Look Upon the Doughnut

The last few months have been trying times, filled with much confusion, with information changing daily, with regulations that we all have difficulty understanding. It seems that the bureaucrats in Washington, D.C., are having difficulty in finding a common approach to Medicare, to Medicaid, to Social Security, to a rapidly rising national debt and to resolving our difficulties with terrorists.

While the government’s recent actions have had a detrimental effect on the average DME/HME dealer, HHAs and most other health practitioners, this is not the time for sackcloth and ashes. On the contrary, now is when you have to restructure your plans for the future.

Throughout this issue of HomeCare, you’ll find lots of suggestions from the experts on how to prepare your business for the times ahead. I ask that you read every word. I know you will get some great ideas.

Yes, when I look into my glass ball, I see a bright future for our profession. But, that future will only take place if you roll up your sleeves and make it happen.

During the 1939 World’s Fair in New York, one of my favorite sayings appeared at a coffee and doughnut stand in the amusement center. I no longer remember the name of the company, but I have never forgotten their motto: “As you travel on through life, whatever be your goal, keep your eye upon the doughnut and not upon the hole.”

I have believed that since seeing it. To me, it simply means not being distracted from your goal. Always move forward, and stay on your chosen path. Remember that your company is a community-based provider, and you belong to an honorable profession. Be proud!

Does Your Customer Come First?

I often ask this question of home medical equipment dealers, and invariably I get the same answer: “Of course my customer comes first.”

Yes, your customer comes first, but by the same token, are you driven exclusively by the profit motive? Don’t answer this question, but think about its ramifications. You are in business because the profits your company earns support you, your family and those of the employees under your supervision. This is a huge responsibility.

As I see it, a classic example of the profit motive is the role that AARP has taken on the prescription benefit coverage in Medicare reform legislation. The organization was all for it, because AARP has its own mail order pharmacy. The seniors group also sells insurance and other financial programs that are related.

Perhaps AARP would have been better off had they said and done nothing, and allowed the chips to fall. Then the organization would profit as a consequence and would not be seen as driven by a profit motive.

The thousands of senior citizens who returned, tore up or burned their membership cards made a statement to AARP. Whose needs does this organization represent?

Your task as the principal of a DME/HME company is to show the community your involvement with all of the problems that beset us. You must work with legislators to pass and change laws that will affect your customers — and your business. Your clientele must be organized in some fashion to join you in writing letters, making phone calls and paying visits to educate your elected officials. This is a way of setting your company a notch or two higher than your competition. This also shows your customers that they come first, and then you, too, will continue to profit.

The 800-Pound Gorilla

I have always been an advocate for small business, so it’s frightening when I think about the way that one major retailer is dominating the market in our country. There was an article in my local paper about the “retail giant that changed America.” Of course, it is Wal-Mart.

Wal-Mart is the world’s single largest corporation. How large? The article indicated this retailer’s sales were nearly twice that of General Electric, and nearly eight times that of Microsoft. And apparently, they are intent on eliminating the competition. But once it is gone, what will happen to the “low” prices they offer?

As I read the way Wal-Mart drives costs down, I must show some respect. They have proven that they are hard-nosed businesspeople. From the government’s point of view, Wal-Mart has helped hold down the inflation rate in the country, and while doing that, they have boosted their bottom line.

But small business operations seem to fade away when Wal-Mart enters a market. Here where I live, a local grocery soon closed after Wal-Mart opened a superstore. We no longer see small “mom-and-pop” operations; now we see strip malls and city centers emptying after the 800-pound gorilla moves into the community.

In the United States, free enterprise has always been one of our country’s strengths. Wal-Mart has been eminently successful, and my approval — or disapproval — means nothing. I am a great advocate for small business, always have been and always will be. I have stated this time and again: Small business has always been the largest taxpayer and employer in the United States.

Why am I writing this? To help you remember that you can successfully compete against any competition, including Wal-Mart, by honing up your strengths.

DME/HME is a person-to-person business. It is one where you and your staff interface directly with the end user, the person responsible for the patient and the family caregiver. The help you provide on this one-to-one basis is service above and beyond. Your maintenance of records also makes a difference.

Let your community know what your company does, and say it loud and often. No one can beat you when it comes to providing service. Not even the 800-pound gorilla can do what you can!

A Survival Idea

As a local DME or a branch location, the most valuable tool you have to help your company compete is your staff. Yes, your employees must be enlisted to help in the battle to improve company profits and earn new business.

Hold meetings with employees to talk about the Medicare law and your profits. You will be amazed at the wonderful ideas your staff will recommend. Reward the employees whose ideas you utilize. This will give an impetus to all, and they will participate.

Sheldon “Shelly” Prial is based in Melbourne, Fla., with Prial Consulting and also serves as the director of government relations for Atlanta-based Graham-Field Health Products. In 1987, he founded the Homecare Providers Co-Op, now part of The VGM Group. He can be reached by e-mail at [email protected] or by phone at 321/255 — 3885.