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Operations

Operational guidance for HME and home health businesses, from inventory and logistics to workflow and efficiency.

  • If Only Products Could Sell Themselves

    Good salespeople always have a place in the home care industry. If the Lord did not see a role for the well-trained salesperson, he would have made products that sell themselves. Anyway, that apparently has not yet happened. While many products come to us in interesting colors and some have unique customer eye appeal, most need a message from the salesperson if they are ever going to leave the warehouse. The product presentation to an interested customer or referral source can focus on any one product element or several. Which of these elements should you include in your presentation, and which should you talk about first? Product Features — Every product comes with a select list of interesting features. These may include the size of…
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  • Keeping Eyes And Ears Open

    All home medical equipment companies brag and sell themselves on providing “quality services.” But do they really meet their claims? Quality is often the little things HME providers do that seem routine. Routine assessments of both the home environment and the patient’s use of equipment will not only assure quality patient services but may also reduce the company’s liability, should something go wrong. While such assessments can be used for all patients, they can be particularly helpful with patients undergoing various types of respiratory therapy. Each time a representative of your HME organization goes into a patient’s home, he or she should review both the environment and the patient for three important issues: Whether it’s on follow-up service visits or just during delivery of supplies,…
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  • Respiratory Update

    While respiratory manufacturers and providers face many legislative and regulatory issues, none has had as much impact as the changes included in the Medicare Modernization Act (MMA). These include changes in the payment formula for respiratory drugs; special Federal Employees Health Benefits Plan (FEHBP) pricing for certain types of durable medical equipment such as oxygen and oxygen equipment; a transitional freeze on DME rates; and competitive bidding. However, as the government implements these provisions of the law, the respiratory community has banded together to advocate against them to Congress and the Centers for Medicare and Medicaid Services (CMS). CHANGES IN THE PAYMENT FORMULA FOR RESPIRATORY DRUGS Beginning in 2005, the payment formula for respiratory drugs will switch from the current 80 percent of the average…
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  • A Little Bit Country

    There is an old-timey, sure-‘nuf country store just down the road from my house. It’s a real delight, especially because I live in a crowded suburb not far from the heart of downtown Atlanta. Along with fresh summer produce, the tiny enterprise carries those old-fashioned, sugary peppermint sticks, pots of blooming flowers, mile-high cakes made from Grandma’s recipes and even genuine Moon pies. On most days there’s a big iron pot of peanuts (a favorite snack of Southerners) boiling over a fire outside. The store also has a particular specialty that is great fun to peruse — hot sauce. One rustic wall is filled with hundreds of little bottles that have names like Scorned Woman, Meltdown, Liquid Ax — Cuts Even the Toughest Taste Buds,…
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  • Banking on the Status Quo

    The seating and positioning market is … pick one: growing, slowing, both, neither. Perhaps more than any other market in the durable medical equipment industry, the prognosis for the health of the seating and positioning market most closely mirrors that for the entire industry. On one hand, growth factors for DME and seating and positioning are in plain view. The population of potential end users is booming, manufacturers are introducing better and more cost-effective products and the federal government has authorized several long-awaited improvements, including new, more specific HCPCS codes for many seating and positioning products. “The marketplace for all DME products is growing tremendously,” says Steve Schlegel, product manager for seating and positioning for Invacare. “Looking at the exceptionally large population of people getting…
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  • Don’t Lead by Memo

    The smart way to train personnel to behave compliantly is not to focus on teaching the laws, regulations and reimbursement policies — the “Rules.” Rather, the second rung of the ROPE Ladder urges you to teach staff how to comply with your company’s day-to-day operational policies and then to make sure that those procedures already address the Rules. While the government requires that you have compliant policies and procedures, you are not required to teach or learn hundreds of pages of regulatory rules. To engender trust in your system’s ability to operate compliantly, one of the secrets of effective compliance training is to avoid leading by memo. Leadership by memo occurs when management sends out memos crafted as orders or ultimatums that warn of severe…
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  • Building a Business Niche by Niche

