Maximizing Marketing

The changes occurring in the HME industry are affecting all product categories, and the scooter market is no different. Declining reimbursements are now the norm, not to mention impending competitive biddng, but for providers who are willing to think outside of the box and make a push toward retail sales, there is opportunity for increased profits and an expanded customer base.

There is no doubt the reimbursement environment is shaky. “It is still in a state of flux, as it is with all Medicare mobility-related devices,” says Jim Ernst, vice president of product development for Leisure-Lift, Kansas City, Kan.

Michael Bower, president and CEO of custom rehab provider Aplus Mobility in Augusta, Ga., adds that he has seen fewer sales because of the changes in Medicare reimbursement. “As semi-ambulatory, client-friendly mobility devices, scooters have historically strong marketplace validity, but it's too bad they don't get more ‘medical’ respect,” he says. “Down the road, the scooter market will normalize at some level and should then begin to bounce back, but for now, Medicare reimbursement has driven scooter sales down.”

Bower's current outlook is not positive. “The scooter channel has narrowed to a few cash sales. Although they were never a big part of our business, we at least had them as options, whereas now, practically speaking, we don't,” he says.

Because of the changes, a growing number of people who are interested in scooters may have to rely on their own financial resources.

“The way that reimbursement is hitting scooters, you will probably see less people choosing Medicare as a channel and more people going to a retail-type market and cash sales,” says Judson Cummins, associate product manager of scooters for Invacare, Elyria, Ohio.

He adds that from a consumer standpoint, there could not be a better time to buy a scooter. “Today, the consumer can get a better scooter than he or she could five years ago — and it is cheaper. You're seeing prices deflate, but features and benefits of the scooters increase,” he says.

“Manufacturers are trying to one-up each other with features, yet consumers are seeing prices decline. In that regard, I think a provider can look and say there is definitely a need out there for a scooter in the consumer market, and manufacturers can provide scooters to meet that need and can provide them at an attractive retail price.”