Selling personal emergency response systems (PERS) and other home monitoring solutions is both a potentially lucrative source of new revenue for HME/DME providers and an investment in their future. PERS and related solutions can extend the timeframe a person lives independently at home. In doing so, the technologies extend the time each of those people is a customer of an HME store. Of course, longer-term customers mean more income for providers. If a PERS solution enables someone to remain at home another two to six years, that’s just more business for the HME/DME provider, contends Glenn Maxwell, founder and president of Alert Sentry, a PERS supplier. “Providers can take their existing customer base and extend it another two to six years. They need to keep people safe at home—it’s a win-win-win.” Even if PERS doesn’t turn into a huge profit center for an HME provider, additional revenue also comes from keeping that customer longer. “These people need this service,” he says. “It’s much better to keep the client purchasing services and products from one location.” Technology changes are enlarging the market for home monitoring systems, and new mobile PERS systems are catering both to the elderly and to baby boomers who are still active and even traveling. Robert Flippo, CEO of MobileHelp, says the shift to mobile systems is the biggest recent change in the PERS sector. “Even homebound people may want to walk a block down the street,” says Flippo. “Mobility is a requirement.” Another trend is a shift in the market from landline telephones so that now even the home-based portion of a system is more likely to be cellular-based. New opportunities on the horizon include the ability to combine PERS with telehealth solutions that provide daily monitoring of weight and blood pressure, for example. Seamless integration of PERS with medical devices provides a potential for future add-on sales. “We’re headed down that path and will see solutions that bring in other medical devices,” says Flippo. “Our plans are to be there within a year.” Current systems are too complicated—users need a system they can self-install. “We will be announcing specific things at the end of the year in that vein,” he adds.
PERS on the Go
Embracing the trend to mobile PERS, Alert Sentry introduced the iSAFE Mobile Responder about six months ago, and the product is already more than 50 percent of the company’s business. The system combines a home-based PERS system (using cellular service rather than a landline) with a mobile component, allowing the user to push a button anywhere there is cell service and get help from a monitoring center. Instead of using a global positioning system (GPS) to determine location, the mobile unit triangulates cell tower signals to provide an approximate location either indoors or outdoors. Knowing the approximate location enables the monitoring center to know which emergency service jurisdiction to call. Not using GPS allows the mobile unit to have a longer battery life—two to three months—and the system sends text-message notifications of remaining battery life. The system costs $34.95 (or $29.95 if billed quarterly). An emergency alert goes to a monitoring center, which has access to contact information on family and friends and additional information to guide the response. Mobile PERS systems are helping to lower the age of customers who might use the system, with a younger demographic—people in their 60s and even 50s—more likely to be active outside the home. “Now 65- to 80-year-olds are more tech-savvy, and they understand that this is a technology that can really change their lifestyle,” says Maxwell. The fastest-growing demographic is those 75 to 80 years old, and PERS technology enables this group to stay at home longer. “They’re not building assisted living and nursing homes fast enough to meet the needs,” says Maxwell. By ensuring faster response in an emergency, a PERS system makes it more likely a senior will return home after an incident, he says.
Become a Trusted Advisor
MobileHelp first added a mobility component to a medical alarm system in 2009, and mobility and ease-of-use are the company’s big differentiator. The two-way voice system enables a monitoring station to alert the local EMS or to just ask a neighbor for help. When a user pushes the button, the call center knows who they are and their location. Users take along a mobile device when they leave the house, and the user can wear a wrist button or pendant that communicates with the mobile device from up to 600 feet away. Opportunities for the HME/DME channel include a referral program or a wholesale arrangement for larger HME/DME providers. Each DME provider’s marketing materials have a unique 800-number to identify the source of a sales lead, and the identity of the referral DME remains with the customer throughout the signup process. Currently, HME/DME providers can receive a one-time referral fee for new customers. Robert Flippo says there is currently no simple route for a customer to shop for PERS products, and the demographic mix of a typical HME/DME provider’s customers is an opportunity to sell through that channel. DME providers are in a good position to become a trusted advisor to help guide a customer to the best PERS system. The sector can also help to build customer loyalty. The consumer’s perception of the PERS market, built around the “I’ve fallen and I can’t get up” trademark of supplier Life Alert, is a double-edged sword, says Flippo. The phrase suggests that a customer would have to be in dire straits to need an alarm, yet the mobile component of PERS now broadens the appeal to a wider—and younger— demographic. “If you’re out and about, and something happens, you want to get help quickly,” says Flippo. “Mobility is starting to change the negative stigma surrounding medical alarms.” HME/DME providers should look to partner with a PERS supplier who provides an easy and seamless way to help their customers, says Flippo.
