Orthopedic Softgoods

Advanced Orthopedics

Anne Walmsley, National Director of Sales www.advanced-orthopaedics.com

HC: Tell us about what products Advanced Orthopaedics offers to the orthopedic softgoods industry.

WALMSLEY: Advanced Orthopaedics manufactures high-quality orthopedic braces, supports and other non-invasive orthotic rehabilitation products designed to meet the needs of a wide variety of customers.

HC: What upcoming trends to you see for the orthopedic softgoods/O&P industry? How is technology changing the market?

WALMSLEY: Retail sales are emerging as a front-runner of all industry sales channels, and I believe we will see that continue to grow. Changes in reimbursement, consolidation of providers and a growing consumer market seeking products and services outside of the physician’s office are resulting in a much higher demand for high quality cash and carry products, including orthopedic bracing.

HC: Do you expect to see any major changes in the market in 2016 or in the future?

WALMSLEY: Although we have seen a tremendous increase in audits, reimbursement has remained stable. I believe that will change very soon. The split codes for custom and off-the-shelf bracing have been published for over two years with no change in reimbursement between the two. It is expected that CMS will announce a fee schedule change for the off-the-shelf codes in the near future.

How does you company plan to stay competitive in 2016?

WALMSLEY: Providing alternative revenue streams such as retail sales opportunities or reducing the amount of inventory needed by expanding our universal product offering are two examples of concrete ways Advanced Orthopedics is poised to assist our customers in this highly competitive and ever-changing landscape.

How can HME providers adapt to remain competitive?

WALMSLEY: To survive these turbulent times I believe that HME providers must be willing to reinvent themselves. Changes in marketing strategy, such as working with primary care physicians to drive off-the-shelf bracing orders, diversified revenue stream via retail sales and alternative channels such as on-line sales can impact the bottom line quickly.

PediFix Footcare Company

Christopher Case, Partner and CMO www.pedifix.com

What does PediFix Footcare Company offer to the orthopedic softgoods market?

CASE: PediFix offers an exclusive assortment of medical footcare products—once available only from podiatrists, orthopedic surgeons, pedorthists and orthotists—now uniquely packaged for retail sale in HME-centric stores.

Are there trends you have noticed affecting the orthopedic softgoods industry this year?

CASE: The aging population has ability, willingness and interest in self-treating their orthopedic problems—before, during, after or instead of seeking treatment by a health care professional. In addition, orthopedic specialists are moving into product-free clinical environments, in which they are no longer allowed to furnish treatment products to their patients.

Is your company making any plans for better competitive positioning for the rest for the year?

CASE: PediFix is focused on new product development. Working with its physician customers and advisors, and with a broad view of worldwide footcare markets, the firm typically introduces a dozen or so new items annually that relieve foot pain, solve foot problems, help people live comfortably and stay active.

Orthozone, Inc.

Tom Traver, President www.orthozone.com

Please describe what your company offers to the orthopedic softgoods market.

TRAVER: Orthozone is the exclusive North American supplier of Thermoskin orthopedic braces. Thermoskin is clinically shown to increase circulation and provide heat therapy for the patient.

What trends have you seen in the orthopedic softgoods industry?

TRAVER: The biggest trend I see is HME dealers adding cash sale orthopedic products. In my 25-plus years at Medtrade, last year was the first time I had more dealers asking about cash sale products as opposed to reimbursable.

What is Orthozone doing to stay competitive in 2016?

TRAVER: Orthozone has introduced a number of new, unique products in 2016. These include cash sale products such as Thermoskin Sport Knee Stabilizer and products with HCPCS Coding Verification Letters such as the Thermoskin Thermal Ankle Brace. The Thermoskin Sport Knee Stabilizer is low profile, easy to apply and has adjustable support levels. The Thermoskin Thermal Ankle Brace may be beneficial for patients with arthritis, diabetes, weak ankles, cold and sensitive feet.

In your opinion, what is the most important thing that HME providers can do to increase revenue and remain competitive?

TRAVER: Dealers need to differentiate themselves from mass merchants. This includes carrying medical grade orthopedic products not found at mass merchants, and educating customers on orthopedic products that suit their conditions.

Alex Orthopedic, Inc.

Linda Lavi, VP Marketing www.alexorthopedic.com

Tell us about your company and your offerings in the orthopedic softgoods market.

LAVI:Alex Orthopedic, Inc. markets a complete line of orthopedic softgoods. We have products that cover the neck, shoulders, elbows, wrists, fingers, back, abdomen, thighs, knees, shins, calves, ankles and feet, with sizing from youth to bariatric. The products we provide are knitted elastic or neoprene. Our items fill a needed retail position in the OSG market.

Can you talk about some trends that you have seen affecting the orthopedic softgoods industry?

LAVI: Direct-to-consumer advertising has significantly affected the OSG market. Advertisers promise improved or enhanced performance, quick joint pain relief, increased mobility and no out-of-pocket costs for insured patients. This makes it increasingly difficult for the brick and mortar stores.

How is Alex Orthopedic planning to stay competitive in 2016?

LAVI: Our multiple product lines bring economies of scale in ordering, shipping, receiving and inventory control to the retailer. Also, our ability to quickly fine-tune and modify products based on customer feedback keeps our line relevant with the end user and ensures continued product improvement.

What challenges are affecting HME and other health care providers?

LAVI: The major challenge to HME providers continues to be competitive bidding. This process has the capability of thinning out the number of providers. In order to survive this process, providers must fully embrace the retail concept. The OSG retail component can certainly help to overcome this hurdle.

Doctor in the House

Dr. Scott Fried, Owner www.docinthehouse.com

What products does your company provide in the orthopedic softgoods space?

FRIED: We produce off-the-shelf orthotics. The products that stand out for us are our patented neck-free shoulder device and our Miracle Splint wrist device.

What sets Doctor in the House apart and will help you stay competitive?

FRIED: Our products are designed by a surgeon, based on experience with patients. They offer unique approaches to common patient problems. For example, our Miracle Splint wrist device helps with carpel tunnel. It’s made with a special polymer that allows the patient to microwave a part of the device, then the device becomes semi-customized to help heal carpel tunnel and avoid surgeries.

What is the most important thing that HME providers can do to increase revenue and remain competitive?

FRIED: They should spend more on marketing to get more patients. Most people pull back in a down market, and that’s the worst thing they can do. There is a tremendous market, especially on the Medicare side. It’s growing every day as more and more baby boomers retire.