Beefing Up Your Bottom Line

This last year in the HME industry has been anything but business as usual. Rather, it has been a constant roller coaster with Medicare: new CMS contractors (DME MACs), implementation of the Deficit Reduction Act, pending legislation on oxygen and power wheelchairs, the Office of Inspector General's latest demonstration project, a surety bond requirement and the onset of round-one competitive bidding.

Without exception, every HME provider has had to think long and hard about their scope of business, both today and in the future. Although the future may seem uncertain at best, there is no time but the present to focus on what is within your control. For many providers, this means turning to internal operations in an effort to become more profitable.

In looking for ways to streamline processes, many providers have implemented steps — several of them relatively simple adjustments — that have made a dramatic, positive impact on their bottom line. Some of these changes are highlighted here, along with their direct savings to the business.

• Electronic Billing and Eligibility

  Simply checking Medicare and other insurance eligibility online has saved one small HME company a minimum of four hours per day over the last year. This has allowed the company to increase business and reduce front-end errors without adding personnel. In fact, business has increased by 30 percent without adding staff.

• Electronic Billing to All Payers

  The most tangible benefit this year for one medium-sized HME company was fully implementing electronic billing to all payers, including Medicare, Medicaid and private insurance plans. The company noticed a dramatic reduction of paper claims that would otherwise cost thousands to print, sort, copy, mail and file. This one thing alone saved a full-time equivalent employee in addition to copier and printer wear and tear, postage, etc.

  The company also handled an increase in revenue with no noticeable change in process flow.

• Document Imaging

  Many providers have implemented document imaging over the past year or two. The change is less intrusive than you might expect, and the benefits far outweigh the time required to implement.

  Four months after implementing document imaging, one large HME was able to reduce staff by four employees and shave 12 days off their DSO. Another company saved two employees, increased revenue by $100,000 per month and improved efficiencies. A small HME company was able to save one employee after adding document imaging and scanning.