If you are not currently participating in the sleep market, you are most likely considering the prospect. There is good reason: The market is growing
by Denise H. McClinton

If you are not currently participating in the sleep market, you
are most likely considering the prospect. There is good reason: The
market is growing at approximately 20 percent annually, and
opportunities abound for respiratory providers who offer clinically
sound and efficiently run programs.

“The sleep market is one of the areas that is growing
faster than any other area,” says Bob Messenger, RRT,
Invacare's clinical manager of respiratory products. “From
the perspective of evaluating a business going forward, you really
need to look at the fact that Medicare is cutting the legs out from
under providers in other areas. The one bastion of safety that is
left is sleep.”

With the growing need, manufacturers have responded with a new
generation of sleep-disordered breathing products designed not only
to improve patient compliance but also to enhance providers'
profits.

According to Gretchen Jezerc, respironics' director of U.S.
marketing, sleep-disordered breathing, the company's new technology
is “a way to help people be compliant and successful in their
therapy from the beginning, because that's what really drives
everything in terms of the success of a home care provider's
business and the success of the physicians and clinicians in
treating the patient.”

Manufacturers note that product enhancements are driven by
several factors, competition among them — and that's good for
patients, says Kristin Mastin, director of respiratory marketing
for the DeVilbiss Respiratory Products Division of Sunrise
Medical.

“The sleep market is a young market, so … each
manufacturer is continually trying to offer the latest and greatest
solution,” she says.

“Additionally, the industry as a whole is learning more
about sleep and sleep disorders, which encourages manufacturers to
push the envelope to develop more effective means of providing
sleep therapy. These advancements are furthered by continual
innovations in the components used in the manufacture of sleep
therapy equipment.”

Mastin and others say patient need has a huge impact on sleep
product design changes and improvements.

“What drives our newly designed masks and other
respiratory products is patient feedback with specific requirements
they have for the perfect mask to wear when sleeping,” says
Kelly Rudolph, marketing manager for Hans Rudolph.

“The sleep apnea market is a huge market that is growing
each day, so, therefore, there are various mask requirements. There
isn't one mask for everyone, so we continually strive to meet all
the requirements for a mask that seals better, is more comfortable,
more durable and more affordable.”

Messenger adds that consumers want portable systems that fit
their lifestyles. “Clearly, what we're seeing is a movement
toward a smaller, lighter, quieter and definitely more
aesthetically pleasing product that will fit into people's home
environment,” he says.

To meet patients' needs today, adds Jezerc, products must focus
on comfort, adjustability and “getting it right” the
first time.

Respironics' new My Life series, launched in January with its
OptiLife mask, was developed in part to help patients overcome the
initial difficulties of therapy. The series offers modular
components, simple designs and a wide range of fittings that make
it easy for patients — and therapists — to contend
with.

The OptiLife, for example, allows side-sleeping without
disrupting the seal, based on the premise that patients who are
more comfortable with their equipment will be more compliant with
their therapy. The mask features headgear with no buckles, and
instead of using the nose to support the seal, it uses a chin
support band to provide a foundation for the seal, eliminating
nasal irritation and pressure.

The flexible headgear and chin band allow the mask to be put on
and adjusted with little effort. The mask also comes with pillow
cushions in four sizes (petite, small, medium and large) to
accommodate a range of patients.

For home care providers, the company says the mask should
minimize patient call-backs and “can't-fit” scenarios,
which, in turn, should reduce costs and increase long-term
revenue.

Invacare's Messenger says a good design will allow the use of
fewer materials yet still maintain a good feel. “If it's
designed properly, a mask should almost be able to float on a
patient's face with minimum pressure,” he explains.

The company's Twilight II nasal mask “equally distributes
pressure completely around the head,” he says. “By
virtue of the way the cushion itself is designed, it does not
require the patient to utilize a lot of pressure. They get a
comfortable fit, and there are no telltale signs in the
morning.”

ResMed's Mirage Swift II nasal pillows mask, introduced last
year, is a lightweight mask that sits at the entrance of the
nostrils without covering the nose. The mask has few parts and is
designed for easy handling and cleaning.

Fisher & Paykel launched its new Opus nasal pillows mask in
February. According to Christian Kiely, the company's home care
product manager, the mask is small, quiet and comfortable, and
allows side-sleeping without mask displacement.

