The Magic Ingredient

What is the magic ingredient that makes some dealers stand head and shoulders above their competition? It is simply called customer service.

Train every employee of yours to give the best customer service possible. Sometimes it might only be a simple, “May I help you, please?” or just a plain, “Thank you,” after a transaction is completed. It is easy to build customer service and that is the job of every durable medical equipment dealer.

HIPAA is Here to Stay

The Health Insurance Portability and Accountability Act is creating a great deal of comment within the industry. My take on HIPAA is that, in reality, it is no different from any other regulation with which providers have to contend. Once you accept that HIPAA is here to stay and you do the work to become HIPAA-compliant, it is smooth sailing — all you are doing is maintaining your business along the path of Good Business Practices.

So, if you have not prepared the paperwork and instructed your staff yet, please do so. As of April 2003, it's the law!

Ambulance Chasers

I read in the local newspaper here in Florida about physicians closing their offices, moving to other states and some even getting out of the practice of medicine. I have to admit this upsets me. When I spoke with our family physician, what he told me made the problem crystal-clear. His malpractice insurance is close to $40,000 annually.

His specialty is family practice. He has never had any litigation against him and operates a freestanding office, no attachments; he is a true independent in this era of managed care.

Forty-thousand dollars is an abhorrent price to pay for malpractice insurance, particularly for a small practice such as his. Why is the cost of malpractice insurance so high for a physician? Well, it could be because of some of these “impeccable” law firms and their advertisements, which claim the firms will get you what is due you. Due you? Did you, the patient, not feel completely cured, or did you experience some suffering or whatever it is the firm believes will obtain a cash settlement? How legitimate are these claims?

Most of these firms also claim in their advertisements that patients won't have to pay any fee unless the firm collects a settlement. Under such terms, everyone wants to make a claim, because the odds are better of collecting on a malpractice claim than winning on a slot machine in Las Vegas. Patients have nothing to risk, and frequently, insurance companies will settle a suit simply to avoid the cost of fighting the claim in court. Yes, the insurance company can, and will, win more often than not, but the cost to them can be excessive.

So the insurance companies pay, and lawyers start more litigation, and many credible physicians are forced out of their independent practices or into a managed care organization. And costs continue to rise across the board: the cost for malpractice insurance, the cost to the patients, the cost to Medicare and Medicaid, and ultimately, the cost to the taxpayer who also, at some point, will be the patient.

Special of the Week

I received a call from a dealer in the Midwest who told me how he hangs a sign in his showroom window offering his Special Of The Week. “It gets a lot of comments,” he said, “and it creates many extra sales.”

Intrigued by his marketing technique, I inquired as to the types of products he has promoted as “specials.” He did one for an all-aluminum adjustable cane, but it was not a cheap one. He worked with one of his prime vendors who helped him create some larger sales. He also ran a special on an automatic sphygmometer costing more than $100.

Every item he offered as a special was displayed with as many add-on items he could locate. He did a promo for a hand-held shower attachment, the sale of which generated sales of grab bars, tub stripping, bath benches and one bathtub lift.

His recommendation was not to offer simply expensive items, but to offer high-quality items. People are always seeking better products, especially family caregivers. He said that his customers recognize the difference between high- and poor-quality items.

The moral of this story? Use your imagination. You know your clientele, so run specials and give people extra incentive to walk through the door and into your showroom. When they're inside, they're more likely to make a purchase.

First Aid Supplies

I want to see DME dealers developing bigger and more-profitable sales. While doing this, I also want DME dealers to be alerting the public to obvious problems that the public might not recognize. As a result of 9/11, are you advising your clientele to obtain emergency medical supplies?

Keep in mind, an emergency is not necessarily some sort of attack from the outside; it can be a common, everyday incident, such as a teenager falling off a bicycle or a toddler toppling from a chair. Many of these “minor” incidents require first aid supplies, which you could — and should — be supplying to your customers.

Set up an area of your showroom and prominently mark it First Aid Supplies. I am sure you can fill this area from existing inventory. Arm your salesperson with an Occupational Health and Safety Administration manual and have him or her visit every business in your area to show them what OSHA law requires. Then, offer to help fill their needs. You can sell a great deal more than just first aid kits, and these are all cash sales.

While doing this, your company will be doing the community a great service by showing them how they can protect themselves and their employees with a minimal investment.

Proud to Be in DME

I have read that one out of every 32 Americans is either in prison, out on bail or otherwise involved with the penal system. I find this to be very frightening. When I hear about the scandals of the mega-companies and the billions of dollars stolen from the system by them, I lose sleep. What is happening to our country?

But then I look at our industry and see the hard-working, dedicated people in DME. What a great sigh of relief when I realize just how professional and honest our dealers are.

Yes, we have a few bad apples, but they make up a minute percentage. We can be proud of the contribution DME/HME makes to the health care system in the United States. We can be proud of the recognition we have earned within our communities.

Please inform your congressmen about what and who we are and how important our services are to their constituents. We vote, and votes are what they need to stay in office.

Return on Investment

ROI, or return on investment, is an important tool to assist dealers in determining how much money is generated by marketing programs and whether more should be spent on the programs.

Every dollar you spend on marketing must generate a sufficient return to be of value. Your accountant can be of help in making a decision for any changes. Also, ROI may prove that some items or programs you enlist should be dropped.

Thanks

I want to say thank you to those readers who have called or sent me e-mails commenting about some of what Shelly Sez. When I hear from you, it is greatly appreciated. Several of the ideas readers have shared with me will appear in some of my comments. I know the source will recognize it when I write about it.

Sheldon “Shelly” Prial is a partner with HPS Healthcare Management. A licensed pharmacist, he has been involved with the health care industry for more than 50 years. In 1987 he founded the Homecare Providers Co-op, now part of the VGM Group, which is nationally recognized for its efforts on behalf of the home care industry and for its educational and marketing programs. He can be reached via email at shelly.prial@worldnet.att.net or by phone at 888/367-7208