The respiratory product line encompasses oxygen, CPAPs/bi-levels and med neb. This sector is estimated at almost one third of the total HME market and continues to be an exciting product line where there is much creativity — and competition. There are some interesting strategies that have been used in the industry to promote this line, despite the fact that Medicare continues to put pressue on providers with policy changes and declining reimbursement.
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First, where are you competitively in this market? Do you have a high-end respiratory service including therapists, or are you only in the business of providing products? Do you have access to a med neb pharmacy as a partner for your referral sources? The point here is to get a full line in place and understand where you are in terms of a niche strategy with your line.
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Develop a great relationship with a sleep lab. It can take weeks — and months in some areas of the country — to schedule a sleep study. But remember that for non-Medicare patients you can schedule in-home studies and often use your own RTs to run them. For Medicare patients, you need a good relationship with a lab. Make sure all of the aspects needed for identifying patient issues are in place.
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Target carefully. Everybody chases pulmonologists, so think about expanding your targets to primary care physicians and cardiologists. Make sure your sales reps and operations staff know how to work with physicians who may be unfamiliar with respiratory therapy. In some areas, the docs need more hand-holding — can your people give it to them? If they can't, don't consider these target markets.
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Strenghten relationships with your vendors. Equipment manufacturers are a great source of information about products and processes; bring them into your firm to train your sales reps. However, don't focus on products alone.
Selling respiratory therapy is selling a process. You need to translate product benefits into the home care process and make sure everything is all wrapped up in a great package.
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Figure out the little things your docs need. Do they need support for their nurses on how to train COPD and emphyzema patients? Do they need help getting a back office person trained on how to handle sleep study results? Find out what is missing in your area and put it together in a classy way.
The respiratory therapy line will continue to expand as the baby boomers age, the population grows more obese and the unfortunate effects of smoking begin to take their toll. Creating a great line takes work, but it can have great rewards.
Alison Cherney is president of Cherney & Associates Inc., a Brentwood, Tenn.-based marketing and sales consulting firm, and is the producer of Homecare Power Selling, a sales training program for home care sales reps. She may be reached at 615/776-3399 or through www.cherneyandassociates.com.
