Report Reveals $4 Billion Loss in Inventory Management

HOUSTON—HME360, a consulting firm that specializes in home medical equipment (HME) and durable medical equipment (DME) inventory management, announced the release of a new industry report which reveals that outdated, manual inventory practices are costing HME|DME providers more than $4 billion annually in wasted labor, lost revenue and trapped cash.

The report is based on a study conducted by in90group Research, an independent research firm specializing in health care industry dynamics. 

Key findings from the report include:

• More than $4 billion annually is lost due to excess inventory, asset shrinkage, wasted labor and missed revenue.
• Nearly 90% of providers still perform regular manual counts, causing staff frustration and wasted labor time.
• 65% of providers say they are missing revenue opportunities because of inventory problems.
• Only about one in 10 leaders believe their current inventory systems are fully optimized.

The report also reveals what HME leaders themselves identify as the keys to inventory optimization—insights that point to a clear path forward for providers who want to move from inventory chaos to control.

“Inventory inefficiency has become a strategic risk for HME providers,” said John Skoro, co-founder and CEO of HME360. “Manual processes and outdated systems are draining the industry. But there is a path forward—automation, integration and visibility are the keys to turning inventory into a strategic advantage.”

“This report validates what we’ve been hearing from providers for years,” added Bryan Hines, co-founder and president of HME360. “They know inventory is out of control, but they’ve lacked the tools and visibility to fix it. With the data in this report, leaders now have a baseline—and a roadmap—for how to finally take control.”

The full report provides an in-depth analysis of where providers are losing money and how true automation can help leaders quiet the chaos, control their inventory and unlock growth.

To download the full report, visit hme360.com.