Let's Get Lean and Mean

With the growing concern regarding reimbursement cuts, pharmacy changes, competitive bidding and the other doom-and-gloom news you hear, I say let's get lean and mean and fight for the industry.

Home medical equipment and pharmacy have provided for me and my entire family since I was born. I grew up in an independent pharmacy, counting pills with my daddy at a very young age. My parents told me to select a career that, above everything else, would make me happy. That is what I did, choosing respiratory care in HME. As time progressed, I chose to consult in the entire industry — and I'm still happy with my decision today.

Don't Leave It if You Love It

I walk into clients' offices every week of my life. Too often, providers ask me, “Do you think we should just sell, considering what is happening in this industry?” My answer is always the same: “Do you love what you do?” Most tell me, “Yes, and I know I would miss my patients very much.” They've answered their own question.

But to stay in this business, providers do need to plan. Have you thought about how you are going to replace lost revenues from the reimbursement cuts that will come in the inhalation drug market, or with the competitive bidding process? Do not procrastinate, because, right now, your competitors are streamlining their corporate structures and diversifying.

For example, with reimbursement for inhalation drugs soon to be calculated at average sales price (ASP) plus 6 percent, pharmacies should consider adding new product lines. Although the government says it plans to add a service-cost component to the ASP-plus-6-percent formula, who knows what additional fees will really be added?

Some inhalation drug pharmacies are adding diabetic supplies on their shelves, and many have been successful in doing so. Depending on location, some pharmacies even compound for veteranarians and enjoy the cash benefits.

Whenever you consider your business and how you might expand or diversify, think outside the box. When investigating other product lines, remember that everything you offer in the business does not have to be reimbursed by Medicare or Medicaid.