Bracing for Increased Sales

At first glance, the orthotics market might seem congested with competitors. Mass merchandisers, drug stores and home medical equipment providers all supply these products. But much like the ankles, wrists and feet they help to strengthen, manufacturers say that orthotics can support — and help to grow — an HME company's revenue stream.

Those working in the market say the aging and active population has created a growing pool of customers seeking such products. And, “orthotics fits well with retail and reimbursements,” says Tom Traver, vice president of sales and marketing for Swede-O.

Cash is King

Orthotics are a way to increase sales revenue, as the product lines — at least currently — do not seem to be affected by competitive bidding, according to Rhonda Newman, vice president of marketing for FLA Orthopedics. (See accompanying sidebar.) At April's Medtrade Spring in Las Vegas, Newman says she saw many HME providers looking to put up retail orthotics and softgoods displays in their stores as an avenue to shore up revenues outside of reimbursements, as about 80 percent of these products are sold as cash items.

“For products under the $100 price point, we see dealers moving away from reimbursements [to more cash sales] where they don't have to mess with the paperwork,” she explains.

And for those getting into retail, it makes sense to increase shelf space for braces, wraps, splints and like products, Swede-O's Traver says. “It's a relatively easy sale for HME dealers as opposed to some of the other products they sell such as beds, oxygen and wheelchairs. It doesn't require an enormous amount of time and effort to fit patients, and there's not a whole lot of follow-up that needs to be done after the fact.”

Additionally, the customer base seeking such products is growing.

Active and Aging

As baby boomers age, the market is becoming even riper for orthotics, manufacturers point out. Seniors seeking to remain active often look for ways to self-medicate their minor aches and pains.

“They're not looking for their doctor to scrip something for support for warmth and relief,” Newman says. “More and more people actually are coming in looking for supports to keep active in exercise programs and to maintain their quality of life.”