No Rest for Sleep Providers

According to the providers responding to HomeCare's 2006 Sleep Survey, this expanding sector is one of the bright spots in an otherwise-uncertain HME marketplace.

In fact, survey participants — 203 HME providers from around the country — said they expect sleep-related revenues to increase at an average of 19 percent for 2007. And 36 percent said sleep business now represents more than a quarter of their revenue. That's up more than double from the 17 percent of providers who reported this volume of sleep business from our last survey in 2003.

Almost 90 percent of the respondents now employ respiratory therapists either full- (68 percent) or part-time (21 percent). Another statistic that underscores providers' commitment to this market shows that 10 percent now employ full-time registered polysomnographic techs, up from 5 percent in 2003.

While providers have been growing their sleep business, so have sleep labs. There are now a median six sleep labs in respondents' markets, with a third of providers reporting more than 10. But only 8 percent said their HMEs have their own sleep labs, and most of those who don't said they have no plans to add one (81 percent).

There has, however, been a big increase in the percentage of providers who offer in-home sleep testing, up from 8 percent in 2003 to 20 percent this year. Unattended in-home sleep studies are the most common, and the only, service offered by a majority of the respondents.

As far as sleep therapy equipment, providers overwhelmingly said they think smaller devices are the most exciting development. And although compliance data gathering/monitoring systems have made their jobs easier, they said, keeping patients compliant is still the toughest part of running a successful sleep therapy program.

SURVEY FAST STATS

Providers responding to the survey have a median 300 sleep therapy clients, although 36 percent have 500 or more. Seventeen percent indicated they have fewer than 50 sleep clients, and 14 percent said they have 2,500 or more sleep clients. For these providers:

• Sleep business represents, on average, 28 percent of total revenue.

• The vast majority (88 percent) expect their revenue from sleep business to increase over the next 12 months, with the average increase anticipated at 19 percent.

• Two-thirds (68 percent) employ full-time registered respiratory therapists, while 21 percent employ this position parttime.

• Registered polysomnographic technicians are employed full-time by 10 percent, and part-time by 2 percent.