The manual wheelchair market offers many opportunities for HME providers who want to increase sales and diversify their customer and payer mix. And whether they are looking to satisfy Medicare orders or retail sales, features and price both play an equal part.
"There are two markets. There is the DME market where the provider is providing wheelchairs to the Medicare market, and in the reimbursed market, providers want a good quality product at a good value that is going to last through the cap," says Mike Serhan, category manager, wheelchairs, Drive Medical.
"Then, there is the retail market. In this scenario, it is what the customer wants, not what the provider wants. They want a product that is lightweight, stylish and functional."
For Medicare-reimbursed manual wheelchairs, cost is a considerable factor.
Carolyn Gongwer, Invacare's associate product manager, manual wheelchairs, says that as reimbursement in the manual wheelchair market declines, providers are looking for a quality chair at the most economical price possible.
"Everyone wants more for less. There is also a high demand for dependability and quick shipments to keep inventory low," she says.
Joe Klickna, product manager for Sunrise Medical, says there is an increased realization of features, options and benefits.
"Therapists, users and providers are becoming more educated about differences in materials, chair weight and technologies that help wheelchairs perform the best they can," says Klickna. "This ultimately benefits the user because they continue to receive a better product and their quality of life continues to improve."
Gongwer adds that providers are concerned with finding the best patient care for their customers but know they need to do this in an industry where reimbursement is being cut.
Klickna says that general business pressures in addition to those that are industry-specific make an impact.
"[Providers] have to find ways to offset those costs by looking internally to make sure they are operating as efficiently as possible. Everyone — both manufacturers and providers — has to be efficient to survive," he says.
As manual wheelchairs continue to evolve in terms of pricing and features, HME providers should look for ways to increase opportunities and profits. The key is to be diverse in reimbursement sources, including Medicare, private pay and retail, which includes having a mix of products, says Serhan.
"Providers need to change their product mix so they have an inventory for Medicare patients and for retail sales. The retail inventory is all about lightweight, color and convenience, and Medicare items need to be a good price and a good value," he explains.
"When it comes to retail, there needs to be a mix of value items and products that someone can spend more money on. You will find a lot of people choosing products that have a premium price."
When offering a range of products, features are an important consideration, the experts say.
"There is a continual evolution of features. A lightweight package is near the top of what is most important for both rigid and folding wheelchairs," says Klickna. "It is not just about being lightweight, though, but also the ease of propulsion. Aesthetics continue to be important as well. Customers do not want to be held back by color choice, back or seat cushion options or wheels."
According to Rich Derks, vice president of marketing for Medline Industries, HME providers are putting a greater emphasis on cash sales, including opportunities that exist for transport chairs.
"Providers often forget that the vast majority of wheelchair users do not know what the benefits of a transport chair are. Moreover, those who use walkers and rollators could very well benefit from a transport chair," he says. "So, providers miss the opportunity to explain the purpose and benefits of transport chairs to these two market segments."
He adds that selling accessories to wheelchair users is another missed opportunity.
"Wheelchairs should be ‘fully-loaded’ with all available accessories when on display on the floor. Customers will gain a better appreciation for the accessories available: how they attach, how they look and their purposes," he says. "Providers should always try to sell accessories with every chair that goes out the door."
For providers, increasing sales requires an analysis of what is offered and how referral sources and customers are informed of their choices.
"Providers should spend time marketing their total offerings to customers and referral sources. There may be adult children who are interested in purchasing a transport chair for their parent who does not meet the necessary funding requirements, or perhaps they are interested in purchasing a second chair," says Gongwer.
"These consumers need to know where to go. Once providers get these consumers in the store, they must focus on giving them attractive options in the showroom. Providers must approach HME retail sales like any other retail outlet where colors and features will impress and attract potential buyers," she adds.
Retail sales of manual wheelchairs involve other strategies as well.
"Location is important. Providers should look for a retail-style location where there is good traffic," says Serhan. He also advises having a Web site that gives consumers product information and a showroom where people can look at various wheelchair options.
And, he adds, "advertising is good if you find the right market and have the right medium. Cable news networks can be useful if they can provide good demographic information."
Derks suggests showcasing products to referral sources. "Too often, providers assume that referral sources know all there is to know about wheelchairs. That is often not the case. Even the most knowledgeable of discharge planners and therapists in hospitals could learn a lot more about the different types of wheelchairs and accessories," he says.
"The more you can educate these referral sources, the greater your chance of getting referrals, especially requests for high-margin accessories."
As with all other HME product lines, it is important to know your market.
"Understand what your market is, whether it is Medicare, long-term care or retail. There are variations as to what the right product choice in manual wheelchairs is going to be. Explore those different areas," says Klickna.
"For the retail market, paint, styling and aesthetics are very important. People who purchase these products do not want to look sick; they want people to admire the product."
It is also critical to make good investment and business decisions.
"Providers need to assess their total cost of doing business. They cannot focus on the acquisition price of a chair. If a chair is inexpensive, it seems like a good solution, particularly with the 13-month cap," says Gongwer. "Providers need to focus on the total lifetime cost of a chair, especially in light of Medicare's five-year product life expectancy."
Klickna points out that operational efficiency is key for future success.
"As an overall industry, it will remain stable even with pressures and is absolutely necessary. The good news is that past and present administrations have held health care in a high regard, and I do not see that changing," he says.
"The bad news is that we could face funding cuts, and it will be necessary for everyone in the delivery model to be as streamlined and efficient as possible."
Experts Interviewed
Rich Derks, vice president of marketing, Medline Industries, Mundelein, Ill.; Carolyn Gongwer, associate product manager, manual wheelchairs, Invacare Corp., Elyria, Ohio; Joe Klickna, product manager, Sunrise Medical, Longmont, Colo.; and Mike Serhan, category manager, wheelchairs, Drive Medical, Port Washington, N.Y.
