Providers must meet needs on both sides of manual wheelchair market.
by Denise H. McClinton

The manual wheelchair market offers many opportunities for HME
providers who want to increase sales and diversify their customer
and payer mix. And whether they are looking to satisfy Medicare
orders or retail sales, features and price both play an equal
part.

"There are two markets. There is the DME market where the
provider is providing wheelchairs to the Medicare market, and in
the reimbursed market, providers want a good quality product at a
good value that is going to last through the cap," says Mike
Serhan, category manager, wheelchairs, Drive
Medical
.

"Then, there is the retail market. In this scenario, it is what
the customer wants, not what the provider wants. They want a
product that is lightweight, stylish and functional."

For Medicare-reimbursed manual wheelchairs, cost is a
considerable factor.

Carolyn Gongwer, Invacare's associate product manager, manual
wheelchairs, says that as reimbursement in the manual wheelchair
market declines, providers are looking for a quality chair at the
most economical price possible.

"Everyone wants more for less. There is also a high demand for
dependability and quick shipments to keep inventory low," she
says.

Joe Klickna, product manager for Sunrise
Medical
, says there is an increased realization of features,
options and benefits.

"Therapists, users and providers are becoming more educated
about differences in materials, chair weight and technologies that
help wheelchairs perform the best they can," says Klickna. "This
ultimately benefits the user because they continue to receive a
better product and their quality of life continues to improve."

Gongwer adds that providers are concerned with finding the best
patient care for their customers but know they need to do this in
an industry where reimbursement is being cut.

Klickna says that general business pressures in addition to
those that are industry-specific make an impact.

"[Providers] have to find ways to offset those costs by looking
internally to make sure they are operating as efficiently as
possible. Everyone — both manufacturers and providers —
has to be efficient to survive," he says.

As manual wheelchairs continue to evolve in terms of pricing and
features, HME providers should look for ways to increase
opportunities and profits. The key is to be diverse in
reimbursement sources, including Medicare, private pay and retail,
which includes having a mix of products, says Serhan.

"Providers need to change their product mix so they have an
inventory for Medicare patients and for retail sales. The retail
inventory is all about lightweight, color and convenience, and
Medicare items need to be a good price and a good value," he
explains.

"When it comes to retail, there needs to be a mix of value items
and products that someone can spend more money on. You will find a
lot of people choosing products that have a premium price."

When offering a range of products, features are an important
consideration, the experts say.

"There is a continual evolution of features. A lightweight
package is near the top of what is most important for both rigid
and folding wheelchairs," says Klickna. "It is not just about being
lightweight, though, but also the ease of propulsion. Aesthetics
continue to be important as well. Customers do not want to be held
back by color choice, back or seat cushion options or wheels."

According to Rich Derks, vice president of marketing for
Medline
Industries
, HME providers are putting a greater emphasis on
cash sales, including opportunities that exist for transport
chairs.

"Providers often forget that the vast majority of wheelchair
users do not know what the benefits of a transport chair are.
Moreover, those who use walkers and rollators could very well
benefit from a transport chair," he says. "So, providers miss the
opportunity to explain the purpose and benefits of transport chairs
to these two market segments."

He adds that selling accessories to wheelchair users is another
missed opportunity.

"Wheelchairs should be ‘fully-loaded’ with all
available accessories when on display on the floor. Customers will
gain a better appreciation for the accessories available: how they
attach, how they look and their purposes," he says. "Providers
should always try to sell accessories with every chair that goes
out the door."

For providers, increasing sales requires an analysis of what is
offered and how referral sources and customers are informed of
their choices.

"Providers should spend time marketing their total offerings to
customers and referral sources. There may be adult children who are
interested in purchasing a transport chair for their parent who
does not meet the necessary funding requirements, or perhaps they
are interested in purchasing a second chair," says Gongwer.

"These consumers need to know where to go. Once providers get
these consumers in the store, they must focus on giving them
attractive options in the showroom. Providers must approach HME
retail sales like any other retail outlet where colors and features
will impress and attract potential buyers," she adds.

Retail sales of manual wheelchairs involve other strategies as
well.

"Location is important. Providers should look for a retail-style
location where there is good traffic," says Serhan. He also advises
having a Web site that gives consumers product information and a
showroom where people can look at various wheelchair options.

And, he adds, "advertising is good if you find the right market
and have the right medium. Cable news networks can be useful if
they can provide good demographic information."

Derks suggests showcasing products to referral sources. "Too
often, providers assume that referral sources know all there is to
know about wheelchairs. That is often not the case. Even the most
knowledgeable of discharge planners and therapists in hospitals
could learn a lot more about the different types of wheelchairs and
accessories," he says.

"The more you can educate these referral sources, the greater
your chance of getting referrals, especially requests for
high-margin accessories."

As with all other HME product lines, it is important to know
your market.

"Understand what your market is, whether it is Medicare,
long-term care or retail. There are variations as to what the right
product choice in manual wheelchairs is going to be. Explore those
different areas," says Klickna.

"For the retail market, paint, styling and aesthetics are very
important. People who purchase these products do not want to look
sick; they want people to admire the product."

It is also critical to make good investment and business
decisions.

"Providers need to assess their total cost of doing business.
They cannot focus on the acquisition price of a chair. If a chair
is inexpensive, it seems like a good solution, particularly with
the 13-month cap," says Gongwer. "Providers need to focus on the
total lifetime cost of a chair, especially in light of Medicare's
five-year product life expectancy."

Klickna points out that operational efficiency is key for future
success.

"As an overall industry, it will remain stable even with
pressures and is absolutely necessary. The good news is that past
and present administrations have held health care in a high regard,
and I do not see that changing," he says.

"The bad news is that we could face funding cuts, and it will be
necessary for everyone in the delivery model to be as streamlined
and efficient as possible."

Experts Interviewed

Rich Derks, vice president of marketing, Medline Industries,
Mundelein, Ill.; Carolyn Gongwer, associate product manager, manual
wheelchairs, Invacare Corp., Elyria, Ohio; Joe Klickna, product
manager, Sunrise Medical, Longmont, Colo.; and Mike Serhan,
category manager, wheelchairs, Drive Medical, Port Washington,
N.Y.