As many of you know, I have an opinion about everything. Heck,
that's what most consultants are all about. I thought I could stay
quiet about competitive bidding, but that is not the case. Working
with and knowing hundreds of small business owners and managers for
almost 35 years places them in my thoughts every day.
I keep asking myself, how can my friends and colleagues survive
this? Is there some comment I could make that would offer even the
smallest amount of help? If the boss said he was going to cut 32
percent of their salaries, how would those who made this decision
react?
Was this created by a few providers (and I question whether that
is the correct name for them when “thieves” might be
more appropriate) who have possibly caused others to pay this
outrageous penalty? Let's punish the hard-working, dedicated
businessman since we seem to be unable to clamp down on those
abusing the system. What other business do you know that could
sustain a 32 percent cut? What's in the minds of those who were
thinking this is acceptable?
Can you tell I am getting angrier and angrier just writing this?
I think it is anger management time, so I'm going to try to use my
energy more effectively.
How does any company with a significant amount of Medicare
business survive? While I hear comments in the marketplace noting
that it would be easier for the larger companies to take these
cuts, I am not so sure. There are many fixed expenses in our
business, and no one will remain unscathed by the hacksaw approach
to solving escalating costs. Glad we took any patient care concerns
out of the equation, since that would only complicate the decision.
(Oops, cynical again.)
If bidding or any other absurd reimbursement plans go through,
it means every company must re-evaluate business costs and
operations.
Let this devstating program be a warning: If at some point
competitive bidding does go away, you will still need to run your
business in a new way. Everyone will need to do more with less. I
am sure you have heard this many times before, but perhaps you have
failed to act on a new game plan.
OK, now I'm really going to calm down and offer some advice, or
at least try to. As I said, I am not exactly sure what one does
when asked to take 32 percent off of revenues. There are ways, but
doing so will require you to give every aspect of your operations
the once-over.
It's time to realize that your staff must become your best
consultants for new ideas, strategies and plans for being more
cost-effective and efficient without sacrificing quality.
Monitoring for staff efficiency and productivity will be far more
advantageous than reducing staff, cutting services or doing
anything else that would impact the customer's positive reaction to
your business.
Ask yourself these 10 questions:
Can a more careful delivery mapping system save us time and,
ultimately, money?
Have we developed a more sophisticated retail component to
compensate for potential revenue losses in other areas of our
business?
Have we considered developing different product lines?
Are there new product lines that have been added to our business
that few people know about and require a marketing plan?
If we have aligned ourselves with other home care providers to
offer services in areas we did not formerly reach, have we
developed a working relationship with our new partners that ensures
efficiency and adherence to accreditation guidelines, etc.?
Have we scheduled a staff meeting, department meeting and/or
manager's meeting to discuss what part each person, department and
leader can play to help reduce costs without negatively impacting
customer service?
Have we met with our vendors/manufacturers to discuss what could
be mutually arranged to assist us in these difficult times? Can the
ordering process be altered? New payment plans created? This is a
good opportunity for some creative brainstorming.
Have we reviewed all of our marketing plans to make sure we are
doing everything we can to enhance our impact and branding as we
seek new referral sources and increase product sales?
Are we focused on auditing, billing and timely reimbursement? No
one can afford denials, audits and delays in payments. We need to
receive what we were told we would be reimbursed — and sooner
rather than later. Excessive time spent on working a denial or
appealing a decision not to pay a claim is a costly experience and
a sad use of employee time. This is time that could be better used
in more productive ways. What are we doing to ensure a clean claim
is being submitted every time?
Have we reviewed all the technology that is available so that we
are as efficient as we can be? The list of options is endless, and
more choices are becoming available. (You might assign one person
in the organization to be your technology advisor to keep you aware
of the software, systems and services that are out there.)
If absolutely none of this advice is of value, do what I am
about to do: Take an aspirin. If that fails, take a drink. If
you've never had a drink, maybe you want to consider one. And if
neither is an option, take the day off — but don't stay away
too long. We need each other more now than ever. This is all part
of my new anger management plan.
Read more Sales Notebook
columns.
Louis Feuer is president of Dynamic Seminars
& Consulting Inc. and the founder and director of the
target="_blank">DSC Teleconference Series, a teleconference
training program. You can reach him through
href="http://www.DynamicSeminars.com">www.DynamicSeminars.com
or at 954/435-8182.
