In today's economic environment, most Americans are looking for new opportunities and ways to enhance their current business strategies. For home medical equipment providers, that notion may seem daunting. For one thing, national competitive bidding has again become the elephant in the room. Likewise, capped rental for oxygen payments means harmful results for both providers and patients. DME cuts are also having an impact.

However, respiratory experts say opportunity exists — and providers can look to technology to increase their bottom line.

“Despite our industry's constant challenges with government policy and reimbursement, the opportunities in home respiratory care continue to grow. Chronic respiratory disorders, including COPD, asthma and obstructive sleep apnea, are at the center of the health care storm,” says Joe Lewarski, vice president of Invacare Corp.'s respiratory group. “As these disorders continue to grow in both incidence and cost, effective management and treatment in the home becomes even more critical.”

Ron Richard, CEO of SeQual Technologies, points out simply that people are going to need respiratory care going forward and more of it.

“What I look for in business is growing markets and segments of those markets that have sustainable growth. The respiratory market is a large, growing market,” he says. “If you are in home care, you want to take a serious look at it and also look at your current product lines that demand a lot of time and capital that are not contributing as much revenue and profits to your business as respiratory could.”

Technology that Delivers

In all areas of home respiratory care, new technologies continue to be developed to meet the needs of a growing population of patients. Most notably, the request for smaller, more portable devices is on the rise. Not only do patients want to remain active but their physicians want them to as well.

The oxygen market is now punctuated by lightweight, portable devices that offer non-traditional delivery options.

According to Bob Fary, vice president of strategic alliances for Inogen, providing operationally efficient portable devices to oxygen patients is important as larger, heavier equipment discourages ambulation. “This includes small, portable devices that weigh less than 10 pounds,” he explains. “These are the devices that are best for the mobility of the patients and are also endorsed by physicians who have or want healthier, more active patients.”

Richard says HME providers who are already servicing oxygen patients are looking at re-tooling or revamping their operations. “They are adjusting their delivery model to non-delivery or a mix of delivery and non-delivery and are evaluating available technologies that will have an effect on the bottom line,” he says.

Kristin Mastin, director of marketing for DeVilbiss Healthcare, agrees. “All providers should investigate leveraging technology to optimize efficiencies within their business. For example, transitioning to a limited oxygen delivery model with transfilling systems or portable oxygen concentrators can have a substantial positive impact,” she advises.

In addition, the diagnosis and treatment of patients with sleep-disordered breathing continues to increase, making this area attractive to providers. Yet new regulations do require a change in how patients are monitored.

“The sleep market probably offers the greatest opportunity for providers,” says Mastin. “However, the new CPAP LCD requires compliance monitoring of all CPAP users. Providers should focus on creating and implementing an effective OSA patient management protocol.”

The portable nebulizer segment is growing as well due to increased demand from patients. Patients who suffer from COPD and asthma now have the option of smaller portable nebulizers, which have been developed by utilizing cell phone technology.

Portable nebulizers offer several advantages, according to Tim Gordon, director of marketing for Philips Respironics' respiratory drug delivery division. He says providers can offer them as a retail product, enhancing cash sales, for COPD patients who are active and like to travel.

“These patients may have a tabletop compressor for use in their home, but many of them are not keen on taking it with them and a portable device is perfect for them, particularly if they have disposable income to pay for it,” he says.

Gordon also says there is an opportunity for HME providers who want to provide portable nebulizer units that come with an A/C power cord and a car adapter as well as reusable nebulizers, which are reimbursed every six months.