Last month at Medtrade Spring, I shared an elevator with an unhappy provider. Through 22 floors and frequent stops, she ticked off at least a half dozen things that made her life in the HME business miserable. She fretted over the effects of a weakened economy, ranted against reimbursement cuts and yearned for the days before Uncle Sam stuck his nose deep into the home health care industry.
With a laundry list of woes, this provider said she finally closed her doors as a result of the Balanced Budget Act of 1997. Of course I was saddened, though not surprised, to hear her story. The wave of bankruptcies, mergers, sell-outs and closings this legislation has produced is distressing, to say the least.
But considering these laments made me wonder about the difference between providers who shutter their businesses and others who prosper under the same conditions. The fact is that plenty of HME companies did find a way to survive the devastating effects of the 1997 Act — and everything that has happened in the changing health care landscape since.
What did you do, for instance, when cuts in oxygen reimbursements erased a big part of your bottom line? Are you prepared to cope if competitive bidding comes to pass? (Even the most optimistic analysts say this could be a watershed.) How do you make up the shortfall when the landlord decides to double your rent? There's no end to the daily business-related or government-generated difficulties in running any HME concern.
So what is it that keeps some companies thriving as others fail? While there's no simple answer, it does seem that the hardiest providers share several common traits. Among these are a commitment to success and a desire to find solutions; a respect for profit and a realistic view of how to create it; a well-defined business plan; the flexibility to adjust strategy when market conditions change and adversity comes calling; and, perhaps most important, a passion for HME.
There will never be just one solution to every problem that business owners face in dealing with the vagaries of market forces, politicians or landlords. But I suspect we'll find no matter what obstacles the fates throw HME providers in the months and years ahead, that once again, the savviest will survive.
Let us hear from you! We welcome your comments by mail to: HomeCare, 6151 Powers Ferry Rd., Ste. 200, Atlanta, GA 30339; by fax to (770) 618-0204; or by e-mail to Gail Walker at gwalker@primediabuisness.com.
