The Spirit of Medtrade Spring

Entering the exhibition hall to Medtrade Spring at the Mandalay Bay Convention Center in Las Vegas, I immediately felt the excitement. The showroom floor was brightly lit and the vendors were eager to share their products and services. And well they should be—this was probably the most important Medtrade ever in terms of preparing for the future.

The prevailing attitude of the HME providers and vendors I spoke with is that they can be more successful than ever despite any actions by CMS or Congress.

A Bright Future

My main goal at Medtrade was to remind all attendees of the importance of belonging to their state and national industry associations. Among the association representatives I spoke with, Rose Schafhauser, director of the Midwest Association for Medical Equipment Services (MAMES), has always been one of the strongest cheerleaders for the industry, and her comments from the show floor displayed her usual enthusiasm. “I believe that, for the suppliers who have remodeled their businesses by diversifying out of traditional Medicare and Medicaid and are marketing themselves creatively, the future is extremely bright. With 10,000 Baby Boomers turning 65 every day, business will be booming for those providers who survive. The future is bright in DME—will you be shining?”

Diana Guth of Home Respiratory Care Sleep Solutions commented on why she attended the event. “I usually attend Medtrade Spring, but my motivation this year went far beyond the usual. The times are drastically changing for the DME industry. The looming ‘Humpty Dumpty scenario’ of competitive bidding drew me to be with my peers, learn how to best navigate it, find guidance as to how to politically fight it both as an individual and as part of a group, monitor the pulse of its evolution and especially explore new avenues of revenue.

“The DME needs of the public will grow as the Baby Boomers age. This is a group that will never own up to being ‘old,’ but their needs will have to be met,” Guth said. “The public may have to become accustomed to paying out-of-pocket for medical devices and aides that were formerly paid for by insurance. The HME industry will find a way to be there for them.”

Cash Is King

I ran into another friend preaching the benefits of cash business. According to Jeff Swain of Carex Health Brands, “As the ever-changing dynamics of Medicare loom, creating a more uncertain future for medical equipment dealers, a huge opportunity exists for those who are able to successfully reinvent themselves as cash businesses. In many ways cash offers benefits over the current system of Medicare reimbursement. Cash business is just that—it is cash in the retailer’s pocket.

“To realize these benefits requires a change in thinking, however,” Swain said. “Providers are now competing more with national retailers that offer refined planograms, convenient locations and expanded hours. Dealers need to take a close look at the convenience they offer their customers and try to be more retail-friendly.”

At the Essential Medical Supply booth, Mike Hoepner shared his thoughts: “For the past 20 years, the only constant in the home care market has been change. Whether it was OBRA-90, the Six Point Plan or competitive bidding, providers have always found ways to deal with adversity.

“Today’s providers have a unique opportunity to build a market that isn’t constrained by government rules and regulations. There are hundreds of cash items that aging Baby Boomers will need and providers can capture this market if they recognize that Boomers are sophisticated shoppers who demand quality products at a fair price. Baby Boomers are the richest, most sophisticated, largest generation ever. Meet their needs and you’ll have success with cash sales.”

Education Is Essential

As I meandered through the exhibits along with my assistant and photographer for the day—Russ Willcutt, editor of HomeCare magazine—I saw a dear friend, Ron Resnick of Blue Chip Medical. One of the most rewarding reasons to attend Medtrade is seeing the friends with whom you have weathered so many changes in the industry.

“The purpose of the show has not changed,” Resnick said. “It is a venue where people can collaborate, network and discuss issues that have long-term implications. Today more than ever it is essential that dealers come to learn and gain a better understanding of what they might expect in the future.

“Buying groups have provided guidance during the bid process and offer many marketing services to help providers recognize the opportunities that are out there. Education will be the key to success for any dealer. We provide CEU programs to help dealers to enhance their visibility to their referrals. We have all been through good times and bad times. Now we all face changing times.

“The health care market has not changed in terms of demographics and patient needs. What has changed is where you are in the food chain,” Resnick said. “You must educate your referrals as to the documentation that is required and the products that are available under the bid process.

“We must be optimistic as our industry is responsible for providing proper health care and clinical outcomes. We are no longer a ‘cottage industry.’ So with that being said, let’s all work hard to keep our industry honest, service our patients and be proud once again.”

It was rewarding to see DME providers seeking new opportunities, products and vendors, and the exhibit hall was bustling. I stopped to say hello to Paul Brelo of Medcenter Systems, who was displaying his line of products that help patients sort and travel with their medications. According to Brelo, “Four in every 10 admissions to a nursing home is due to poor medication adherence. Hospital readmissions, doctors’ visits and additional sick days all contribute to overall health care costs. All states are facing rapidly growing budget restrictions due to their share of Medicaid costs. End-of-life skilled nursing care is the major cost driver. Keeping people in their homes is the mantra of all state health departments, and DME providers are an important link in helping people maintain independence and remain in their own homes as long as possible.”

Dynamic Solutions

According to Lisa Bernath, marketing head of Burbank, California-based Gotcha Covered, “Opportunity knocks is our theme for this Medtrade.  When the show began, the aisles filled up quickly and we were slammed with providers looking for cash retail products. Fortunately, that’s exactly what Gotcha Covered has to offer: High-quality sheeting and protectors for the home and beyond. We had existing customers come by just to thank us. Now that’s what we like to hear.

“There’s so much money being left on the table at the pharmacies and DMEs. The opportunity to increase sales and gross margin is available and buyers are starting to get it. We have high hopes for Orlando, too.”

Diane Christopher of North Coast Medical in Gilroy, Calif., said, “HME providers and their supply-chain partners will work collaboratively toward creating better retail environments. Whether the build-out is in the virtual space or traditional brick-and-mortar, customer engagement strategies must strive to create meaningful retail experiences. For companies that want to succeed, thinking outside the box and offering real solutions will be the differentiator to win and keep happy customers.”

Orlando Ahead

My appreciation to the many folks I spoke with, and rest assured that I am saving all the quotes I gathered for future articles. Be sure to attend Medtrade 2013 Oct. 8-10 at the Orange County Convention Center in Orlando, Fla. Learn more online at www.medtrade.com.