Features
2010 Forecast Survey
Along with the plummeting temperatures that ushered in the New Year across much of the nation, home medical equipment providers told HomeCare they're worried about a deep freeze of their own in 2010.
Most taking part in the magazine's annual Forecast Survey said they had jumped through the latest regulatory hoops, with more than 90 percent becoming accredited and obtaining surety bonds. And despite the regulatory headaches, a still-dull economy and HME's toughening market, providers' product intentions remain strong for the year.
But unrelenting reimbursement woes, the forward march of competitive bidding and potential threats under health reform could worsen business conditions dramatically, some said.
The python-like squeeze has already taken a toll on some HME companies. Seventy percent of survey participants said rival businesses in their local markets had closed within the past year. The bright side for those remaining is that they picked up market share. "Our goal is to be among the survivors," one provider said. "As weaker businesses fail, we will do our best to capture their market share."
Seventy-two percent are confident they could handle the influx of patients even if half or more of their competitors go under, as CMS has estimated could happen with competitive bidding.
To keep their companies in the right half of that scenario, the vast majority (84 percent) said they had adopted new technologies and/or business practices: Half said they now use DME-specific software of some kind, 41 percent use document imaging and 30 percent use GPS/routing software. To deal with the 36-month oxygen cap and the 9.5 percent DME cut, providers said they had increased efficiency (57 percent), changed their oxygen delivery model (35 percent) and/or changed their product mix (30 percent).
