The home healthcare industry, which counts Lake Forest’s Apria Healthcare Group Inc. as one of its leaders, lost a legal fight Monday when a federal court upheld Medicare’s plan to put in a competitive bidding plan for oxygen tanks and other durable medical equipment.
The U.S. District Court for the District of Columbia denied a request for a preliminary injunction sought by the American Association for Homecare, an industry group. The group has been trying to stop the project from its Tuesday launch.
The court said it concluded that the plaintiffs are unable to demonstrate an irreparable injury and that it “would not rely on pure speculation” to grant a stay, mentioning that the home healthcare industry didn’t give figures on its estimated loss.
Earlier this year, Larry Higby, Apria’s chief executive, said the company’s $350 million buy of Denver’s Coram Inc. and diversifying its offerings for managed care would lessen its dependence on breathing treatments and government reimbursements.
Apria is in the process of being taken private in a $1.6 billion buyout by private equity firm Blackstone Group LP.
Makers and providers of oxygen tanks, sleep apnea products and other durable medical equipment are fighting Medicare’s plan, which would cut home healthcare companies reimbursement by some 26% on average.
Medicare says the plan is intended to combat fraud and waste in its program, which serves 44 million older and disabled Americans.
