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WHAT IS ACCREDITATION?
Accreditation is a process in which an independent organization evaluates a health care provider and certifies that the provider meets certain quality standards.  The oldest accrediting organization is the Joint Commission on Accreditation of Healthcare Organizations (JCAHO), but there are several others, including the Accreditation Commission for Health Care (ACHC) and the Community Health Accreditation Program (CHAP).  An accrediting organization's survey includes an evaluation of the provider's clinical services, as well as other aspects of the provider's operations such as administration, personnel management and information management.

WHO SHOULD BECOME ACCREDITED?
Any DME supplier that provides equipment and services to Medicare beneficiaries will have to become accredited to continue receiving payment from Medicare.  Pharmacies that dispense any medical equipment, parenteral nutrition and/or transfusion medications must also become accredited.

WHY SHOULD A DME SUPPLIER BECOME ACCREDITED?
Voluntary accreditation has been available to durable medical equipment suppliers for some time, but relatively few suppliers-probably less than 25%-have become accredited.  However, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) makes accreditation mandatory for DME suppliers that serve Medicare beneficiaries.  The MMA requires the Centers for Medicare and Medicaid Services to establish and implement quality standards for DME suppliers, and to designate independent accreditation organizations to apply those standards.  Suppliers will be required to comply with the quality standards in order to retain their supplier numbers and receive Medicare payment for DME.

WHEN MUST A DME SUPPLIER BE ACCREDITED?
Mandatory accreditation will be introduced in stages along with the Medicare competitive bidding program for DME.  CMS has set a Spring 2007 deadline for accreditation of suppliers in the ten metropolitan areas chosen for the first phase of competitive bidding.  Suppliers that are not in the initial competitive bidding areas will have later deadlines, but all suppliers will need to be accredited by 2009.  It is critical that those suppliers begin preparation now.  The accreditation process is likely to take an average of 9 to 12 months, and longer in some cases.  The increased need for accreditation will place a heavy demand on the accrediting organizations.  In anticipation of the increased demand, the accrediting bodies have added additional surveyors and are working at maximum capacity.  However, the need for these services is likely to exceed the capabilities of the organizations.  Suppliers that do not act now risk missing the MMA deadlines and being unable to serve Medicare beneficiaries. 

HOW DOES THE ACCREDITATION PROCESS WORK?
A supplier that wishes to become accredited should contact the organizations that accredit DME suppliers and obtain information about each organization's accreditation process.  The supplier should review the information and choose the organization to which it will apply.  The company must then review its existing services, practices, and policies and procedures to determine what changes will be required to meet the accreditation standards.  It should then develop a plan, including a detailed time line, for implementing the necessary changes, developing appropriate policies and procedures and training employees.  The supplier may apply for accreditation after the changes are in place or during implementation.  The supplier submits an application to the accrediting organization with supporting documentation.  The accrediting organization reviews the application and documentation and conducts an on-site survey.  Based on the submitted data and the results of the survey, the organization will determine whether to accredit the supplier.

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