Kiely says the mask is designed with anatomical silicone pillows
and facially contoured, reinforced headgear. A
ball-and-socket-styled joint combines with its anchoring system to
give stability and freedom of movement, and the Opus comes fully
assembled with a variety of pillow sizes.

In other product areas, Mastin adds, the market is moving toward
small flow generators that look less like medical equipment and
more like small home electronics. “These units are also
feature-packed, focusing on patient comfort,” she says.

The new DeVilbiss PAP line, which will be launched later this
year, will provide the next generation of remote monitoring, Mastin
adds.

Meanwhile, ResMed has introduced its VPAP Adapt SV, an adaptive
servo-ventilator designed specifically to treat central sleep apnea
(CSA) in all its forms, including complex and mixed sleep
apnea.

Running an Efficient Business

Naturally, an HME market that is growing as rapidly as this one
spawns high-stakes competition among providers as well. As home
care companies increase their presence in the sleep market, experts
say they will have to differentiate themselves through efficiency
and stellar customer service.

There are a number of aspects of efficiency that must be
considered:

  • Clinical efficacy

If patients are not compliant, a sleep therapy program will most
certainly be a disaster. Compliance is directly related to initial
success and immediate gratification. Patients whose therapy is
effective often feel benefits after the first night of use.

Messenger says 80 percent of patients report mask
incompatibility as the No. 1 reason for noncompliance. “It is
very important for providers to ferret out these issues early in
the therapy, because if the patient is non-compliant at the 30-day
mark, the window of opportunity has been closed,” he
says.

  • Diversification
  • Providers will need to diversify their sleep business with both
    payers and referral sources. It may mean stepping outside their
    current comfort zone, but it is necessary.

    “By working with private insurers and expanding their
    coverage area, there are opportunities for HME providers to enter
    into the diagnostic component,” says Tom Pontzius, president
    of VGM Group's Nationwide Respiratory. “There are numerous
    ways to partner with sleep labs to expand coverage areas and
    diversify the existing base of sleep business and expand beyond
    obstructive sleep apnea.”

  • On-site evaluations and set-up
  • As with all areas of HME products and services, delivery costs
    continue to have a negative impact on profitability.

    According to Mastin, providers who have chosen to schedule
    on-site evaluations and product set-ups are discovering that
    patients are accepting this procedure and are realizing
    considerable cost-savings.

    Ron Richard, senior vice president of strategic marketing for
    ResMed, says on-site procedures can benefit patients by providing
    increased scheduling flexibility, and can benefit clinicians since
    they have all of their masks, educational materials and products on
    hand.

    “It enables [providers] to improve overall patient
    satisfaction and engage the patient in selecting the device that
    matches their lifestyle and needs,” Richard explains.
    “The patients we have spoken with about this model expressed
    they felt it was like making an appointment to see their dentist or
    doctor, so it did not seem to be anything out of the norm for
    them.

    “For sleep centers and HME providers,” he continues,
    “this approach is more efficient from a cost standpoint as it
    can decrease expenses related to non-reimbursed activities, driving
    times and appointments that are canceled en route or if the patient
    is not at home.”

  • Patient education
  • When first diagnosed with sleep-disordered breathing, patients
    are naturally confused about their condition and the requisite
    treatments, creating a strong need for education.

    According to Pontzius, patient education is “key in
    maintaining an efficient approach to patient care. By conducting
    thorough patient and referral source education, providers will be
    able to capitalize on their expertise and generate additional
    revenue,” he adds.

    Patients need to know the purpose of the therapy and what to
    expect, notes Jezerc. She encourages providers to make it clear
    that the prescribed treatment is not “just to make them feel
    better — it is actually lifesaving.”

    Since sleep apnea is a chronic condition, disease management
    programs can enhance patient therapy, according to Richard.
    “Disease management programs already include monitoring
    chronic conditions to offset health care costs associated with
    medical protocols that intervene when appropriate to modify the
    patient's behaviors or therapy,” he says.

    “Early detection and intervention can reduce health care
    costs and improve outcomes. Sleep is linked to so many chronic
    conditions. It would seem natural for this disease to become an
    integral part of an overall patient management program.”

  • Inventory management
  • Choosing the right products and the right vendor alliances can
    have a direct correlation with profitability. Patient choice
    certainly is a factor to consider, but providers cannot feasibly
    offer every style of mask.

    Invacare's Messenger points out that it may be difficult to
    streamline inventory — which could mean the patient's first
    choice is not available — but doing so is a financially
    prudent decision.

