Point Counterpoint

For an HME company that provides products and services to patients covered by Medicare and Medicaid, marketing is guided by federal statutes and regulations that protect and guard the integrity of the programs. This does not mean that you must restrict your creativity in marketing; however, you must abide by the law.

A Note about Colette and Jeff

The story goes like this: An environmentalist and an oil driller are standing on the top of a hill looking over a pristine valley with elk, streams and trees. The environmentalist sighs and says, "What a sight." The oil driller sighs and says, "What a site." In other words, beauty is in the eye of the beholder.

The same is true when it comes to looking at marketing programs.

Colette Weil is an expert in marketing. For years, she has advised HME providers on how to grow their businesses by implementing innovative marketing programs.

According to Colette, marketing is the lifeblood of every business. You might have the best product mix, the best service, the best prices and the greatest website. But if no one knows about you, it doesn't really matter, she says. "Marketing is what keeps pumping new life into the veins of the business. I know of no attorneys who have built HME businesses. Entrepreneurs and creative people build businesses."

As Colette says: "What a sight."

Jeff Baird is a health care attorney. For years, he has advised HME providers on how to implement marketing programs legally and, in doing so, how to avoid legal pitfalls.

According to Jeff, in the real world businesses can do just about anything they want when it comes to marketing. However, he says, "HME suppliers are not in the real world — they are in Alice in Wonderland. HME suppliers have to adhere to rules that do not apply in the real world."

As Jeff says: "What a site."

In this special presentation for HomeCare, Colette the marketing expert poses real-world marketing scenarios, and Jeff the health care attorney responds with his thoughts. As you will see, they're both right on.

Scenario 1: Marketing Direct to Your Own Beneficiaries

Colette: Commonly accepted marketing wisdom is that your current customers are your "best value" customers and offer the fastest way to increase revenue. They are cheapest to market to because they are already using you; you don't have to spend money finding them. They will buy more from you in the average sale or obtain other Medicare items from you if they have the choice. They stay with you longer, have a higher average customer lifetime value, and they will refer others to you.