Educate Customers About Choices
Connect America’s Connect and Protect Partnership Program has seen a lot of success in the last year. One big HME provider, NOVA, is working with Connect America to private-label their own PERS program called DME Medical Alert. In all, more than 500 HME/DME providers around the country, all sizes and types, have taken advantage of the program, which continues to pay HME/DME providers revenue as long as the customer is retained. All customer service, billing and warranties are handled by Connect America, and there is no inventory to carry, or minimums or start-up fees. Home-based systems are $29.99 per month, and mobile units with GPS capabilities are about $10 more a month. Howard Teicher, vice president of new business development for Connect America, says more than 40 percent of new customers are either looking for a system with no landline or a GPS/ mobile solution. Fall-detection pendants are a new trend in the market, but Teicher warns HME/DME providers to investigate the systems before taking a leap of faith. Fall detection might work well in and around the home. However, mobile systems with fall detection can be subject to a high rate of false alarms, such as if the unit bangs against something. Fall detection is both less important to the more active customers of mobile systems and less effective because of high false alarms. Dealers should also do their homework related to whether a cellular system has ample coverage. The use of satellite triangulation (in addition to GPS) can make location functions more dependable. “I think the average HME provider gets inquires for these product on a weekly basis, but they don’t know where to turn or they think there’s a large investment involved,” says Teicher. “It becomes an educational process, and may take an extra two or three minutes with customers.” There are new smart phone apps for emergency response, typically calling 911. However, Teicher says the apps have downsides. Someone may not take their smart phone everywhere, such as in a shower or bath, and/or the phone isn’t always on. Also if there is an emergency, the phone has to be turned on or woken up, unlocked, and the button must be located to call 911. If an older person calls 911 on a smartphone, dispatchers don’t have his or her address or other information (such as next of kin or medication list), which would be available if the call were made to a monitoring center. Wearing a specific button that calls a monitoring center is a much simpler and useful solution, says Teicher.
The iSAFE Mobile Responder offers two-way communication though the pendant at any time.Recurring Monthly Revenue
LogicMark offers a variety of PERS solutions, including two-way voice communication. All of its systems enable users to speak directly into a pendant as opposed to the base unit. The company launched the GuardianAlert (which dials 911) in 2006, followed by FreedomAlert, which allows users to program up to four numbers and/or 911. LogicMark’s LifeSentry system connects to a central station and also offers two-way voice communication. Soon to be launched are the CaretakerSentry and SentryPal systems. The CaretakerSentry will offer a basic or two-way pendant as well as an optional cellular accessory for individuals without a phone line. An Emergency Wall Communicator is also available for the FreedomAlert, LifeSentry and CaretakerSentry. The SentryPal is a mobile unit (mPERS), which users can take with them on the go anywhere in the United States. LogicMark offers a recurring monthly revenue (RMR) model as well as a no-monthly-fee solution. If a DME provider is looking for a sale they do not have to touch again, the FreedomAlert or GuardianAlert are the answer. If DME providers prefer RMR, the LifeSentry, CaretakerSentry and SentryPal are ideal. “Our product line offers flexibility to meet the needs of any customer,” says Mindy Harrington, LogicMark marketing and business development manager. If a customer comes in looking for a wheelchair, a PERS system would be a great additional sale, says Harrington. Knowing the customer will help HME/DME suppliers excel in the PERS market, she adds. If displayed/marketed properly and if sales staff is knowledgeable about the product, additional revenue and lucrative cash flow are possible. As a cash product, PERS saves providers the time needed to get insurance approval and reimbursement. Even HME customers who do not need PERS themselves may know someone who could benefit. Advertising and marketing can help sell units. LogicMark provides resources such as talking displays, bill stuffers, videos and brochures.
A Self-Configured System
Oplink Connected, a division of Oplink Communications, offers the Oplink Connected Care C152 system, a comprehensive age-in-place medical alert system. The system enables patients to stay at home and keep their independence while feeling safer knowing a caregiver is one click of a button away. The system is designed for do-it-yourself installation in minutes with everything in one box and using an existing broadband connection, according to Oplink Connected’s CEO Joe Liu. Components include the Oplink Processing Unit, two SmartAlert Fobs, an IP camera with auto night vision and motion sensor, a free mobile app, and free self-monitoring service. A group-monitoring service upgrade is available for a low monthly fee and no contracts, extending access to an additional five authorized users and five emergency contacts, additional mobile push alerts and notifications, and automatic video recording when events are triggered. Self-configuring means the OPU automatically detects and configures each device and provides in-app control from a smart phone or tablet. All functions and features are controlled—and defined— from a smart phone. The SmartAlert Button notifies the caregiver in case of an emergency, and the smart phone app provides access to 24/7 live video viewing and alerts to enable caregivers to assess situations to decide the appropriate action or response. Additional authorized users can be added in-app by entering the phone number of each new user. Real-time alerts can be received by a multi-tier group of users—the owner, authorized users (family and friends) and emergency contacts (neighbors, property managers). Multiple locations can be configured with additional devices and sensors, controlled from the smart phone. An OPU is required at each location. Additional sensors include inactivity sensors, medical drug box sensors, fall detection sensors, and various options for video cameras. Additional products will be introduced, says Kouchon (KC) Lee, Oplink Connected’s chief technology officer. Oplink Connected is driven by a Security and Protected Network, with cloud technology built around Oplink’s proprietary solution of enterprise-level security with multiple layers of encryption, keeping data private, secure and protected.
