RE:RBC ReactionIn the long term, the OIG report will speed the determination of the medical appropriateness of NIV. With Covid, attention has focused on whether invasive vents have done more harm than good and many jurisdictions have instituted protocols preferring NIV treatment patients.
The Viemed published study on patient outcomes using NIV was strategic and authoritative guaranteeing robust growth in the NIV treatments which have the cost savings advantage of home delivery.
Having read the OIG report, it is clear that this has been in the works for many months. Viemed's response was sent in Sept 2020. So they must have received the initial report more than a year ago. The only thing new is that the OIG is sticking to its initial report.
CMS will either ignore it or make some cosmetic changes to its protocol for reimbursement in the future. Perhaps there will be new wording of physician orders, alignment of standards, billing codes and compliance. So the OIG report will help force certainty for this business. Removing the uncertainty will only help with the investment community. VMD can adapt to these changes but small players might find them burdensome.
If NIVs are included in the next round of bidding, that is when VMD can hit a home run because it will likely result in demonstrating no cost savings. In this regard, VMD's focus on rural areas was again a strategic move.
GLTA