HME on the Radar

A few shopping trips ago I rounded an aisle at Sam’s Club (don’t you just love those warehouse stores?) and almost ran into a stack of transport chairs. I have to admit I was shocked.

We’ve watched for several years now as Sam’s mother chain Wal-Mart has been testing the HME waters. The giant discounter has leased space to providers throughout the country, all of whom are trying out various product combinations to see whether sales of medical equipment in that vast retail venue will work.

But coming face-to-face with a mountain of transport chairs in Sam’s really brought home how fast the HME retail train is moving.

The chairs were masterfully packaged — in boxes small enough to fit in a shopping cart — with lifestyle images of smiling patients and big, bold type listing features and benefits. And, of course, the pricing was friendly.

I don’t know whether sales of the chairs were successful (they were gone on my next visit to the Club) or whether this was part of a nationwide test effort. I do know that if you have any doubts about the fact that consumers will pay out-of-pocket for medical equipment, banish them now.

Yes, Wal-Mart and Sam’s may just be sticking their toes in the water. But the world’s largest retailer is always on the leading edge of buying trends, and its consumer radar is definitely registering HME.

This doesn’t include only non-reimburseable items — bath safety products and the like, which, by the way, you can now find not only at the corner drugstore but at The Home Depot. As consumers become increasingly knowledgeable about the medical products that are available, as the baby boomers march toward old age and fight to remain active, they also will be looking for mobility products and anything else that can ease their daily lives.

Look around as you walk the aisles at Medtrade this year. You will see that a number of manufacturers are developing products — all types of products — specifically for the retail market.

Some providers are also ahead of the curve. I met Pennsylvania’s Mary Sitcoske several years ago at the show. She told me then she was so fed up with the frustrations of doing Medicare business that she had decided to ditch it and “go retail” because the time was right. I recently got a note from Mary, who tells me she is now into her second full year of HME retail and doing fine with her new business model.

Just last week California provider Dallas Jackson called in looking for HomeCare’s most recent Salary Survey because his company is growing and hiring (in contrast to the calls we’ve been getting from providers who are laying off employees to deal with reimbursement cuts). Before he moved into HME, Dallas said, he had worked for Boeing. “I learned then that if you’re doing business with the government, you can’t put all your eggs in one basket,” he reasoned. So he limited his Medicare business and focused instead on building a strong local retail base. Now the company is planning a fourth branch.

Ladies and gentlemen, HME retail is here, and it’s waiting on you. Big retailers see it. Consumers want it, and many are willing to pay for it. And if you think competitive bidding is going to change this industry, just wait till you see what 78 million baby boomers can do.

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