Medtrade Keynote: We Will Survive

ATLANTA — No, that's not a line from disco queen Gloria Gaynor, whose hit "I Will Survive" topped the charts exactly 30 years ago in 1979, the same year Medtrade put on its first show. But the sentiment is just as heartfelt today, according to four HME providers who have learned to adapt and thrive in spite of industry conditions — and who intend to keep their companies viable through various business strategies designed to produce additional revenue.

With an audience of Medtrade attendees eager to do the same, the quartet of savvy business executives at a keynote discussion titled "Strategies for the Future" shared their insights on winning a bid (or not), building on current product lines and diversifying into retail.

Medtrade 2009 was held Oct.12-15 at the Georgia World Congress Center.

Since the industry's unstable conditions are likely to continue at least for the immediate future, it's imperative for providers to have a backup plan, said John Geller, president of Medical Service Co., Cleveland. The 59-year-old HME was a bid winner in Round 1 of competitive bidding, which was both the good news and the bad news, Geller said.

But the company had another strategy for maintaining profits that management thought would shelter it from the Medicare bid no matter how things turned out: They opened branches in less-populated areas. That, however, may or may not work if the HHS Secretary is given the authority to expand the bid nationwide — perhaps without a Round 2 — or to apply bid pricing to all areas, Geller said. A statement to that effect is included in the Senate Finance Committee's health care reform bill, which was passed by the committee last week.

Nevertheless, Geller said, there are a lot of other ways to acquire patients, such as workers comp, hospice and home health agencies. By focusing on areas that will remain profitable, so can your company, he said. However, he advised, providers must "plan strategically. Make sure there's a Plan A, make sure there's a Plan B and then … follow it up with a Plan C."

Robert Steedley, president of Barnes Healthcare Services, Valdosta, Ga., advised providers to get on board with change. "Our company starts with one premise: As a home care company, we can do many things well. There is not a reason why you cannot do many things and be great at many things. That attitude is very important because it removes all the barriers that prevent us from evolving and changing."