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Operations

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

  • Don’t Be a Ken

    You know things are changing when Barbie dumps Ken. After a romance that lasted 43 years, it seems Cali (California) Girl Barbie, hitting stores now with a deep tan and a bikini top, may be spending more time with an Aussie beach boy named Blaine. While my 11-year-old neighbor considers Barbie’s new look pretty awesome, she says thinking about the fashion doll without Ken is “just not normal.” I’m not sure exactly what 11-year-old girls think is normal these days, but after growing up with Toyland’s perfect couple, I must admit the split is a shocker. So was the Medicare Prescription Drug, Improvement, and Modernization Act, or MMA, the government’s acronym for the reform law. Way past shocking, in fact, one home care advocate has…
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  • Meet Your New VP of Productivity

    You work more but have little to show for it. You succeed in adding more patients, but it never seems enough. Do you try new things and most prove ineffective? It’s time to have a face-to-face with your “VP” of Productivity. Don’t have one, you say? My, you have been busy! Meet your office mate, Vilfredo Pareto. He’s been with you from the start. He’s at all your meetings. He’s there at each patient visit. Don’t tell your spouse, but he comes home with you at night. “VP” largely rules your operation, your production and certainly your profitability. Let’s give him a call. Quick, dial Star-8020. Buon giorno. Hello, Vilfredo. It’s Terry and a friend. We’ve got you on speakerphone. My associate here is feeling…
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  • Professionalism Is Part of Solution

    Just as with regulatory compliance, one of the keys to addressing the new Medicare Prescription Drug, Improvement, and Modernization Act (MMA) successfully is to address your own internal management systems. Ironically, this is both a key part of the solution and a key part of why we’re in this mess in the first place. Why? The greatest insight I draw from the Medicare reform law is sobering: Congress does not believe that the HME industry has its act together. We cannot discount the fine lobbying work done by the American Association for Homecare and state associations. But Congress appears convinced that those organizations present the voice of only the very best suppliers. Our lawmakers evidently believe that most HME providers do not have their acts…
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  • A Ton of Prevention

    The Medicare Reform Act, otherwise known as the Medicare Prescription Drug Improvement, and Modernization Act (MMA), became effective Jan. 1, 2004. Although the reimbursement reductions that affect the home medical equipment industry will become more severe over time, you should not sit idly and wait for the larger cuts to become effective. Rather, it is imperative to begin evaluating your company’s practices to prepare for the bigger changes that are forthcoming. Knowing what to expect will help you make an educated decision about your company’s future direction. Refine Operations Know the facts. Before planning for change, explain Medicare reform to your staff. Identify those changes that are effective immediately and those whose implementation is scheduled for later. For example, we know that fees are frozen…
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  • Bring It On

    One of the most famous commentaries on the pursuit of happiness came from a group of shaggy rock stars in 1969: “You can’t always get what you want,” The Rolling Stones told us. But not getting what we want is only part of the problem, according to Daniel Gilbert, a psychology professor at Harvard. When it comes to predicting happiness, Gilbert says, “The problem is you can’t always know what you want.” At the heart of Gilbert’s theory is the idea that humans tend to overestimate the impact of events — both good and bad — on their lives. We predict that winning the lottery will solve all of our problems. We predict we’ll never recover from the loss of a job or the end…
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  • They May Not Need You Yet

    This is no Medtrade. That’s something Reece Franklin hears over and over from the home medical equipment businesses that exhibit at his Southern California Senior Expo. The first clue might be the large dance floor, last year placed in the back corner of the Ontario, Calif., Convention Center. Others might be the cruise ship exhibitors and the Lion’s Club booth. At this show, instead of manufacturers marketing to providers, providers market to consumers. At its inaugural event last October, roughly 6,000 people walked through the turnstiles onto the show floor. The expo sold 249 out of 250 booths and had 187 vendors. Among them, 11 were DME dealers, each marketing directly to potential customers, social workers and other referral sources. “There’s been an explosion of…
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  • A Simple Plan

