Making a Commitment to Improving IT

A little over seven years ago, the management at Monroe Wheelchair determined the environment then — and the one they saw coming — for mobility products and services demanded an operational change. The company’s leaders knew it was time to improve productivity through information technology.

“We realized that if we did not formulate a plan to implement IT in our company, we would not survive,” says Doug Westerdahl, president.

Monroe Wheelchair’s primary focus is on complex rehab, which makes up 70 percent of its product offerings, but the company also offers standard DME, lifts and ramps and support surfaces. Over 60 employees provide products and services at three upstate New York branches, including headquarters in Rochester and locations in Syracuse and Latham.

According to Westerdahl, the current HME market poses a number of operational challenges for providers: maintaining or improving gross profit margin while fee schedules are being reduced; streamlining processes to improve productivity; maintaining competitive wages for staff; maintaining a high level of service while revenues decrease and overhead expenses increase; maintaining strong banking relationships; and motivating employees.

“Unfortunately, we must also plan for the effects of competitive bidding, which means accomplishing all of this with an anticipated 15 percent reduction in revenue,” he says.

Knowing that these challenges were on the horizon prompted Westerdahl and his staff to develop goals and a plan to prepare for the industry’s future. The first step included hiring an IT manager and investing in PCs or laptops for 90 percent of the staff, then networking the locations and employees.

“We then hired a programmer and began to develop our own proprietary work flow process software,” says Westerdahl. “This was our single biggest and wisest decision.”

The company also invested in document imaging software and software to schedule and route deliveries. An automated email notification system was developed to let customers and referral sources know of order status changes. The company created a paperless system to email or electronically fax documentation to doctors, clinicians and insurers in addition to developing a paperless system that electronically faxes or emails purchase orders to manufacturers.

“With these IT enhancements, we have seen our revenue per full-time employee go from $113,000 per year in 2001 to $208,000 per year in 2006,” says Westerdahl. “We saw a slight setback to $191,000 per year in 2007. However, considering the 15 to 20 percent reduction in the power mobility device fee schedule in 2007, we recognize revenue per full-time employee could have been much worse.”

The biggest obstacle the company faced when implementing the technology changes is one that is common — and costly — in the HME industry, according to Westerdahl.

“We tried to convince software companies that it is wise and beneficial for our industry to integrate with other software companies,” he says. “The only way to deal with that is to be persistent. We have paid as much as $20,000 for such integration. On the other hand, we have dealt with some software companies that see the benefits of integration and provide the programming at no charge.”

Westerdahl gives credit for the operational improvements to the focus on IT, but he also says it is not the most critical factor.

“I have a personal belief that the key to success for anyone is to surround yourself with good people and never lose a passion for what you are doing,” he explains. “I have an incredible group of managers and support staff that I believe are some of the best in the industry. I consider myself extremely lucky to work with all of them.”

Monroe has achieved success by streamlining operations through technology, but Westerdahl hasn’t stopped looking forward, continually exploring new ways to improve the company’s processes.

“You might think that a company would experience some difficulty implementing as much change as we have over the past several years, but I can proudly say that all of our changes have been met with enthusiasm. Our managers and staff have recognized that change is necessary in order for us to survive,” he says.