With the many changes in our industry and all of the negativity you hear, I am sure you have asked yourself this question: “Why do we do what we do?”
Remember when you started your company? Why did you decide to go into the home medical equipment and/or pharmacy industry? There were different reasons for all of us. I find that a lot of us are clinical specialists who entered this field to help others and make a difference in patients' lives, but we never dreamed 30 years ago that things would be where they are today, huh!
I have been in the pharmacy and HME industry basically all of my life. I grew up in a pharmacy counting pills at a very young age and loving being beside my father as patients walked in needing his advice or services. I love what I do and enjoy going into provider's offices to assist in making decisions that will enable them to streamline, grow and give the care their patients and families deserve.
Even with the changes, this is still an excellent industry. It is being a great business leader today and being willing to make changes and think outside the box that will keep you growing and striving in this industry.
With equipment capping out in 13 months, what provisions have you made in your company to maintain the patient-owned equipment when a patient calls? Do you have a repair/maintenance fee schedule internally that all employees are aware of? When a patient calls requesting repairs on equipment not under warranty, do employees know what your charges are? Do you accept assignment on repairs if you are a non-participating provider?
I hope by now you have performed an analysis of “your” costs to do repairs and maintenance on these patient-owned items. I was in an HME office a few weeks back when a patient called in with a capped-out hospital bed no longer under warranty. The company sent a tech out to repair the bed without any cost to the patient.
How can you afford to do this? You need to know what it truly costs you to do business, decide what you can and cannot provide and at what costs to the patient.
Retail locations are popping up everywhere as a way to diversify. Have you performed an analysis of the zip codes surrounding your retail location so that you know what you should carry in your stores? Sales consultant Louis Feuer has spoken for years about doing your homework prior to adding lines to your existing company.
Check the average income of the area you are in. Look at what your competitor does not carry. What does your community need for you to carry? Find out he basic information you need, then plan your retail section very carefully. Every square foot counts.
Figuring out how much income you are bringing in per square foot based on the rent you are paying may tell you to look at different lines of equipment, supplies or giftware than what you tried initially. Retail takes a lot of trial and error; some things work and some do not.
Keep items updated and merchandised attractively so people want to shop in your store. The Walmart greeter idea is not a bad idea. I see those in a lot of larger retail stores providers have opened, and they have found the concept very beneficial.
While you are looking at ways to grow revenue, remember to keep your documentation in order and stay prepared for audits, which seem to be increasing weekly for Medicare, state Medicaids and third-party carriers. It seems everyone wants money back in their budgets, and HME seems to be a perfect industry to fulfill those needs.
In spite of the changes and the regulations we must deal with, I know we do what we do because we care. Whether it was a loved one who got sick and needed care or whether we knew we could benefit patients if we opened an HME company or pharmacy, we got in this business for the right reasons. And now, we need to continue to be there for our patients, their families and our communities.
As the changes keep coming, remember we have been through this in different ways for many years, and we will make it through whatever obstacles come our way.
Jane Bunch is president/CEO of Jane's Healthcare Consulting based in Marietta, Ga. A reimbursement specialist, Bunch delivers educational seminars, helps develop corporate compliance plans and serves as a consultant for fraud and abuse cases. She can be reached at 770/366-0644 or at billhme@aol.com.
