IT'S TIME TO get out the yardstick. As you work to ensure your home medical equipment business' success, it helps to measure your company's performance against that of your peers and set goals accordingly.

To help you out, we've put together the latest available industry statistics in this, our annual Facts & Figures feature. On the following pages, you can find answers to such questions as: What is the biggest revenue generator for providers? What is the average accounts receivable days sales outstanding? How much revenue do providers generate from managed care?

We encourage you to take a look at the data here and then answer, as only you can, this question: How do you measure up?

Growth Markets

Providers at Medtrade 2000 were asked:

WHICH THREE OF THE FOLLOWING 10 MARKETS WILL BRING YOU THE BIGGEST REVENUE INCREASES IN 2001?

Rank	Product	% of Providers
1	Respiratory	60.2%
2	Power Wheelchairs	42.9%
3	Manual Wheelchairs	40.8%
4	Beds/Mattresses	35.6%
5	Sleep Disorders	27.5%
6	Bath Safety	26.5%
7	Seating/Positioning	21.5%
8	Scooters	20.4%
9	Pediatrics	17.4%
10	Women's Health	7.1%
Source: HomeCare Point of View Survey 2000

Five-Year Revenue Growth Trend By Home Care Business Mix

ANNUAL GROWTH

Size of Firm	1995	1996	1997	1998	1999
Home Infusion	33%	10%	31%	15%	19%
Respiratory	19%	16%	16%	9%	12%
HME	14%	17%	16%	12%	6%
Home Health Agencies	18%	1%	12%	5%	N/A
Mixed Market Firms	N/A	10%	12%	10%	10%
Source: American Association for Homecare

Purchasing Sources

		Percent of 1999 Purchases From:
		Manufacturers	Wholesale/Distributors
Industry Average		71%	29%
By Company Size:
	Under $1 million	60%	40%
	$1 - $3 million	71%	29%
	$3 - $10 million	72%	28%
	Over $10 million	73%	27%
By Primary Business:
	HME	82%	18%
	Respiratory	70%	30%
	Home IV	40%	60%
Source: American Association for Homecare

Top Mobility Products

Providers at Medtrade 2000 were asked:

WHICH OF THE FOLLOWING MOBILITY PRODUCTS WILL BRING YOU THE BIGGEST REVENUE INCREASE IN 2001?

Rank	Product	% of Providers
1	Power Wheelchairs	36.7%
2	Manual Wheelchairs	20.4%
3	Scooters	12.2%
4	Seating Products for Wheelchairs and Scooters	12.2%
5	Sport or Lightweight Wheelchairs	6.1%
*	None of the above	12.2%
Source: HomeCare Point of View Survey 2000

Top Respiratory Products

Providers at Medtrade 2000 were asked:

WHICH OF THE FOLLOWING RESPIRATORY PRODUCTS WILL BRING YOU THE BIGGEST REVENUE INCREASE IN 2001?

Rank	Product	% of Providers
1	CPAP/Bi-Levels	30.6%
2	Oxygen Concentrators	26.5%
3	Sleep Therapy Devices	6.1%
4	Liquid Oxygen Systems	5.1%
5	Portable Oxygen Systems	2.0%
6	Oxygen Conserving Devices	2.0%
7	Sleep Diagnostic Equipment	2.0%
8	In-Home Fill Systems	0.0%
*	None of the above	5.5%
Source: HomeCare Point of View Survey 2000

Billing Productivity Revenue and Number of Patient Accounts Per Billing Employee

	Revenue (in thousands) Per Employee	Patient Accounts Per Employee
Industry Average	$663	624
By Business Segment:
Primarily HME	$691	558
Primarily Respiratory	$624	478
Primarily Home IV	$637	500
By Company Size:
Under $1 million	$450	500
$1 - $3 million	$607	619
$3 - $10 million	$687	553
Over $10 million	$873	790
Source: American Association for Homecare

Dealer Buying Group Participation

Type of Equipment	% of Dealers Belonging to a Group	% of 1999 Purchases Made Via Group Programs*	Total Annual Cost of Membership
Industry Average	78%	30%	$1,800
Under $1,000,000	78%	20%	$1,600
$1,000,000 - $2,999,999	79%	35%	$1,650
$3,000,000 - $10,000,000	78%	20%	$2,400
Over $10,000,000	75%	25%	$3,000
*Among firms that belong to dealer buying groups
Source: American Association for Homecare

Accounts Receivable Profile
Strategic and Size Differences

Company Characteristic	Accounts Days Outstanding	Relation to the Industry Average
Industry Average	81	N/A
By Size of Firm:
Under $1,000,000	75	-6
$1,000,000 - $2,999,999	73	-8
$3,000,000 - $10,000,000	85	+4
Over $10,000,000	101	+20
By Type of Firm:
Respiratory	77	-4
Home IV	72	-9
HME	75	-6
Mixed	89	+8
Source: American Association for Homecare

Top 15 HME Medicare Codes Ranked
by Expenditure — 2000

Code	Description	Allowed Charges
E1403	Oxygen concentrator; 4-5 liters	$533,621,062
A4253	Blood glucose/reagent strips	$408,865,286
E1400	Oxygen concentrator; less than 2 liters	$296,934,546
E1401	Oxygen concentrator; 2-3 liters	$285,066,392
E0260	Hospital bed; semi-electric w/ mattress	$275,740,653
K0011	Std. wt. power wheelchair w/control	$259,287,715
K0518	Ipratropium brom inh sol u d	$253,400,558
K0505	Albuterol inh sol u d	$248,844,463
B4035	Enteral feed supp pump per d	$215,064,358
B4150	Enteral formulae category I	$205,876,080
E0431	Portable gaseous 02	$159,276,131
E1402	Oxygen concentrator; 3-4 liters	$135,996,984
E0439	Stationary liquid 02	$124,061,387
E0453	Ventilator 12 hours/less per dose	$109,545,656
E0277	Powered pressure-reducing mattress	$100,067,188
Source: Health Care Financing Administration