    Our staff often hears from providers who have discovered ways to improve their operations or increase their profits. We rarely hear from any of you that it’s easy to do those things. Lately, in fact, we hear that the paperwork and rules you deal with on a daily basis are making your jobs increasingly harder, requiring complex processes, checks and cross-checks, more staff, more training — and someone just to keep up with all the changes. That’s why the story of Vern and Ella Shafer caught our attention. Veterans of HME, the couple couldn’t wait to open their own company, where they knew they would have to tackle those daily tasks. Yet the Shafers’ common-sense approach to running their small business, complete with all the…
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  • Georgia Reports Computer Problems With Medicaid Payments

    Atlanta Since April 2003, Georgia providers have been filing electronic Medicaid claims based on ANSI standard HIPAA-compliant software. Unfortunately, receiving payment for such claims has been anything but smooth, according to Mike Hamilton, executive director of the Georgia Association of Medical Equipment Services (GAMES). Last month, Phoenix-based consultants FourThought Group reported to the state’s Department of Community Health, which administers Georgia’s Medicaid program, that not all claims were paid correctly and payments were not sent to the correct providers. The state has a contract with Dallas-based Affiliated Computer Services to process Medicaid claims. If a percentage of unpaid claims on-hand is significantly higher than paid claims for a given week for a particular provider, state claims processors have sent that provider payments equal to those…
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  • Redefining Rehab: Making a Name for Itself

    Over the last few years, the only thing more elusive than adequate funding for rehabilitation products and services has been an objective and comprehensive definition of rehab. Many profess to know what it is — and what it isn’t. One person’s rehab is another’s consumer power. There seems to be a pervasive attitude that “high-end” rehab is intrinsically better than all the rest. Many people dislike the service delivery model used by providers of non-rehab mobility services and mistakenly denigrate the value of these products and services to clients. Given the funding environment on both the federal and state levels, these issues have polarized the industry and profession, and rightly so. To be sure that we are all speaking the same language, here are two…
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  • The Parable of the Mom & Pop

    If ever the home medical equipment industry needed a modern-day fable of how to succeed in the face of competition and corporate takeovers, now is the time, and the story of Rapid City, S.D.’s Breathe EZ Oxygen and Respiratory Supply is that tale. In the 1980s, Ella Mae Bell and Vern Shafer each launched promising careers in HME, Ella as a customer service representative and respiratory therapist at Shell Medical in Rome, Ga., and Vern as an employee of his sister and brother-in-law’s Pulmonary Services Inc. (PSI) in Sioux Falls and Rapid City, S.D. As they worked, both were promoted to location manager. Ella managed a staff of six for eight years, while Vern’s family business grew large enough to warrant a 6,000-square-foot location. “Like…
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  • Focus on the Competition

    They are everywhere. You meet them in hospital halls, at the community health fair, sitting in the doctor’s office and in the rehab center. They make sure you pick up your phone by the third ring, control your pricing and respond to your customers in a timely manner. They are called your competitors. And, despite talk of competitive bidding and changes in reimbursement, competitors just keep coming. What do you need to know about your competition? Begin by developing an assessment form that allows you to review your competitors and become aware of how they affect your accounts and your business. Sizing Up the Opposition Track as much information about your competitors as you can. For each competitor assessment, include the following: Business Etiquette When…
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  • Enough Already!

    For years, many of HomeCare‘s contributors have called for providers to take advantage of the opportunities that exist in retail. Unfortunately, according to sales guru Louis Feuer, “Most HME dealers seem to find cash a foreign substance. They often have no place to put it or store it, and find those CMNs so much easier to deal with.” Because over-the-counter sales are so unknown to some providers, Shelly Prial often quips that “cash” is not a dirty word. “The transaction is completed when money changes hands. No paperwork, no forms to fill out,” Prial says. The jokes are funny, but they reflect reality. According to our recent Retail Survey (page 22 in this issue), revenues generated from retail sales comprise only about 14 percent of…
    Read More →: Enough Already!

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