The landscape of the HME industry is always changing. Companies are trying many different theories, suggestions and ideas to change the way they do business just to survive. Owners are closing their doors or selling their companies because for some, survival is impossible. A consultant out of Texas shared data that stated there are between 7,000-8,000 HME companies across the country and their research is leading them to believe that nearly half of these companies will no longer be in business—either due to the challenges that were presented or they are just not interested in the fight anymore. Businesses began preparing for the wave of upheaval brought by the competitive bidding three years ago. Several times, providers have renegotiated pricing with its manufacturers; accepted and implemented lean processes; instituted cost saving measures across the board. However, these tactics alone are not enough to survive. A provider has to be creative and look for other means of business. Cash sales are a good boost to the bottom line if done consistently. A provider must closely monitor every month whom among its staff is producing cash sales. Employees should receive a percentage of their sales as a bonus to promote the items. Every product offers something that will enhance the life of the patient. Almost every oxygen patient can or will have to travel while on using oxygen you provide. Inform them at the time of set up what items you can offer if they need to travel. There are a variety of portable oxygen concentrators on the market that allow patients the freedom to travel. Current oxygen users are entitled to one week of portable concentrator usage at no charge. If they need it longer or more often, it is then a cash rental. Frequent travelers often choose to purchase the POC—when possible, try and assist them with obtaining financing if needed. Another successful add-on sale is the pulse oximeter. There are a variety of models on the market and pricing can start at a very affordable rate. One word of caution—when patients start monitoring their saturation levels, phone calls to the clinicians increase. These devices can wreak havoc on a respiratory therapist if the patient is constantly checking their saturation levels. Some home medical equipment providers have implemented a non-invasive ventilator program and hiring a registered respiratory therapist to manage the program. Providers have set strict guidelines in place to obtain all the necessary documentation up front to ensure that if they are audited (and yes, it’s likely you will be), everything is obtained on the front end. Educating the doctors and the discharge planners is a monumental task, but in the future when the proper documentation is needed, it will be readily available. Non-invasive ventilators do not fall under the competitive bidding umbrella, and reimbursement is high. The equipment itself can be purchased or you can find a local company that will rent them out. Caution must be taken, as these items are very expensive and a company can end up financially buried in a hurry. You must ensure that your billing department monitors any new program very closely. It is only a matter of time before Medicare steps in and reduces payment and increases guidelines for this item. The window of opportunity is small for this product line. While it is relatively easy to implement all of this, educating the doctors, referral sources and patients might prove to be difficult. Consider employing a marketing manager who has the job of assisting in getting the word out. Using a variety of options to assist your sales team, a marketing manager can direct the way all information leaves the office. For example, the main source of directing information, for Sleep Solutions Home Medical’s marketing manager Katie Parrott, is email marketing. This Troy, Michigan HME provider sends out a weekly e-newsletter every Friday morning called The Friday Snewzzz. In the newsletter, readers can find the latest news on sleep, health, local news and what’s going on in the local office. They also produce a monthly e-newsletter to all current patients, distributed the first Friday of every month, called Solutions Buzz. This newsletter is a patient resource used to read up on more information about sleep apnea, learn how to cope with sleeping with their machines, upcoming events and new products on the market. This HME provider not only sends out these newsletters, but also sends out e-mails informing referral sources and patients about future events or new products they carry. Patients and referral sources can sign up to receive these e-mails by visiting the website or by calling the office, both of which are ways to gain more readers. This method of e-mail marketing proves to be successful in giving clients new information, and helping them learning more about sleep and how easy it is for them to find the information they are looking for. Another creative marketing opportunity that Sleep Solutions Home Medical developed is Solutions TV, which is a series of video blogs that address topics of interest for patients. Video is an easy way for patients to learn by watching hands-on demonstrations, rather than read a page full of instructions. The topics are chosen from patient questions—or based on information that people need to know about—and the interviews are directed toward answering those questions. The videos are kept short and sweet so viewers do not lose interest. The videos are filmed in the local office and feature various employees and current topics—including how to make sure your humidifier is working properly, or new products being introduced. Additionally, social media is used to further engage customers. Sleep Solutions Home Medical has Facebook, Twitter and LinkedIn accounts that are updated frequently with items like news articles, store coupons, new products and event information, along with a copy of Friday Snewzzz and Solutions Buzzz. The main focus of marketing for an HME provider is patient education. The more opportunities to get the information out there in as many places as possible, the better.
