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Benchmarking HME

Do you know whether your home medical equipment business is being run efficiently and profitably?

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The effects of Medicare's competitive bidding delay are a complicated matter.

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Have Van, Will Travel

Picking Up on a Transportation Need

WHEN OPPORTUNITY KNOCKS, Bill Griffin opens the door.

Being open to new business prospects is how the president and chief executive officer of Griffin Home Health Care built his company from a small corner in a Charlotte, N.C., pharmacy to a full-scale home medical equipment business complete with retail showroom. And that's how he intends not only to survive but to flourish.

"We're trying to stay viable. I guess that's the bottom line," says Griffin, who in 1983 founded his company, which now includes a Web site and a hospital-based pharmacy that offers rehab products. "And we're looking at anything that we can do - primarily on a cash basis - to keep from dealing with [certificates of medical necessity] and prescriptions and doctors' referrals and accreditation issues. ...We want to look at things other than Medicare, Medicaid and managed care."

Which explains why, in February, Griffin and his brother Jim, the company's technical service manager, launched Griffin Transportation. It's a cash-only business that caters to Charlotte residents who need nonemergency transportation to medical appointments, the grocery store or elsewhere in Mecklenburg County.

"We are already delivering equipment to many of the same patrons who need assistance with transportation," Griffin says. "The concept of the transportation company fits right into our business plan for serving the seniors of our community."

The company was a year in the planning. Griffin and his brother talked to consultants and potential referral sources before launching the enterprise. Then, convinced it could be a viable business, they bought a minivan to transport clients, increased their liability insurance ("That's the downfall right now - there had to be a big commitment on our part to insure and accept the liability," Griffin says) and got the word out with radio and newspaper advertising.

The company has landed a contract with a local hospice, which it bills for services, but the bulk of the business is from individuals, Griffin says. The van, which is not yet outfitted to carry people in their wheelchairs, runs by appointment only from about 9 a.m. to 5:30 p.m. weekdays.

While it could be considered akin to a taxi, Griffin notes some differences. Instead of a per-mile charge, the fee is a set one-way or round-trip charge. And rather than simply dropping someone off at his or her destination, Griffin drivers stay with the person who needs help or special care. "We charge a little more than a taxicab," Griffin acknowledges, "but you've also got someone who's got a background of working in health care, with a compassionate, sensitive manner."

The service is catching on. "We've had lots and lots of calls," Griffin reports, adding that the company is generating a few surprises, such as requests from people who want someone to drive their cars rather than take the van.

But the transportation service seems to complement the HME company. "It's not a get-rich-quick business," Griffin says, "but I think it's a solid, growing business that ties in with our HME business, and I really believe the potential is wide-open."

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