    Jack Palance had it right. In the 1991 comedy “City Slickers,” Palance slowly leaned over to Billy Crystal and divulged his secret to life: one thing. That may be the secret to business, too, at least for some providers. In the wake of the Medicare Modernization Act (MMA), HME owners are scrambling to optimize business plans and stay on track for long-term success. According to some industry experts, a good option may well lie in one thing — expanding your business to solve the problems of a specific customer group. In other words, your future could be hiding in one or more of HME’s niche markets. Specialty — or niche — business has a seductive sound, especially as the respiratory and mobility markets, long the…
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  • Taking Your Company’s Viability Temperature

    Given the current and upcoming conditions of our industry, wouldn’t it be nice to take an arbitrary business temperature to see if you’re running a fever or are just fine at 98.6 degrees? Managing a home care operation, whether it is a $1 million mom ‘n’ pop or a multiple-location enterprise, is a little like operating a restaurant. The restaurant and your HME both have good employees and faithful customers who frequently refer others to the business. However, this is where the similarities end. Where the restaurant’s customer is whipping out his cash or credit card to pay his bill while he’s still licking pie crumbs from the plate, you are licking your cash-flow wounds as you stare vacantly at your Medicare ANSI-driven report, asking,…
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  • Releasing Bottlenecks

    Recently while discussing a problem a provider was having with a workload bottleneck, I was reminded of a scene in the movie “Pearl Harbor.” A nurse sits in a yard outside a hospital as it’s being flooded with wounded. She forces herself past the shock of the situation, and, in an environment that was probably like hell, she walks from stretcher to stretcher with a tube of lipstick making marks on the wounded. She was performing triage. From time to time, we all have to deal with a bottleneck that chokes the workflow in one process and can affect others. But just like patients flooding a hospital, workload bottlenecks must be triaged. Triage breaks the workflow into smaller units of prioritized work and sets up…
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  • Groups I and II: What Should You Do?

    The complicated requirements for Group I and II support surfaces claims involve the “KX” modifier, which must be attached to all such claims. When you attach this modifier, you are stating that all the documentation required by Medicare policy is in the patient’s file. All decubitus care items require a Written Order Prior to Delivery (WOPD), a signed and dated order from the physician prior to delivering the item to a patient. If you fail to obtain a WOPD, the claim will be denied. Even if you obtain the WOPD at a later time, your claim will not be reimbursable under Medicare guidelines. As of April 1, 2003, claims for all items requiring a WOPD were deemed “non-appealable claims.” That means if you attach the…
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  • Belt-Tightening Times

    “Diet.” “Reimbursement.” The mere mention of either word brings up feelings of dread and frustration, mixed with the promise of great rewards. Don’t ask what made me think about dieting as our staff was putting together the magazine’s annual Reimbursement Survey. I’m on a diet at the moment (I’ve tried them all, from grapefruit to South Beach), and who knows what crazy connections go on in a French fry-deprived head? Maybe the belt-tightening most providers are considering these days made me remember that notching in my own belt is a great incentive for sticking to my current calorie-counting regime. (Well, that and the fact that bathing suit season is fast approaching.) Idle musings aside, I can attest that dieting is no fun. Neither is dealing…
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  • Power Play

    You can’t keep a good market down. Take the power wheelchair market, for example. It has endured a DMERC policy clarification that stalled thousands of payments for power wheelchairs to home medical equipment providers; it has long grappled with an inadequate Medicare coding system; and it has had to compete with an influx of offshore manufacturers, many of whom undercut both prices and quality. But it’s still one of the best HME markets out there, manufacturers say, and there is nowhere to go but up. “The market has steadily grown because the population continues to [get] older,” says Cy Corrigan, national sales manager for Pride Mobility Products, Exeter, Pa. “Individuals have had their freedom, they’ve seen a lot more than our fathers’ fathers saw in…
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