ATLANTA--In larger numbers than ever reported, home medical equipment providers participating in HomeCare's 2007 Retail Survey said they intend to increase their retail sales this year. That's a big jump from the 58 percent of providers who said they were interested in doing more retail business in 2003, the last year the magazine's survey was conducted.

Overall, retail sales average only 14 percent of these providers' revenues, but many said they are looking to retail to replace revenues lost to recent Medicare reimbursement cuts and the anticipated effects of national competitive bidding.

The survey numbers reflect another shift the majority of providers reported: 68 percent find their customers are willing to pay out-of-pocket for the equipment and products they need. And 51 percent said they have seen increased business from walk-in retail customers over the past year.

Recognition that this retail gap is there to be filled--and that it's growing--is fueling plans for many of the home care companies in the survey group.

--As a whole, providers said they are doing more advertising in the retail area. Sixty-one percent said they currently advertise/promote their retail products, and about half said they now participate in vendors' co-op advertising programs. Those that do overwhelmingly said these programs are helpful, but also said they would advertise on their own without any help from vendors.

--One-third have expanded or remodeled an existing showroom within the past three years, while a quarter have added a new location with a retail showroom. Forty-four percent said they are considering remodeling/expansion plans.

--Twenty-two percent said they now change their showroom displays whenever new products come in. That number also has increased dramatically, up from only 13 percent in 2003.

--Significantly more current respondents also track revenue separately for retail customers vs. medical referral customers than did in 2003, 55 percent vs. 30 percent.

In one side note, 67 percent of the providers in the survey group as a whole said they intend to participate in competitive bidding. But, of the surveyed companies with revenues under $1 million, only 43 percent indicated they plan to bid.

To gauge your retail business against that of other providers, see HomeCare's 2007 Retail Survey in the March issue, available online at http://homecaremag.com/mag/medical_retail_survey/.