The federal government has been obliged to budget money (a great deal of money) to cover some rather pressing issues — issues that make up a major part of the news we all read daily.
My concern is what will happen to health care, in particular to home medical equipment providers and home health agencies? Where is the money going to come from to allow normal services to continue? If the pressure that is being put on this industry to save dollars continues, health care in the United States will be reduced to the lowest common denominator.
The continual decreases in reimbursements are leading many manufacturers to move their operations to foreign lands and putting smaller HME dealers out of business. Unemployment benefits and the jobless rate increase, and that costs the government more money.
Small business and manufacturing have always provided a large tax base and many jobs. We must protect that base. You must protect your business. As profit dollars melt away, they must be replaced with new ones. You must look for new opportunities, build over-the-counter sales and new cash business.
The secret is two-fold: First, study your market, because it may have changed since you began your operation. The demographics can provide some clues about new opportunities. Second, build new sales from existing inventory and grow in that fashion. One excellent example I can offer is to sell products used by emergency medical technicians. As long as your company offers any type of oxygen services, you already are stocking the items that EMT squads use. Your normal OTC inventory includes stethoscopes and sphygmomanometers, and everything from scissors to Kelly clamps.
Have you tried selling to local industry? Do you service the schools and universities in your community? If you haven't, check requirements for the Americans With Disabilities Act as well as those from the Occupational Safety and Health Administration, which can provide you with some interesting tools.
Medtrade Spring Report
Medtrade Spring, held this year in May at the Las Vegas Convention Center, reached a new level of professionalism. I was impressed with the venue and how the showroom floor was set up.
But this was only the frosting on the cake. The seminars were filled to capacity with subjects for everyone, and they all had to do with helping attendees expand their business, cope with changes in legislation and prepare for the future.
As one of the fortunate people who have attended every Medtrade meeting, I cannot wait for Medtrade in Atlanta this fall. I anticipate the floor will be jammed, so I suggest you register early.
Au Revoir
Occasionally we meet someone who is so charismatic that he or she makes an everlasting impression. When that impression is followed up by an effective work ethic that gets results, it is a very happy experience. It is with mixed emotions that I congratulate Tom Connaughton as he moves on with his career.
During his tour of duty as the head of the American Association for Homecare, Tom led the Association through some extremely trying times. His steady hand at the helm was recognized by the entire industry as the voice of AAHomecare to Congress reflects the needs of an entire profession.
Thank you, Tom Connaughton, for the services you meshed into the fine organization that AAHomecare is today. I say to Tom, “au revoir,” not “goodbye.”
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 888/367-7208.
