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Operations

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

  • It Adds Up

    Have you begun transmitting your 2003 dates of service yet? If so, watch those EOBs [explanations of benefits] fly in — with $100 consistently in the “deduct” column. Private-insurance deductibles can — and will — range from $100 to $500, and more. Let me share with you my experience with reducing the amount of revenue lost to deductibles. About six years ago, I conducted an internal test to see what percentage of deductibles would be reduced if I waited to transmit dates of service at a later date. I set my electronic claims submission date for Feb. 15, instead of my regular Jan. 8 transmission date. As a result, my rate of reducing deductibles was 62 percent across the board. What a difference six weeks…
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  • Selling Support

    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…
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  • Is Retail the Answer?

    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…
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  • Getting the Goods on Retail

    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…
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  • Not Giving Up

    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…
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  • Pick Your Prophet

    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:…
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  • The Road Ahead

    The only thing permanent about life is change. Most would agree that this proverb applies to the home medical equipment industry, too. Granted, the industry has experienced many challenges during the past 10 to 12 years: acquisition mania, “superstore threats,” and concerns revolving around mass retailers, “direct” manufacturers, managed care, accreditation, oxygen reimbursement cuts and more. Nevertheless, one constant remains: the importance of the local, full-service HME provider. Whether the provider operates independently, as part of a buying group, or as a national account location, an autonomous, local, full-service, experienced and caring HME, mobility or rehab provider still is what best serves people in need of our products, and I fully expect this will continue to be true. There is a saying, “All politics is…
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  • No Pain, No Gain

    This year will be a challenging, but opportunity-filled year for the home medical equipment industry — let’s call it a “no-pain, no-gain” environment. The Internet will continue to affect the evolution of HME software into an essential component of the HME business profitability and productivity equation. Speed, security, affordability, redundancy, improved work flow and real-time access to information — all of these are the benefits of Internet-based HME software products and services. The biggest HME software innovations in 2003 will revolve around continued early adoption of Internet-based applications by forward-thinking HME organizations. As more businesses adopt HME software packages, they will become as de rigueur as computers, cell phones and DVD players are to the general population. Of course, there will be challenges to overcome…
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  • Mirror, Mirror

    Happy 2003!
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  • New Year’s Resolutions

    In the spirit of the New Year, it’s time to make some resolutions. Without further ado, let’s resolve to: Lobby Your Congressmen Whether or not lawmakers
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  • The Home Care Evolution

    When one looks over the past 25 years in the home care industry, moderation isn’t exactly a word that springs to mind. Extreme is probably a better word choice, because, excluding our current decade, the home care industry has been all about extremes. Take the extreme autonomy the industry enjoyed during the 1970s, for example. There was little government oversight, and profits, revenues and reimbursements for home care were large. Providers were left alone, for the most part, to run their own businesses the way they wanted. Spilling over into the ’80s, this autonomy began to shift toward another extreme — government oversight — which came to a head in 1997, when Congress passed the Balanced Budget Act of 1997 and cut reimbursements significantly. And…
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