The Future of HME Software and you

Given the complicated nature of running a home medical equipment business, it's hard to imagine a time when we didn't use computers. How did we do it? With a lot of employees to complete all those processes manually.

Now, with more regulations to comply with than at any time in the past, decreased reimbursement rates and an aging population that has most providers busier than ever, it is virtually impossible to manage a growing, profitable HME business without the aid of competent computer software. HME software systems are, in large part, responsible for helping providers keep pace with changes to the industry imposed by insurance payers.

In just 20 short years, we have seen basic billing processes move from typewritten certificates of medical necessity and claim submission forms to basic text-based computer systems and now to software that sports attractive graphic user interfaces.

In the past, HME software was simply seen as a vehicle for submitting a claim to insurance payers. But with mandatory accreditation and competitive bidding on the horizon for thousands of home care companies, this industry's software system vendors will have to step up to the plate once again and develop advanced features to assist providers in meeting all of these new requirements.

Critical Choice

It's not a stretch to say that a provider's choice of HME systems software may be the single most important decision that is made over the life of the business.

Running a home care company involves much more than simply getting an insurance claim out the door. There is inventory to manage, sales and marketing efforts to assess, cash flow to preserve and quality of care issues to monitor. As you evaluate your company's software choices, you should look for systems that can help you and your managers run the entire business and collect and report the data you will need to be successful.

Cash flow is king in the HME business. A competent software system should provide tools to manage a “just-in-time” inventory process that includes a basic purchase order system, allows you to set minimum and maximum levels of stock and generates reports that tell you how much stock should be ordered on a routine basis. Bar-coding systems should be available that reduce the time required to confirm deliveries and move claims through to the documentation, then the billing process.

In addition, you should look for a system that will help to determine gross margins for individual products and product categories. As a result, you will have a good head start when it comes to submitting a winning bid to Medicare.