Getting Lean in 2016

As we begin the new year, it is certainly no secret that changing industry conditions, payment models and regulatory requirements are forcing HME providers to do much more with far less. These industry pressures have required providers to pivot and adapt their businesses at faster-than-normal rates in an effort to counter reduced reimbursements and tougher regulatory requirements. Providers must think differently about how they run their businesses as technological innovations are providing new opportunities to streamline operations to enable providers to not only survive—but thrive—in this constantly changing environment.

In most industries, lean principles are typically thought of as customer-centric methods used to continuously improve any process through the elimination of waste. It is a pathway to better quality and lower costs. For HME providers, getting lean can correlate to automating manual processes, reducing touches and eliminating wasteful activities from order intake through collections. Listed below are three key business strategies that HME providers can implement now to get lean in 2016.

1. Automate to improve the flow.

First, focus on your core strength, and evaluate where help is needed. Take time to identify areas for improvement so you can streamline or eliminate repetitive tasks. The time and labor required to process new orders is high, and collecting the initial documentation for claims is the least automated and highest risk area for most HME businesses because of the exposure to audits. Today, many providers still have rudimentary work processes that involve checklists, spreadsheets and handwritten notes. Every time you, or your staff, manually touch an order or service, it is costing you valuable time and money.

2. Transform high transaction/low revenue activities.

Second, lean business objectives through automation typically focus on cost reduction; however, automation should also enable providers to potentially generate additional revenue. Many providers assume that the Medicare population will not embrace technologies that automate business processes. Patient communication is usually performed via traditional mail, and collections are most likely recovered at the back-end of a long and painful process of trying to collect from the primary payers. Because the invoice amounts are usually smaller and require more follow-up with the patient, many providers do not recover a high percentage of what they are entitled. By automating communication efforts and implementing up-front patient-pay processes, you can enable a highly proficient and professional approach to recover otherwise lost revenue—improving cash flow and patient communication, and allowing billing staff more time to work on higher paying activities.

3. Streamline logistics by eliminating inefficient activities.

Finally, providers can implement a mobile delivery solution to automatically load orders onto drivers’ handheld devices and electronically capture real-time delivery data in the field. You will not only eliminate paper-based tickets (and the risk of lost paperwork causing billing delays), but also maximize driver productivity. A mobile delivery solution will give you better visibility of your fleet. The best mobile solutions will graphically display driver location, including where they currently are in their delivery schedule, allowing you to electronically dispatch the best driver to fulfill a same-day order. This type of visibility will enable you to efficiently facilitate delivery of supplies and reduce overtime costs.

While no one can accurately predict what the health care environment will look like during the next few years, HME providers can proactively engage in new strategies to help optimize operations and differentiate their businesses from their competitors. Technology is now delivering more innovative ways to help your staff work smarter and perform less work to get claims out the door faster and with greater accuracy. Applying lean principles takes time and patience. In order to profitably grow in 2016, providers must embrace change and consider implementing lean principles.