PHOENIX, Ariz. — In the wake of CMS' recently announced
competitive
bidding rates, HME providers are once again seeking to rely
less on Medicare dollars. Converting vans to wheelchair accessible
vehicles is one thriving business that is not entangled within the
federal program, and officials at Vantage Mobility International
(VMI) think it's worth a fresh look.
Consumer demand for such products, in fact, has led VMI to
increase its workforce by 25 percent and hire additional people to
support new projects at its Arizona manufacturing facility. The
company is also capitalizing on the interest by expanding product
selection.
Demand for Honda, Chrysler, GM and Ford-based wheelchair vans
"continues to be strong," said Doug Eaton, VMI president and CEO.
"While it was a tough year for many businesses, we've accelerated
manufacturing to fulfill orders and we're adding specialists to
help develop our next generation of vehicles."
So far this year, VMI has added 32 permanent employees and 18
contract workers in positions from production to skilled labor to
quality inspectors and engineers. The company is also actively
recruiting 40 people for the development of new products.
Known for its van conversions, platform lifts, wheelchair lifts
and transfer seats, VMI produces lifts and conversion equipment
primarily for occupied wheelchairs that carry people who spend
virtually all their time in chairs. While this type of equipment
may be relatively low volume, Eaton said providers who are looking
will find ample opportunity to build cash business.
"Our modifications are not funded by Medicare," Eaton said. "I
have always felt that when Medicare changes came to the DME
business that providers would start looking more seriously at our
model and see the growth that we have experienced, the margins we
are creating and the customer satisfaction. Being super-reliant on
Medicare is putting too many eggs in one basket."
Those who take the plunge and become certified modification
dealers must have the space necessary for welding and fabricating,
plus the personnel to get it done. "You'll need electrical
technicians and mechanical technicians that have specific
automotive skills," said Eaton. "There are also some personal
liability and injury implications, because if you put a
quadriplegic behind a steering wheel, there is a chance that person
could crash. I think some dealers have probably stayed away because
it is somewhat sophisticated, has lower volume, and has some
liability issues. But I think they will be looking at it a lot more
closely as the winds shift and cash becomes a much more prominent
model."
With sales up 30 percent in 2010, VMI is experiencing solid
growth in unit sales and market share. Eaton attributes the numbers
to better efficiency at the factory — a 116,000-sq. ft.
conversion facility in Phoenix — and an exclusive deal with
the Honda car company.
"We've spent the last two years improving our lift manufacturing
processes with our lean quality initiative," Eaton said. "We also
have the only supply agreement with Honda, and the Honda Odyssey is
torrid hot with almost 40 percent of the U.S. market for personal
mini-vans. We are the only one that is authorized to convert and
supply that vehicle, and that has been our bread and butter for the
last couple of years."
The company, which has 700 dealers worldwide, is also
capitalizing on consumer interest by expanding product selection
with items such as its next-generation Ricon Slide-Away platform
lift. The new lift advances the design to allow full functionality
of the front passenger seat and provide greater access for
able-bodied passengers. Enhancements over previous models include a
pressure relief valve in the hydraulic pump to better protect
platform components and an upgrade from steel to extruded aluminum
on the outboard barrier material to reduce overall platform
weight.
