“We believe that diversification is the key to success in today's marketplace. We are not reliant upon any one source for all of our business, thereby circumventing any negative, uncontrollable influences that can destroy some companies.”
“Our short-term goal has been to critically evaluate all of our business based upon profitability and new business opportunity.”
“The most significant issues which have impacted our business were the Medicare reimbursement cuts for DME and the tightening of access to capital by banking institutions.”
“Our long-term goals are to continue to identify new products that have above-average profitability and to enter the marketplace ahead of the competition with an aggressive sales staff.”
As I read over these comments from business leaders listed among HomeCare's annual compendium of top home care companies, I was reminded of that old adage “The more things change, the more they remain the same.” These comments, you see, were from company presidents and other top managers in the magazine's first such listing — in 1991. As our staff collected information for this year's list, I was struck by how much the talk from the top sounds the same: worries over recurring reimbursement cuts, concern about consolidation, initiatives to hold down expenses.
A number of the top company players remain the same, too, though some in different incarnations. In 1991, Lincare was privately owned with only 110 locations. So was American Home Patient at 24 branches, and PSA at 23. Today, those companies all rank among the nation's top public providers with locations numbering, respectively (at the most current count), 825, 280 and 120.
Something else many home care leaders have in common stood out as I looked over that old list. The top companies have stayed top companies — whatever the industry circumstances — because they are willing to change. Through government curve balls, Medicare cuts, ever-growing competition, evolving referral sources and new rules upon new rules.
But the leaders don't wait around. While some companies' growth plans may be tentative, the top performers have already moved to take advantage of revenue opportunities the shifting landscape presents. The tactic is evident again this year when you see that some industry standouts are already putting plans into play, getting ready for the dramatic changes on HME's horizon.
Will their strategies work for you? Maybe, and maybe not. Because you serve a particular patient base that you have built on a particular product and payer mix, only you can determine your company's course to continuing success. But as always, this year's listing is a great source for ideas and comparison. Use it to see how your sales and productivity stack up against those from a selection of home care's most notable companies.
And remember that other old adage “Change is good.” Just keep repeating that mantra and think about the reason you're in business — profit — and about how making it will help you to be one of the industry's strong survivors. If you don't, there's still another business axiom that could apply: “Change or die.”
