With great consternation, I read the following recently: “Medicare spends $600,000 to advertise on a blimp.” Oh, yes! The Centers for Medicare and Medicaid Services is advertising the Medicare program on a blimp that flies at sporting events. According to CMS Administrator Tom Scully, the average senior has no clue what his or her Medicare benefits are. What a blanket denunciation about a major segment of our population.
Nevertheless, CMS has budgeted $30 million for advertising to promote the program to its 40 million participants. How many benefits for ailing and needy seniors will be denied just to be able to cover the $30 million spent to advertise Medicare benefits on a blimp at a football game?
Thirty million here, $30 million there — and I just read where CMS may run out of Medicare funds in a few years. I also read that the federal government will be unable to sustain the Social Security program because there will not be sufficient dollars available for the program.
As a child growing up in the Great Depression, I learned that one had to be frugal, particularly during difficult times. Members of Congress should learn the same lesson. Our elected federal officials, who are making much “progress” in developing programs to fund Medicare and Social Security and who want to add prescription benefits for seniors, rewarded themselves with another pay raise.
And why not? Members of Congress are not entitled to Social Security benefits because they do not pay into the system. They, too, feel the pinch of skyrocketing costs of goods and services. However, when I read just how much a Congressman receives when their term in office has ended — well, I just want to run for office. The pension they receive averages more than $15,000 per month.
Federal funds just seem to evaporate, and then Congress discovers there are very few dollars left for rank-and-file Americans — but they deserved another pay raise. I guess that is where the increase in Medicare benefits goes — while every year beneficiaries have to ante up another few dollars.
Over the Counter, Into Your Pocket
Some home medical equipment dealers seem to have forgotten what money is. Money, or cash, is a commodity used as a medium of exchange and a measure of value. You have to expand your current cash sale volume and build on that as a base. Cash sales mean no forms to fill out or to submit, no signatures required, no filing for reimbursement, no waiting for your money. Yes, cash is nice.
Your goal is to see if you can supplement your third-party sales by developing as many new cash over-the-counter sales as possible. The best way to research how to do OTC sales right is by visiting one of the major marketers in the community — Target, Wal-Mart, K-Mart, the shopping mall or any large retail store. See what the major companies are offering, especially those with Aids to Daily Living or like departments. You will notice that items are mass displayed and priced. In addition, similar items are shown together, and departments are identified and brightly lit. Shoppers respond to these details.
You can do the same. Your showroom does not have to be gigantic. Research the demographics of your community to know what your customers buy (this information is in your computer, if you look for it) and build cash OTC sales.
As Oliver Wendell Holmes said, “Put not your trust in money, put your money in trust.” I want you to invest in yourself. After you have completed your demographics, you should have a better idea of which markets you can best develop. Do it! Do it now! The reason you went into business was to have the ability to earn this commodity. Now, I want you to consider setting aside a percentage of your profits to develop these OTC sales.
Build the OTC sales potentials that are available. Train your staff, send out a salesperson, prepare a catalog, study the OSHA and ADA laws, and become the center of activity in your hometown. It's very nice to hear a cash register ring.
Sheldon “Shelly” Prial is a partner with HPS Healthcare Management. In 1987, he founded the Homecare Providers Co-op, now part of the VGM Group. He can be reached via e-mail at shelly.prial@worldnet.att.net or via phone at 321/259-7127.
