|National Supplier Clearinghouse (NSC) Updates Supplier Standard #4|
National Supplier Clearinghouse (NSC) Updates Supplier Standard #4
What is considered an acceptable contract in regards to purchasing inventory?
Supplier Standard #4 states, "A supplier must fill orders from its own inventory, or must contract with other companies for the purchase of items necessary to fill the order. A supplier may not contract with any entity that is currently excluded from the Medicare program, any State health care programs, or from any other Federal procurement or non-procurement programs.”
Currently, there is no regulation establishing a minimum credit limit. CMS and the NSC are looking for a "reasonable” credit limit based on what products and services are being provided. For example, if a supplier provides electric wheelchairs and the supplier only has one wheelchair in stock and submits a contract for $500 in credit, this would not show compliance with this standard. Due to the cost of electric wheelchairs, this supplier does not have sufficient inventory in stock nor does the supplier have a contract to show enough inventory can be purchased to fill beneficiary orders.