By the time this issue of HomeCare goes to press you will have read many articles about the Medicare reform bill, or Medicare prescription drug plan, that will be going into effect, in part, this month. I have examined what the doomsayers predict. I have reviewed what the politicians think they have produced. I must admit, I am confused.
These last few weeks I have received many telephone calls asking me what I feel the dealers should do. My answer is, “Sit tight.”
We are very fortunate to have an association as effective as the American Association for Homecare leading the charge. They have your best interests in mind and are working very hard to rectify some of the obvious faults in the program.
Here are some specific concerns that I have about the plan:
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There will be major responsibility placed in the hands of pharmacy benefits managers. Who regulates the PBMs?
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Why will reimbursements be frozen for five years?
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Is it fair to use the Federal Employee Health Benefits Plan to set the standards for reimbursements?
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Does anyone benefit from the competitive bidding programs?
I can go on and on and continue to rant and rave, but as I said, “Sit tight.” I have enough confidence in AAHomecare to know that they will effect some dramatic changes. Please support them. They are your lifeboat.
Opportunity Knocks — Again
I have been preaching about “opportunity” for many years from my pulpit. This time when I say “opportunity,” I mean that now is a favorable time to make changes in how you market your company's services.
Are over-the-counter cash sales for you? Do you currently offer wound care supplies? Are you into rehab sales? Is diabetes a condition that you feel presents an “opportunity?” There are many areas your company can service that can provide new sales volume and profits. Take a few minutes to look around; they are beckoning to you.
For instance, do you belong to your local chamber of commerce? What a good source for new business.
Rather than wail and moan about the new prescription drug plan, or any other shoe that may drop, consider this an opportunity to change the direction your company is going.
Only you can guide your company, and as a good entrepreneur, you will. Success is your goal, not salvation.
Global Economy
It is very difficult for me to conceptualize just how large a sales market is available to our country. Our economy is no longer restricted by an ocean on either side, but has become the entire world. U.S. manufacturers have the entire world population at their fingertips.
The other side of the coin, however, is that many other countries attract American manufacturers to move their operations because, in those other countries, manufacturing costs less.
That leaves us faced with a conundrum. When a company is able to market products at lower prices, it anticipates increasing sales, profits and bottom line dollars. Staying stateside, they will pay higher taxes, but provide more jobs. On the other hand, when we send products overseas for manufacturing, we lose jobs domestically. Unemployment compensation, a reduced tax base and other related situations become sponges that eat up available funds.
How does that affect the average DME dealer? I strongly recommend that you consider carefully the source of the products you offer for sale. I know that price is often the deciding factor, and I realize that reimbursements are limited. However, the welfare of the patient, their goodwill and satisfaction with the product you provide can more than offset the few extra pennies that might be realized in a single transaction.
I like to think long term. The patient will be around, so it is vital that they are always satisfied. Be circumspect and consider all of the factors when you decide what products to offer.
Sheldon “Shelly” Prial is based in Melbourne, Fla., with Prial Consulting and also serves as the director of government relations for Atlanta-based Graham-Field Health Products. In 1987, he founded the Homecare Providers Co-Op, now part of The VGM Group. He can be reached by e-mail at shelly.prial@worldnet.att.net or by phone at 321/255-3885.
