMD will land once competitve bidding is complete. One thing is for sure, is there will be less providers and there will be rate cuts, but not as drastic as last time. (see purpose of competitive bidding below)
Anyway..the decision is up to you what to do.
Just to let you know, I am mainly an active trader of speculative stocks. I weigh my odds based on a lot of DD. I am not a buy and hold type, for this type of stock. Short term...
I guess based on your own DD, you have ask yourself a couple questions.
1. What happened to PHM share price, last round of cuts.
2. What happened to VMD's share price when it was announces NIV vents would be incluses in this round of bidding?
3. What would happen to VMD's share price if the house passes the bill to not include NIV's in this round of bidding?
4. Is competitive bidding good for VMD, thus the share price.
.
Anyway, best to you, in what ever you decide.
Program Overview
The DMEPOS Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA). The statute requires that Medicare replace the current fee schedule payment methodology for selected Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) items with a competitive bid process. The intent is to improve the effectiveness of the Medicare methodology for setting DMEPOS payment amounts, which will reduce beneficiary out-of-pocket expenses and save the Medicare program money while ensuring beneficiary access to quality items and services.
Under the program, a competition among suppliers who operate in a particular competitive bidding area is conducted. Suppliers are required to submit a bid for selected products. Not all products or items are subject to competitive bidding. Bids are submitted electronically through a web-based application process. Bids are evaluated based on the supplier’s eligibility, its financial stability and the bid price. Contracts are awarded to the Medicare suppliers who offer the best price and meet applicable quality and financial standards. Contract suppliers must agree to accept assignment on all claims for bid items and will be paid the single payment amount.