Resupply Meets Reality

By now, CPAP providers are chomping at the bit for a chance to embrace the full potential of the resupply business. Many know there is money to be made, but an equal number soon find out it is not easy money.

Most insurances reimburse two to four masks per year, and copayments are relatively minor — so how tough can it be? Sporadic phone calls, disorganized databases and inefficient shipping are just three elements that can complicate what seems like a straightforward mission to replace aging equipment such as CPAP masks.

Officials from major manufacturers such as San Diego-based ResMed have taken notice of the growing resupply phenomenon, but they, too, recognize the limitations. "Clearly there are some players that see resupply as an opportunity to backfill the loss in revenues they have seen at the DME level," says Donald Darkin, ResMed senior vice president. "It's not that some of them don't want to do it, it's that they are not prepared to do it yet."

At Somerset, Pa.-based DeVilbiss Healthcare, Mike Marcinek, vice president of sales and marketing, sleep solutions, agrees that while many providers understand the importance of resupply, they soon realize it takes considerable resources to provide the desired level of service. "The best advice to our partners is to start exploring the options that are available in the marketplace," Marcinek says, noting DeVilbiss' new keystone services such as Adhere and Replenish protocols. "We were listening to our provider partners and developed these unique services to match the customer's needs," he says.

Almost 90 percent of all CPAP patients at Progressive Medical, a thriving home care business in Carlsbad, Calif., become part of the provider's resupply program. Helen Kent, RRT, CEO of Progressive Medical, uses Brightree software to track when supplies are due. "All we have to do is populate it when the patient is initially set up," says Kent, who has been called the "grandmother" of sleep.

Sounds easy, but Kent's success is hard won through trial and error. Other providers are increasingly relying on outside help, and companies such as Atlanta-based PAP Supply are springing up to fill the need. Started in 2009 by home care provider Andy Simmons Sr., the relatively new venture relies on a database management system to help with follow-up, order processing, shipping and additional compliance calls.