100 and Counting

There were some important events in 1909. Commander Robert E. Peary of the U.S. Navy was the first person to reach the North Pole. The NAACP was formed, and both the Kewpie doll and Lipton’s ice tea were introduced. And in downtown Valdosta, Ga., a family business was starting a tradition that has lasted 100 years.

Barnes Healthcare Services is celebrating its 100th anniversary this year. The company, which opened its doors in 1909 as Barnes Drug Store, now has 20 locations serving south Georgia and north Florida with 214 employees. More than 50 staff members work out of Barnes’ headquarters branch, its largest retail location, situated in the heart of Valdosta’s historic district.

To stay in business for 100 years is an enormous feat. It takes tenacity, dedication and an even balance of respecting the past while looking to the future. For Barnes Healthcare Services, it also means keeping focused on what is most important: extraordinary patient care.

“Our success and longevity are based on the fact that we stay focused on our patients, our referral sources and each other,” says Charles W. Barnes III, the company’s CEO and third-generation owner. Barnes adds that he and his staff are continually looking at how to improve their processes for increased efficiency and grow the company effectively.

While many HME providers are frightened about the future and focusing on the bad news that, these days, seems overwhelmingly constant, Barnes has made a decision to be proactive and diligent about preparing for the industry’s challenges. From strategic operational changes to efforts to increase revenue to expansion-focused initiatives, the company has clearly demonstrated a formula for success.

“We have chosen to anticipate where the industry is heading rather than react to things as they occur,” says Robert Steedley, the company’s president.

In one example, the company recently implemented a productivity project to increase revenue per full-time employee rather than reducing its staff.

“Our goal is not to reduce the number of employees but to increase the revenue each employee generates,” says Steedley. “Therefore, we have created an environment that will drive that revenue.”

Additionally, the utilization of a software program for rehab-related work flow has energized that side of the business and has produced favorable results.

“The changes in our rehab department have allowed us to double our monthly capabilities, thus allowing us to add additional staff members to that team,” Steedley explains. “Our work flow is very effective.”

According to Steedley, the venerable company has also placed a focus on new revenue sources, such as negative pressure wound therapy and retail. Barnes also encourages employees to attend conferences and training sessions that keep them updated on the newest products available.

“We are interested in learning about new products that drive revenue,” Steedley says, noting that employee training is “imperative.”

From Good to Great

The company’s leadership team knew changes needed to be made to ensure Barnes would celebrate more anniversaries. They incorporated a strategic plan under which employees receive comprehensive training and work in an encouraging atmosphere. With the resources they need made available to employees, the resulting environment enables each to live up to the expectations placed upon them.

Steedley says the basis for the effort came from the book Good to Great: Why Some Companies Make the Leap … and Others Don’t by Jim Collins (Harper Collins, 2001).

“We adopted the book in real terms,” says Steedley. “We eliminated positions, moved people, put the right people in the right positions and found new talent. It will be the people in this company who will be the ‘pull-through’ for us.”

Steedley believes it is important for the company to invest time and resources in employee development. “We have a strong ability to retain staff members, and we are invested in developing their talents,” he says. “We are an organization that cares about people — both our patients and our employees — and it is a must to be profitable in this environment.”

Following the advice from Collins’ book, the company has a policy of transparency when it comes to employee obligations.

“It is a scary proposition for us not to be honest with our staff in terms of the financial aspect of our business,” Steedley says. “They know that we cannot take on bad business, and they know they cannot avoid the necessity of collecting copayments, for example.”

But evident throughout its business practices, customer care is the core for Barnes Healthcare Services, and it starts at the top. Barnes is a pharmacist; Steedley is a registered nurse; and Jason Jacobs, vice president of operations, is a respiratory therapist. The company employs numerous pharmacists, RTs, dieticians, nurses and assistive technology suppliers.

“We are a clinically based company, and our leadership team is passionate about taking care of people,” states Steedley.

The concept isn’t new for the company; in fact, it is 100 years old. Barnes, who remembers visiting the store as early as age 6 and sitting at the soda fountain, says the Barnes Drug Store name is well known in the area and has been since his grandfather opened the business in 1909. Both his grandfather and father required excellence and always focused on new and better ways to serve their patients and customers, he says.

Although Barnes was used to hanging around the store as a kid — he even rode with drivers on deliveries — he didn’t begin working for the company formally until 1972 after he got out of the Army.

Things have changed in the industry since then. He says one of the best improvements came with the introduction of the oxygen concentrator. He also acknowledges the benefits of stricter laws on referrals, remembering that previously, providers would pay physicians up to $150 for each oxygen patient.

Looking to the Future

Although it is a celebratory year for the company, Barnes never stops thinking about the future. “We are always looking for new ideas, new customers and new revenue streams,” he says.

There is also a fourth-generation Barnes involved in the business. “C4” is Charles Barnes IV, the company’s manager for its Georgia-based locations.

Steedley says the future plan is to continue to grow the business through expansion. “We want to become a regional player and grow in the areas we currently have a presence in as well as those where we see a need,” he says.

Barnes feels it is a good time for his company to expand. He explains that most of the operational processes are centralized, including data management, billing, central intake and phone systems, allowing the company pretty much to “find a location and move in.”

So while there are many opportunities for employees to grow in their positions, there is one thing that is not a possibility: providing poor patient care.

“The quickest way to get on Charlie’s bad side is to not take care of customer,” relates Steedley. “He expects us to provide excellent patient care, make good decisions and lead with our hearts.”

The philosophy obviously works.

“You will not find anyone who is not truly glad to be here. This is an organization that is fair and makes a difference in the lives of our patients,” says Barnes.