Know Your HLA

Are you familiar with the acronym HLA? You should be. It stands for health legislative assistant. In every Senator's or Representative's office in Washington there is one individual with that title, and he or she is your conduit to legislators and your voice in Congress.

The HLA brings your message to your legislator. By knowing who the HLA is, you can keep him or her informed about what is happening to constituents in your area and what can be done to improve conditions for them.

Build Team Spirit

Use your employees to help generate new sales and improve efficiency. When you hold your next staff meeting, recognize one member of your staff as the “employee of the month.” HME dealers report that staff meetings and employee recognition build esprit de corps. Employee awards also encourage a little competition among the staff, which ultimately benefits your company.

Read Between the Headlines

It seems every time I pick up a newspaper or a magazine, I read another report indicating that Medicare and Medicaid costs continue to rise. In the last quarter of 2001, the reports stated that Medicare spending has increased almost 8 percent. And, Medicaid expenses doubled at the same time. But I don't think these increased costs can be attributed to HME dealers, because, despite the the government paying more for health care overall, reimbursement to dealers is dwindling.

And, it seems that some large players — hospital groups, medical practices and others — constantly are being caught with their hands in the cookie jar. This only increases the pressure on HME dealers to establish lower prices (and lower prices are further squeezing the dollars out of HME.)

The government's solution to rising health care costs appears to be competitive bidding. President Bush and some state governors have been publicizing competitive bidding to give the impression that they are concerned for beneficiaries. However, competitive bidding will succeed only in cutting all services to the lowest common denominator. Consumers deserve the best product — not the cheapest.

Use the Upgrade Provision

One bright spot for consumers and providers is the Advanced Beneficiary Notice's upgrade provision, which allows your customer to choose the item he or she prefers by paying the difference between Medicare's reimbursement price and the manufacturer's suggested retail price.

Because many seniors have discretionary dollars at their disposal, it is wise to make the ABN available. But never allow yourself or your employees to become pushy. Always wait for the customer to inquire about various products before starting any sales pitch. Display similar items near each other, placing the item you provide for Medicare and the upgraded item side by side. Then, when the beneficiary asks about the upgraded item, make your offer.

More to Come

Staying informed is a key to success, and I hope I will be able to provide you with ideas and thoughts to help you increase your company's size and revenues. Look for my column every other month in HomeCare.

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.