    “There have to be 50 to 60 masks out there on the market,
    and there is no reason for somebody to have to go with the
    ‘mask of the month,’ so to speak. Providers should try
    to control their inventory so that they are offering two or three
    different types of nasal masks and face masks and nasal
    pillows,” he advises.

    When selecting which products to carry, it is critical to choose
    those that are effective and reliable. Choosing a product based
    only on price can result in long-term loss.

    Jezerc says the best approach is to determine which products
    work best for the company's therapists.

    Providing a clinically efficient, high-quality mask at the
    beginning can improve patient satisfaction and should thus decrease
    costs, adds Rudolph.

  • Ongoing supply initiatives
  • Keeping patients informed about the supplies that need to be
    replaced is not only financially sound, it is essential for
    ensuring positive clinical outcomes. And follow-up programs that
    notify patients they are eligible for a new mask or tubing can
    create a consistent source of revenue.

    “Through the use of follow-up programs and maintaining
    contact with their patients, mask and accessory reorders will help
    in the increase of profits as it relates to revenues,” says
    Nationwide Respiratory's Pontzius.

    ResMed's Richard adds that there are a variety of ways follow-up
    programs can be effective, and points out they can offer additional
    bonuses.

    “Providers are looking at various ways to increase their
    revenue based on follow-up programs utilizing automated call
    systems, postcards and e-mail notices to make sure the patients
    replace their masks and accessories,” Richard says.

    “These programs also can be used to answer questions about
    their therapy, which improves patient satisfaction and documents
    outcomes, so [providers] are in compliance with accreditation
    programs.”

    Such resupply programs offer a significant, yet often
    under-utilized, opportunity for providers.

    Currently this is an untapped market, says Respironics' Jezerc.
    She advises providers to create a comprehensive patient database,
    even if it means starting with new patients. Then, existing
    patients can be added as time allows.

    According to the experts, the market for treating
    sleep-disordered breathing does not appear to be slowing down.
    Providers who create beneficial partnerships with payers, referral
    sources and manufacturers are looking at an incredible
    opportunity.

    Utilize Manufacturer Support Programs To Increase Success

    If you haven't already, take advantage of manufacturer support
    to increase your success in providing products and services that
    treat sleep-disordered breathing. Many offer programs that address
    both patient and referral source education, marketing and
    operations.

    Fisher & Paykel recently launched a new patient education
    program called Vigor8. “This program was designed for those
    who live with obstructive sleep apnea and those that care for
    them,” explains Christian Kiely, home care product manager.
    “We feel this tool is uniquely positioned to drive home care
    provider efficiencies, particularly in the areas of patient set-up,
    follow-up and education.”

    Invacare offers educational programs designed to help clinicians
    become better sleep therapy providers by helping them understand
    the technology that exists today and what is appropriate for their
    patients, notes Bob Messenger, RRT, clinical manager of respiratory
    products.

    “We have also put together some tools to help providers
    who aren't currently in the sleep market to evaluate that market so
    that they have a good understanding of the requirements.”

    According to Messenger, the company also can help providers
    develop relationships and create programs to meet the needs of
    “non-traditional sources” for sleep referrals. He adds
    that Invacare offers team selling opportunities and has clinical
    specialists in the field who are specifically focused on this
    area.

    “Our goal is to help the provider become a more effective
    and efficient provider of sleep therapy,” he says.

    Mick Farrell, vice president of marketing for ResMed, says the
    company provides opportunities for providers to enhance their
    growth, including programs for marketing to cardiovascular
    clinicians, primary care physician practices and diabetes
    educators, as well as those in emerging areas like occupational
    health.

    The company can help improve profitability with “mask
    guarantee programs, follow-up programs that include free mask and
    accessories replacment, email services for patients using
    MyResMed.com and patient awareness through HealthySleep.com to help
    drive undiagnosed patients into the sleep lab and through to the
    HME provider,” he says.

    ResMed also offers clinical services such as continuing
    education programs and clinical protocols for new areas.

    “We promote superb patient care by defending the value and
    essential place of HME sleep therapy services through our Internet
    policies,” says Farrell. “This is important because
    better patient education of the risks of cardiovascular disease in
    untreated OSA and the quality-of-life improvements from effective
    OSA aftercare result in better long-term patient
    outcomes.”

