For those enough old enough to remember the movie “The Day After,” I believe this summer has brought some similarities. And hopefully for all of us, extra time to think about our businesses.
With competitive bidding, we all received a wake-up call about what tomorrow could have been and what control we had over our future.
Emails were coming daily with call-to-action points. Every day there was some noteworthy news. People worked for hours and hours preparing their bids. Lawyers were working with organized groups to stop the process. Those who became bid “winners” were considering how they would enlarge their businesses or possibly sell to an eager suitor.
Those not in the first 10 MSAs were watching the results, too. Some were deciding whether they even wanted to be a part of the process. Others were contemplating subcontracts and all the positives and negatives that could be incurred from such arrangements.
Then we got a delay in the program and a cut in reimbursement. While not totally acceptable, it allowed us to get at least one night's sleep and maybe a few days not to think about it all.
But, time to awake again. It's the day after. What have we learned from the competitive bidding crisis? Take time with me to reflect.
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We gained more product and cost education. We have become better educated about the products we sell, why there are some products we would like not to sell and all the reasons why.
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We focused on operational costs. We concentrated on pricing, vendors and the cost of delivery. We wondered if our newly planned territory was unreasonable considering our present operation and organization.
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We met with our competitors. We gathered at small group meetings, conferences, lunches and via phone. Some of us even found allies who would work with us on behalf of our referral sources and clients. Owners began thinking about partnerships and relationships with competitors. Some began talking with people they recognized but had never spoken with.
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We listened to many unclear messages from Medicare and realized the complexity of the government's decision-making process. It activated us to be more proactive and even to become better educated about how our government functions.
For the first time, many HME business owners played the role of lobbyist and had something to celebrate for their work.
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Many who had delayed becoming accredited initiated the process. Those who had not begun realized they were faced with one rule that was not going away.
Overall, we learned one significant fact: We need to pay careful attention to our business, our costs and our future. For those managers who lived without a strategic plan, a budget or a monthly activity cost report, the competitive bidding project was an eye-opener.
While we are uncertain if and when competitive bidding will surface again, we need to be prepared. We need to manage:
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by the numbers, and I mean all the numbers.
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by carefully reviewing all sales call reports.
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by gaining a full understanding of delivery expenses.
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by reviewing manufacturer product, shipping, restocking, etc., costs.
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by analyzing territory and tracking issues.
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by considering technology that will save money, improve productivity and increase revenues.
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by reviewing employee benefits, salaries and job descriptions in light of new programs and projects.
Let's not let the lessons we have learned be forgotten. May they remain a part of our daily arsenal of management tools. If you have been napping since the bidding talk subsided, it's time to get up. Working harder, more efficiently and productively may be one of the best antidotes.
Actually, selling more may just ease the pain. There is something about more sales that will make this all easier to bear. If your sales have not increased, then go back over these suggestions and make yourself believe that you are about to bid — again, or, for the first time.
Louis Feuer is president of Dynamic Seminars & Consulting Inc. and the founder and director of the DSC Teleconference Series, a teleconference training program. He can be reached at www.DynamicSeminars.com or by phone at 954/435-8182.
