HC: Describe the Fleet Management program.
BL: Reimbursement pressures are putting the squeeze on providers, and have been for some time. With audits as a major concern and the fluctuating rules and rates, providers face a tough climb to keep their businesses in the green. It is important to remember that buying a quality product that stands the test of time from the beginning saves money. It’s not how you buy but what you buy that makes a difference in the long run.
Fleet Management is an approach that savvy providers are using to manage the portfolio of products that they offer. It looks at the total cost to serve a beneficiary, which includes costs such as maintenance, tracking, delivery management, financing, regulatory compliance and health and safety management. Successful providers are looking past the initial purchase price to products that offer the lowest total cost of ownership. It is a shift change, but engaging in a fleet management approach can improve efficiency and productivity and reduce overall costs, providing long-term success.
Standardizing on high-quality products will not only allow you to better serve your customers, but will also improve your bottom line. The current business environment is complex and challenging. You need a sustainable business model that can build profits. The best way to drive success and achieve regulatory compliance is standardized Fleet Management.
HC: In what ways can those involved benefit from this approach?
BL: Every day, providers are juggling a number of large issues like inventory control, product maintenance, delivery management and regulatory compliance, while trying to keep product costs low. It’s critical to recognize these issues are connected. A Fleet Management approach can address all of these concerns. Fleet Management solves the problem and minimizes the symptoms providers face today.
Our research has shown that a healthy business starts with a strong core of fleet products that stand the test of time. Financially strong, best-in-class homecare providers purchase high-quality rental fleet products. Creating a rental fleet of durable, high-quality products allows you to rent products longer while minimizing your total operational costs. A longer useful life means more provider profit. It also allows you to keep your focus on what really matters, providing superior patient care.
HC: In what other ways are you supporting your HME provider/reps?
BL: At Invacare, we recognize that our success is directly linked to our providers’ success. We want to be a key partner for providers. That is why we’re speaking about a Fleet Management approach. We looked at what successful providers are doing to offset the current challenges, and it’s a focus on lowest total cost of ownership.
Some providers have already adopted this approach. In doing so, they are taking the right steps and positioning themselves for current and future success. For those providers who are looking to make a change, they might see the logic but be deterred by what that entails. These providers might have existing inventory on hand, or be firmly focused on keeping their monthly product acquisition costs as low as possible to deal with the changes in reimbursement levels. Building a fleet of high-quality products that will truly have an impact on the longevity of a provider’s business takes time and strategic planning, but there are resources that can help. At Invacare, we have a number of tools to help put a provider on the right path, beginning with our Fleet Builder program.
Even with your existing fleet of products, it is easy to get started with Invacare and the Fleet Builder program. With decreasing reimbursement rates, you’re trying to keep monthly costs low, and Invacare Credit Corporation offers many financing options. We’ve also fully built out our lines of oxygen, lifestyle and rehab products, which means that providers can meet all of their needs with one manufacturer. So Invacare has the products to meet a provider’s fleet management needs, the financing support to help them get started and experts on hand to help set the process in motion.
Brian LaDuke is vice president of enterprise marketing at the Invacare Corporation. Visit www.invacare.com and www.invacare.com/fleetmanagement.