    In January, Respironics launched its Lasting Impressions
    program, which is aimed at boosting providers' success. According
    to Gretchen Jezerc, the company's director of U.S. marketing,
    sleep-disordered breathing, the program offers materials to help
    providers' sales and marketing employees target their referral
    sources effectively, and it provides talking points about the
    benefits they can offer.

    “It includes materials for helping encourage physicians,
    primary care physicians and cardiologists to screen and refer
    patients because of the compelling facts about the prevalence of
    OSA among other comorbidity conditions such as heart disease and
    diabetes,” Jezerc says.

    Respironics also offers educational materials for providers as
    well as additional sales and marketing materials to enhance patient
    success and referrals. The company's “Are You Sleeping”
    screening device is designed to assist providers in the initial
    screening of patients with sleep-disordered breathing.

    Sunrise Medical offers free educational courses for both
    respiratory therapists and sleep technicians. The company also
    offers remote CPAP utilization monitoring as well as parameter
    adjustments.

    “This allows providers to monitor CPAP adherence and
    adjust the prescribed pressure or settings from their
    office,” says Kristin Mastin, director of respiratory
    marketing for the company's DeVilbiss Respiratory Products
    Division.

    Monitoring Home Diagnostics

    Currently, the vast majority of patients at risk for
    sleep-disordered breathing are diagnosed in a sleep lab. But going
    forward, this could change, some manufacturers say.

    “There are already pockets of certain providers and
    certain insurance companies that are using [a home-based] model,
    placing people on an auto CPAP device and having that device do the
    titration from home,” explains Respironics' Gretchen Jezerc,
    director of U.S. marketing, sleep-disordered breathing. She says
    many Veterans Administration programs are already working within
    this model as are some payers. Jezerc advises providers to keep an
    eye out to ensure they are prepared to embrace this model with the
    appropriate products and services that it would require.

    Ron Richard, senior vice president of strategic marketing for
    ResMed, adds that reimbursement is going to play a vital role in
    this area.

    “Payment for diagnostic-attended polysomnograms is
    decreasing across the nation [but] there is a fixed cost for these
    tests associated with overhead and technicians,” he notes.
    “At some point, only the sickest patients will be studied in
    overnight attended sleep centers, thus enabling the physician to
    spend time evaluating and getting the patients on the right
    therapy.”

    Richard adds that if fewer patients are studied in sleep labs,
    then a shift in studies will occur somewhere else.

    “Most likely, these studies will occur in the home,”
    he says. “Perhaps what is more important is the need then to
    provide technology that will also tie the portable study to a means
    of home titration so therapy can be initiated.”

    Types of Sleep-Disordered Breathing Conditions

    There are over 80 known sleep disorders. Common sleep disorders
    include:

    • Circadian Rhythm Disorders
    • Excessive Sleepiness
    • Insomnia
    • Narcolepsy
    • Obstructive Sleep Apnea
    • Parasomnias
    • Periodic Limb Movement Disorder
    • Restless Legs Syndrome

    Source: National Jewish Medical and Research Center

    Effects of OSA

    • Unrefreshing, fragmented sleep
    • Severe daytime sleepiness
    • Morning headaches
    • Fluctuating oxygen levels
    • Increased heart rate
    • Chronic elevation in daytime blood pressure
    • Increased risk of stroke
    • Higher rate of death due to heart disease
    • Impaired glucose tolerance and insulin resistance
    • Impaired concentration
    • Mood changes
    • Increased risk of being involved in a deadly motor vehicle
      accident
    • Disturbed sleep of the bed partner

    Source: American Academy of Sleep Medicine

    Experts Interviewed:

    Mick Farrell, vice president of marketing, and Ron Richard,
    senior vice president of strategic marketing, ResMed Corp., Poway,
    Calif.; Gretchen Jezerc, director of U.S. marketing,
    sleep-disordered breathing, Respironics, Murrysville, Pa.;
    Christian Kiely, home care product manager, Fisher & Paykel
    Healthcare, Irvine, Calif.; Kristin Mastin, director of respiratory
    marketing, DeVilbiss Respiratory Products Division, Sunrise
    Medical, Longmont, Colo.; Bob Messenger, RRT, clinical manager of
    respiratory products, Invacare Corp., Elyria, Ohio; Tom Pontzius,
    president, Nationwide Respiratory, VGM Group, Waterloo, Iowa; and
    Kelly Rudolph, marketing manager, Hans Rudolph, Inc., Kansas City,
    Mo.