Out with the old and in with the new—a common saying in the name of technological advancement—but should it apply to trusted medical devices? HME/DME providers have long been supplying quality products for their diabetic customers, but new trends in compatibility and feature sets are quickly emerging. Providers that are not embracing these new products could find themselves left behind.
If you asked your diabetic customers five years ago what they were looking for in a blood glucose monitor (BGM), you would more than likely hear something along the lines of, “I just need something that will show my blood sugar levels.”
If you asked that question today, or two years from now, you might be surprised at the response. While simplicity is still something to be valued in today’s market, the developing needs of this customer base is as evident as the change in the demographic itself. From 1980 to 2010, the CDC reported that the number of newly diagnosed adults ages 18 to 79 more than tripled. And in 2011, about 16 percent of new diagnoses were given for people ages 18 to 39. Simply put, the diabetic population in the United States is changing and growing—and with that growth, needs are changing as well.
Shaping The Market
You can still find meter systems out there that need to be manually coded, or meters that have little to no memory settings, but for the most part those outdated products have gone the way of the dinosaurs.
Today you will find that the basics occupying the shelves offer feature sets like auto-coding, multiple alarms, memory storage and test log averaging—and the options only increase from there.
In recent years, a number of high-tech advancements have shaped the BGM industry. Chief among these changes are the ways in which users log results.
There are several meters on the market today that automatically sync with a user’s smartphone, and are capable of doing so wirelessly, eliminating the need for manual downloads. This allows the user to chart and visually compare their results within seconds. Newer technologies have even developed a meter that sends your results via cellular network.
Other advancements include bright visuals, color monitors and pre- and postprandial markers at the push of a button. Need a meter that plugs directly into your computer? One of those is now available as well. But why stop there? You can buy a meter that graphs your results right on its screen, eliminating the need to upload to a computer altogether.
What You Need to Know
The need for these high-tech devices is evidenced in the number of benefits they can provide for diabetes management. However, the most important question to remember before diving in and stocking your shelves with the latest and greatest supplies is, “Will my customers want to buy/use this?”
Remember, as with all technological advancements, there are always a few early adaptors, and the rest of the general population slowly follows over time. Countless resources exist, online and in print, that can be added to your reading list, but why not utilize free feedback instead—the interested party standing opposite you at the checkout desk.
Consumers are more willing than ever to share their thoughts and opinions, especially if it relates to their health, or more likely, their pocketbooks.
A common phrase in the industry today is, “It all comes down to price.” With some of the more advanced meters ringing in at as much as $149.99, consumers must consider if it’s truly worth the cost. Keep in mind that some high-tech meters are not covered by insurance and immediately narrow your market down to the cash paying customer.
Making A Profit
If you are among the HME/DME owners concerned about diminished reimbursement, here are a few tips to keep your customer base and still make a profit.
Evaluate the cost and return of every product. With Medicare reimbursement significantly reduced, certain products may simply be out of the question for your business to maintain a profit.
Pursue cost effective alternatives to the big-brand names. There are several companies out there that provide meters and strips that are as reliable and effective as the big names, but at a cost that benefits you and your customers.
Look at other means of accomplishing the same goal. There are products on the market, such as the Glooko mobile connector, that connects 17 different brands of BGMs to a smartphone. Glooko offers a diabetes management system, bridging providers and patients. This allows you to remain attractive to the high-tech consumer, but does so in a more cost effective manner.
Evaluate your customers’ needs. If a particular brand of high-tech BGM is consistently being requested, discuss ordering details with your distributor.
Remember, cost is just one piece of the Medicare puzzle. With inherent reasonableness driving prices down, providers must now compete on customer service and value-added benefits as well.
Further differentiate yourself from the competition by utilizing the exclusive resources of your current BGMs—ask your providers if they offer items like a wellness program or diabetes wellness kits.
Ensure that your products come with 24/7 customer support. Certain high-tech products and brands can leave you high and dry when it comes to customer satisfaction and support for those products.
Ultimately, it comes down to market demand. Being actively engaged with your customers and their needs is a great way to gauge the demand for such high-end products, but also a great way to build and maintain customer relationships. New BGMs emerging on the scene can do some remarkable things, all in the name of better disease management, but if the price points and consumer demand aren’t there, neither are your profits.
