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Benchmarking HME

Do you know whether your home medical equipment business is being run efficiently and profitably?

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Getting Back To Business

The effects of Medicare's competitive bidding delay are a complicated matter.

Marketplace

Not New, Just Improved

Two years ago, when Mike Kuller opened Allstar Oxygen Services in Concord, Calif., the bubble economy was about to burst. Technology stocks were soaring, and dot-com companies were attracting multimillion-dollar investors.

By comparison, home medical equipment seemed boring, Kuller admits. “There aren't very many new companies starting up in HME, because ours is kind of an old business,” he says. “In HME, business is conducted pretty much the same way it's been conducted since [the industry] started. You take an order, you qualify the patient, and you have a technician in a truck deliver the equipment and set the patient up.”

Knowing this, Kuller decided that if he couldn't offer anything new, he would instead offer something better: a commitment to customer service that answers the question, “How would you want your grandmother to be treated?”

So far, Kuller's theory seems to be working. During Allstar's first year, the company generated approximately $280,000 in sales. Twelve months later, Allstar's revenue had more than tripled to $1 million, and this year Kuller predicts sales will jump to $2 million.

In a two-county region where giants like Apria and Lincare have dominated the home oxygen market for more than a decade, these numbers are significant, Kuller says. They prove that good service still means something to oxygen patients.

Every Interaction Matters

“Two of the most important people in your operation are the person who answers the telephone and the patient-care technician,” Kuller insists.

These staff members provide the first line of communication between the patient and the company, he says, and their responses can make or break a patient's trust.

“Your reputation is determined by your least- trained employee,” he explains.

To ensure there is no weak link among Allstar's staff, Kuller focuses on hiring setup technicians who are “a cut above.” He conducts thorough background checks, provides exhaustive training and offers company stock incentives after one year of employment. And, the officer manager who answers the telephone “knows more about Medicare, [HME] and respiratory than just about anyone I know,” Kuller says.

Feeling at Home

The first day home from the hospital can be hectic and confusing for many oxygen patients, Kuller says. Consequently, new patients often forget the initial equipment-operating instructions they receive during setup.

To reinforce these instructions — and to attach a face to the services that Allstar provides — the company arranges a second visit, from a respiratory therapist, which takes place two or three days later. During that visit, the therapist not only reiterates the operating instructions but also gives the patients her personal cellular phone number, in case the patients have further questions.

“The respiratory therapist really makes the patients feel more comfortable and [the visit] lets us see how they're doing,” Kuller says.

Ultimately, the patient — more than the referral source — is Allstar's customer, he adds. “All we have is our reputation. If people are happier, they'll tell their doctors. It's worked for us.”

Has good thinking in employee training paid off for your business? HomeCare magazine would like to hear about it. Contact Susanne Hopkins at 800/543-4116, ext. 463; fax: 310/317-0264; or e-mail: shopkins@intertec.com

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