Last year began with implementation of a new law that has undoubtedly impacted the mobility product industry. The elimination of Medicare’s first month purchase option has presented numerous challenges for HME and DME business owners. However, the law has proved it is manageable because after nearly one year, HME and DME providers are still succeeding by utilizing rental ready products and business efficiency.
Select True Rental Ready Products
Do you know what makes a product rental ready? A rental ready product should be high-quality, adapted, enhanced and cost effective. Partner with a manufacturer who offers these features in the power wheelchairs you make available in your rental inventory.
Products of low quality will not last and will need to be serviced or replaced prior to the 13th month, costing you money. Ask yourself how your rental products have been adapted and enhanced by the manufacturer to meet the demands of the rental environment. Are they ready? What product innovations have been made to protect the product? Can it withstand vigorous use?
An extended 13-month warranty is crucial as products will be rented for a period of 13 months prior to becoming beneficiary owned. Even a one-year warranty is not enough as that one additional uncovered month can quickly add up in costs due to replacement parts. Remember, once the beneficiary owns it, repair and replacement parts are separately billable when needed.
Enhancements to protect product parts from wear and tear are beneficial. A colorthrough shroud; controller and shroud guards; black, replaceable seating fabric; and black, non-scuffing tires are all ideal in the rental environment to make refurbishment easy. Refurbishment kits offered from the manufacturer can also help you maintain your rental products and keep them in peak showroom condition.
Seek Support from the Manufacturer
Choose a manufacturer to work with that offers a multitude of support services and wants to help you succeed. Service networks and financing can improve your efficiency and cash flow. A large network of field service technicians can perform service to your products in locations out of your area, which is essential as it is your responsibility, per Medicare, to service your own products even if a customer moves across the country. Options such as service plans and labor
contracts can help you customize what works best for your business. The availability of refurbishment service can also be extremely helpful so that you can return your rental fleet to the field in top shape.
Financing solutions presented from a manufacturer can help you manage your cash flow in the rental environment. Seek a manufacturer that offers reasonably priced, easy-to-obtain and customized financing options. Financial consultation services from a manufacturer can also assist you in determining what solutions will work best for you in the rental market.
Develop New Business Avenues
Now is the time to think of new ways to make your business stand out above others. Advertising, positive customer relations, additional funding sources, cash sales, cross-selling and traveling to a customer’s home can all help your business grow.
Examine how you are making your business known to the public. Advertising and strong, positive customer relations can be beneficial to the health of your business. Positive experiences and feedback from customers can also assist with spreading your business via word of mouth.
You should also consider your funding sources. Are you relying solely on Medicare reimbursement? You may want to branch out to other funding sources including Medicaid, private insurance, managed care and workman’s compensation. If you are catering to the senior population, Medicare replacement plans, operated by a number of commercial carriers, are a great place to start.
Providing a full line of mobility products, such as lifts and ramps, can help you crosssell items during sales opportu-nities. Cash sales products can also help keep your business strong since they are not affected by the new medicine law. Lift chairs and travel mobility scooters are popular cash sales products that should be specially promoted as gifts during holidays or any time.
Are you willing to travel to a customer’s home for a mobility consultation, to
conduct a sale or to perform service on a product? Many people who are mobility impaired struggle to or cannot leave their homes and seek a DME provider who will come to their residences. Offering this service can increase your sales and put you a step ahead of other providers.
Senior Care Products, Winter 2011
