The Bidding Antidote

I have been searching for an antidote to the upheaval caused by competitive bidding and continuing cuts in reimbursements. Fortunately, like big pharmaceutical companies, I had access to data from human trials—by examining success stories from hundreds of companies—that gave me crucial insights.

The result is ready, and the antidote involves heavy doses of a larger customer base and greater efficiency.  Together, these elements can protect us from many of the underlying threats – negative press, Medicare cuts and the government’s misguided judgment about the value of homecare. But we must do more than just fight these threats. We must give our businesses much more attention. We must afford our offices and operations the same energy we devote to talking about industry changes.

We are blessed with a continually growing customer base.  Every day thousands more people find a new interest in what we offer. With that in mind, we must prepare for competitive bidding and treat it like an approaching disease.

Start by Increasing the Number of Customers You Serve

Finding new customers must come first. More customers mean more revenue and greater public awareness of our companies and programs. Most companies can handle a greater volume of customers without significant increases in expenses or staffing. To find new customers, use these ideas:

1) Think about advertising. Where do you advertise? Have you considered TV but not yet talked to any of the stations? Have you met with newspaper representatives to consider costs for that medium?

2) Are you are calling each week on potential referral sources?  List the new people you met with last week, or those you will be meeting with next week.

3) Have you asked existing referral sources for names and organizations that you can contact to discuss a program or clinical service?

4) Have you reviewed orders and found zip codes areas where you have yet to make a sales call?

5) Are you getting to know retail customers?  Have you asked for their contact information, or perhaps invited them to special programs in your store?

6) Do you continually remind staff that business is often built from the errors of competitors, and warn them not to send angry customers to competitors?

Customers are the fastest revenue generators I know. While they can reduce the pain of constant reimbursement changes, they can also increase the need for greater efficiency. That leads us to the second part of the cure.

Improve Efficiency in Every Segment of Your Business

Efficiency saves you stress, time and effort – and ultimately makes money. Efficiency is a revenue producer, whether it involves delivering a product or gathering documentation. Returning  calls from dissatistifed patients, returning to a patient’s home or having to resubmit bills because of incorrect documentation takes time and money, There is no sense in winning a bid or acquiring more customers if inefficiency destroys your reputation and increases costs. Begin here:

1) Create a flow chart of your business. Note the steps required to get a product delivered to a patient’s home.

2) Note what can go wrong during each step and discuss with staff ways to alleviate obstacles to a smooth delivery process.

3) Focus on the warehouse, inventory and placement of equipment in trucks. Do you need more equipment for additional sales or emergency calls?  Do you need to better understand which products take longer to access, what promises you can or cannot make to patients about a delivery or how to more efficiently schedule deliveries?

4) Review how phone calls are handled to ensure you do not miss one and the revenue it might generate.

Now that I have shared the cure — more customers and greater efficiency — it must be self-administered. It’s not easy since it takes a team, dedication and commitment, but it will protect you from a coming plague.

HomeCare, January 2012