Ever hear the one about the home medical equipment deliveryman who simply left the oxygen concentrator on the end-user’s front porch and drove off? How about the tale of the temp who picked up the phone but, unable to answer any of the caller’s questions, finally told the customer to call back in three days? Then there was the customer service representative who responded to a caller asking if the manager was in by saying only, “No.” These are just a few of the horror stories of the HME business, tales from the trenches of staffing and training gone wrong. Such incidents, say industry consultants and providers, can slice into profits by undermining your reputation, increasing the number of after-hours and emergency calls and driving…

When it comes to building a home medical equipment business, it pays to have the right tools. No, we’re not talking wheelchairs and oxygen concentrators here — we’re talking about financing and protecting your company as it grows. The choices HME providers make in obtaining loans, leasing equipment and taking out insurance can help construct a firm business foundation — one that experts say can be the difference between success and failure. But understanding your options in these areas can be complicated and confusing. What, for example, is the best way to fund expansion? When should a provider lease equipment? Which insurance coverage is must-have and what is optional? For answers to these and other questions, HomeCare sought advice from industry professionals and successful providers….

It always rewards me to hear from home medical equipment providers — the conversations are great. These entrepreneurs are always filled with unique ideas about ways they plan to improve their businesses and increase their profits. They tell me how they will remodel and change their showrooms. I applaud their efforts and always encourage these providers to follow through on their ideas. But, when I ask the same providers a few weeks later how they are progressing with their plans, too often I hear something like this: “Well, Shelly, you know how busy we are and I just never got around to it.” This does not sit well with me. Why? These providers did not make a commitment to themselves to follow through on good…

For home medical equipment providers interested in starting or expanding a beds and support surfaces business, there’s good news. The market is strong and growing, and well worth the investment, according to industry experts. At the same time, providers should not enter the beds and support surfaces market lightly. Experts caution providers to be prepared to do their homework — on the products, on strategic marketing and on the customers. Fiscal Growth… According to a 2001 report from market research firm Frost & Sullivan, the market for specialty beds and support surfaces for wound care will increase almost threefold by 2008, from $935.5 million in 2001 to $2.09 billion in 2008. Beds and support surfaces manufacturers are well aware of these numbers. Experts point to…

When you are fed up with the burden of working with Medicare, Medicaid and other third party payers, where do you turn? For many home medical equipment companies, retail is the answer. The idea of collecting cash up front is wonderful compared to completing the documentation required for third-party billing. For some, cash collections may mean meeting payroll. Moreover, it is far easier to train a retail clerk than to train a biller and a collector. So, why doesn’t everyone add retail to the business mix? From a practical perspective, many people do not turn to retail because the retail business is more difficult to operate than it appears. Why? Not only must retail salespeople have professional and courteous appearances, they also must be able…

If you want to learn how to do retail, go to Wal-Mart. No, don’t laugh. It’s good advice for home medical equipment providers, industry players say. The giant retailer has perfected the art of displaying, marketing and moving its wares, and a trip down its wide aisles can reveal much about successful retailing. In an environment that hasn’t looked kindly on the HME provider for some years, successful retailing could make the difference in whether your bottom line is black or red. Indeed, a successful retail operation can jump start your cash flow and reduce your dependency on third-party payers, according to industry consultants who, along with HME retailers, shared with HomeCare insights into how to beef up retail sales. “If you want to learn…

In a market driven by price and fierce competition, it seems unlikely that manufacturers of manual wheelchairs would be interested in improving current products and developing new ones. Fortunately for providers and end-users, manufacturers — while cognizant of the restraints placed on them — continue to look forward, envisioning better products that provide greater independence to end-users. Mike Serhan, vice president of Dr. K Healthcare Products, says manufacturers who are in the market for the “long-term” must differentiate themselves from others through innovation, faster response times and a commitment to serving their providers. As Serhan and others know, competition among home medical equipment providers is increasing, and cost is the best bargaining chip for some providers. “Smart providers understand quality, reliability and service, but they…

Ask a question of three home care providers and you will receive three different responses. At a least, that was the case when HomeCare queried Jim Binson, chief executive officer of Binson’s Home Health Care in Center Line Mich.; Todd Christopher, chairman and chief executive officer of Home Care Supply in Beaumont, Texas; and Joel Mills, president of Advanced Home Care in High Point, N.C., about their 2003 forecasts for the industry. HomeCare: How would you characterize the upcoming year for the HME industry? Jim Binson: Challenging and rough. A shaky economy, reduced reimbursement from state and federal programs, HIPAA, compliance [issues], lack of manufacturer support, competitive bidding, specialty providers, Wal-Mart and Walgreens entering our industry — all of these are equally challenging. Todd Christopher:…