March 2003


The Inside Track


Mark Gowen, CFO

Mark Gowen is co-owner and CFO of Advanced Medical Services (AMS), Katy, Tex, a company that has been providing orthotics since 1995. Gowen, who is an active Medicare lobbyist, recently spoke with Rehab Management about this and other industry topics.

Q: What exactly is Advanced Medical Services involved in?

A: We started out in Houston in 1995 as GT Medical Inc, providing orthotics and durable medical equipment (DME) for nursing homes. As AMS, we’re a marketing and distribution division. Essentially, we are a medical supply and equipment distributor specializing in orthotics, splints, and braces. Most of the products we deal with were designed for people with immobility and trauma-related injuries, like pressure sores and contractures. Overall, we provide everything from cotton balls to power wheelchairs.

Q: Could you tell us about your involvement with Medicare?

A: I am very involved. Currently, I’m on a coding committee, and have been involved with several lobbying efforts in Washington, trying to assist in the development of legislation that will help reform the Medical industry, especially as it relates to Medicare. trying to help get more common sense into Medicare.

Q: What are your thoughts on the current state of Medicare?

A: It definitely costs more to bill Medicare than any other insurance carrier. Hiring billers and a staff to handle denials and appeals costs a considerable amount, and has a negative impact on our cash flow. Medicare is fundamental to the function of this society, but the bureaucracy associated with billing to it has gotten more expensive and hard for some people to keep up with.

Q: What current industry trends are you aware of?

A: Basically, we are seeing a lot of small providers, the mom-and-pop places, shutting down. Much of that has to do with the fear of competitive bidding, even though it still hasn’t passed. But if it does pass, these small places that deal with a very small business radius are going to be outbid by the bigger companies with a national presence. Also, an unfortunate trend is that profits are not what they used to be. We certainly cannot giving away products for free. It is hitting everyone in our industry. Nursing homes, for example, cannot afford to pay for products such as wheelchairs and walkers, and their per diem doesn’t cover the cost for equipment necessary for the comfort or well-being of their patients. And although there is always hope for the future, I’m afraid to say that the trend of smaller companies shutting down, as well as privately-owned long-term facilities, will likely continue.

Q: What do you see happening in the near future in the industry?

A: It does look like small companies will continue to struggle, and close down. Also, I am aware of Medicare becoming more involved with the needs of Medicare beneficiaries as well as suppliers.

—Ben Van Houten

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