Out There Waiting

The Medicare Modernization Act is affecting how every DME/HME provider does business. One owner I spoke with recently told me that 75 percent of his volume comes from third-party programs. Needless to say, he is wary about the consequences.

My recommendation was that he should protect that third-party business as best he can but that he should also place as much effort as possible in building OTC (over-the-counter) cash sales. Every provider should do the same. Learn the demographics of your community, and build from them.

The following are more good business-building ideas from HomeCare readers who have shared their thoughts with me.

A dealer in Virginia told me that several years ago he sponsored a Saturday morning blood pressure testing day in his showroom. He worked with a preferred vendor who was introducing a new automatic sphygmomanometer. They invited a nurse, dressed in her white uniform and cap, to do the tests. They only saw about 20 people that morning and sold seven or eight units, but the provider was happy with this first effort.

He scheduled a repeat performance a month later and doubled the results. The company now holds a blood pressure testing day on the first Saturday of each month, and the response has continued growing beautifully. The important thing this provider related is that many of the people who came in just for a free blood pressure test — mostly senior citizens — now come to him for their supplies.

As a pharmacist, I have often spoken about the role of pharmacy in home care. One Missouri entrepreneur did just what I have always preached, and looked at putting together the benefits of both. He sent me the following memo that I would like to share:

“In order to expand and maximize our rural pharmacy's sales, we invested heavily in a DME department. When we had an opportunity to expand 40 minutes north, we invested in a second DME without a pharmacy.

“That worked well, so we opened another stand-alone DME location about one hour east. Our concept is to develop DME stores like spokes in a wheel, with the pharmacy in the center providing Rx and OTC meds to patients in outlying rural areas at a minimum investment.”

I apologize because I left out some of the words, but the message is clear. And, this idea works both ways. Dealers who don't have a pharmacy associated with their operation can certainly enter into a symbiotic relationship with local retail pharmacies.