Some things are just so predictable. We can be sure summer is coming, that we will get older and that there will be days when our patience will be put to the test. In the home care business, we also have certain predictables — one is that someone is going to toy with our reimbursement rates.
Could HME be the most misunderstood segment of the health care industry? It's possible, and it appears that this misunderstanding will continue. What we do know is that we must prepare for a changing health care landscape.
However, providers should not let the present environment frustrate sales efforts to meet the needs of a tremendously growing market, or efforts to reach potential customers. The revenues are out there, but they will only be available to those who plan and refocus. As you face the coming challenges, consider the following important sales and marketing strategies:
Review your revenue sources by payer — Take time to learn and track where your money comes from. What percentage of your business comes from private insurance, Medicare and Medicaid? Understand the effects any reimbursement changes will have on your business.
Once you have this information, share it with your employees. Remind your sales and marketing staff to refocus efforts in locating new clients and improving service. The competition is growing, and it is coming your way — from the new store down the street to the hundreds of online locations seeking your customers' business.
Determine the retail markets for your products, and look for new accounts that will be interested in what you offer — If you have products for the retail segment of your market, make sure you let all of your customers know. If you sell products that insurance does not cover but that can make life easier for your customers, make sure that you are spreading the word.
Identify referral sources according to the types of patients they serve, and learn more about the work of these important customers — If you understand the types of patients your referral source works with, you will know the kinds of products that will interest them. The more you know about your customer, the more focused your sales presentation can be.
Their customer base may be changing with new services being offered, which means that you may need to change the talking points in your sales call. Keep all of this information in your account assessment form, and keep that form updated.
Develop programs that reach out to the customer as you invite them in — Create new programs that could, for the first time, invite the customer to come to you rather than your going out to him or her. Possibilities include providing educational programs for respiratory patients, classes on nutrition for diabetics or offering a meeting space in your location for local civic groups. You may even have office neighbors with additional space they would be willing to share.
Expand your marketing efforts — Consider creative ways to reach new customers, such as visiting the growing number of assisted living facilities, attending more senior health fairs, adding cable TV advertising to your marketing mix or joining more civic groups.
Advertise your retail location — Advertising works. Make sure all of your patients/customers know about your location, how to find it and about what you sell. Even though you may be providing them with oxygen or a wheelchair, many of the patients you serve may not know about your retail store and the fact that you have additional products and services that can help. Get the word out!
Encourage staff efficiency — Reward your colleagues who suggest cost-saving business activities. The best efficiency consultant may be sitting in an office right next to yours.
Maintain customer contact — Keep in contact with your customers through quality-assurance calls, inviting referral sources into your store and/or forwarding them information about new, state-of-the-art products.
Maintaining such contact will ultimately enhance rapport with your customers. Keep professional referral sources informed about the latest changes in reimbursement and how new policy decisions may affect their patients or their families. Do not emphasize the challenges you are facing in operating your business.
Educate policy decision-makers — Take time to invite your legislators to an open house, or schedule a private meeting to discuss with them the number of clients you serve in the community and the effect that legislative changes and reimbursement decisions have on the services you offer. It takes an effort to do this, but it is imperative that you reach out and educate those who control your business fate.
Join your state and national home care associations, and stay informed on the perspectives from national industry leaders — Much that affects the way you get paid happens through policy decisions at both the state and national levels. Supporting your association is vitally important to reaching, educating and insuring that providers' businesses are understood. Make membership dues an important part of your business plan. Dues should be a line-item in this year's budget.
With the education you receive from your association leadership and members and their outstanding networking opportunities, and keeping informed through the industry press, you will be ready for any changes on the radar screen.
Where do we go now? We move to a more dedicated and strategic marketing plan. We must find ourselves making fewer cold calls, doing more long-term planning and spending more time in the conference room behind closed doors analyzing business and the next steps.
The climate has always brought the HME industry periodic storms, but providers who have prepared have also endured. Can I count on your being among that group?
Louis Feuer is president of Dynamic Seminars & Consulting Inc., Pembroke Pines, Fla., and the founder and director of the DSC Teleconference Series, a teleconference training program. He can be reached at www.DynamicSeminars.com or by phone at 954/435-8182.