Medicare Claims Processing Information
(1998 and 1999)

1999	Approved Services	Denied Services	Total Services Paid
Region A	220,985,373	38,697,743	$775,912,492
Region B	305,736,798	51,776,176	$1,055,088,734
Region C	714,418,907	92,215,470	$2,291,075,961
Region D	276,622,049	40,904,301	$907,273,856
TOTAL	1,517,763,127	223,593,690	$5,029,351,043
1998	Approved Services	Denied Services	Total Services Paid
Region A	214,244,863	44,426,333	$738,600,106
Region B	284,964,394	41,061,450	$990,798,528
Region C	644,537,459	86,889,292	$2,047,102,131
Region D	245,138,119	31,730,722	$847,696,789
TOTAL	1,388,884,835	204,107,797	$4,624,197,554
Source: Health Care Financing Administration

2000 Expenditures by Region for
Top 10 HME Medicare Codes

Region A
Code	Description	Allowed Charges
E1403	Oxygen concentrator; 4-5 liters	$82,710,938
A4253	Blood glucose/reagent strips	$57,205,018
B4035	Enteral feed supp pump per d	$46,113,669
E0260	Hospital bed; semi-electric w/mattress	$43,766,885
E1400	Oxygen concentrator; less than 2 liters	$43,068,565
B4150	Enteral formulae category I	$40,664,098
E1401	Oxygen concentrator; 2-3 liters	$30,070,131
E0439	Stationary liquid 02	$29,116,709
K0518	Ipratropium brom inh sol u d	$25,690,687
K0011	Std. wt. power wheelchair w/control	$24,838,899
Region B
Code	Description	Allowed Charges
E1403	Oxygen concentrator; 4-5 liters	$132,891,280
A4253	Blood glucose/reagent strips	$110,502,694
E1400	Oxygen concentrator; less than 2 liters	$75,840,284
E1401	Oxygen concentrator; 2-3 liters	$50,315,882
E0260	Hospital bed; semi-electric w/mattress	$46,961,649
B4150	Enteral formulae category I	$45,403,296
K0518	Ipratropium brom inh sol u d	$44,887,456
B4035	Enteral feed supp pump per d	$44,844,093
K0505	Albuterol inh sol u d	$43,377,306
E0431	Portable gaseous 02	$38,534,977
Region C
Code	Description	Allowed Charges
E1403	Oxygen concentrator; 4-5 liters	$196,422,613
A4253	Blood glucose/reagent strips	$175,700,816
K0011	Std. wt. power wheelchair w/control	$167,535,811
E1401	Oxygen concentrator; 2-3 liters	$159,181,429
K0505	Albuterol inh sol u d	$141,200,720
E0260	Hospital bed; semi-electric w/mattress	$140,747,917
K0518	Ipratropium brom inh sol u d	$135,187,810
E1400	Oxygen concentrator; less than 2 liters	$114,670,511
B4035	Enteral feed supp pump per d	$91,927,315
B4150	Enteral formulae category I	$77,295,128
Region D
Code	Description	Allowed Charges
E1403	Oxygen concentrator; 4-5 liters	$121,596,018
A4253	Blood glucose/reagent strips	$65,456,698
E1400	Oxygen concentrator; less than 2 liters	$63,355,186
K0011	Std. wt. power wheelchair w/control	$51,788,644
K0518	Ipratropium brom inh sol u d	$47,634,605
E1401	Oxygen concentrator; 2-3 liters	$45,498,950
E0260	Hospital bed; semi-electric w/mattress	$44,264,202
B4150	Enteral formulae category I	$42,513,558
K0505	Albuterol inh sol u d	$41,147,543
E1402	Oxygen concentrator; 3-4 liters	$39,099,261
Source: Health Care Financing Administration

1999 Medicare Part B
Fee-for-Service Enrollment
Per State

Alabama	594,028
Alaska	37,159
Arizona	363,475
Arkansas	399,331
California	2,097,748
Colorado	271,735
Connecticut	379,241
Delaware	100,419
District of Columbia	59,353
Florida	1,903,569
Georgia	808,102
Guam	5,109
Hawaii	96,580
Idaho	139,644
Illinois	1,362,181
Indiana	775,545
Iowa	442,530
Kansas	347,032
Kentucky	556,958
Louisiana	454,843
Maine	202,234
Maryland	506,185
Massachusetts	648,997
Michigan	1,262,808
Minnesota	530,975
Mississippi	394,186
Missouri	695,078
Montana	127,473
Nebraska	227,890
Nevada	139,249
New Hampshire	140,214
New Jersey	943,646
New Mexico	171,292
New York	2,035,602
North Carolina	1,027,517
North Dakota	98,387
Ohio	1,325,229
Oklahoma	432,730
Oregon	277,684
Pennsylvania	1,426,351
Puerto Rico	378,707
Rhode Island	100,144
South Carolina	533,300
South Dakota	113,849
Tennessee	739,521
Texas	1,742,504
Utah	183,113
Vermont	81,665
Virgin Islands	9,022
Virginia	784,766
Washington	498,262
West Virginia	299,163
Wisconsin	705,604
Wyoming	60,372
Source: Health Care Financing Administration