As competitive bidding and Medicare reimbursement changes continue to affect the oxygen therapy market, many providers have begun to consider a variety of approaches to the “do more with less” environment. The 36-month (three-year) rental cap, coupled with low reimbursement rates, has largely impacted the liquid oxygen market, spurring a switch to nondelivery modalities such as concentrators as providers seek to stretch their 36-month profits over a five-year period as cost effectively as possible.
With these changes, and many more on the horizon, introducing your business into the portable oxygen concentrator (POC) market may seem like a win-win, but before jumping in there are a few things you should consider.
What Are Your Needs?
First, identify the needs of your business. Look at your unique business model and consider where the POC market could complement your current business model. Next, take a look at your referral activity. How many referrals do you receive monthly, and how many do you want to fulfill with a POC? In observing where you stand in your current business model, and projecting the areas in which you could introduce POCs, you will be prepared to develop your new program.
Next, research the various device options on the market. Do some legwork and look into which POC will work best for you and your patients, both from a clinical as well as a financial perspective. Introducing your business to the POC market is an investment that should be conducted with a company you trust and one that offers the device, innovative financial solutions and support you need to be successful. There are a number of devices on the market, so do your research and ensure that your chosen manufacturer has the elements you require.
Choosing the Right POC for Your HME Business
The first step is to research the various POCs available. There are many options on the market and you should choose the device that best fits your clinical and financial needs. One key to choosing the right device is to understand the clinical application of the unit. Review your referrals and the prescriptions you expect to fill with your new POC. Additionally, take a look at how these prescriptions may change over time. How do you see your POC business filling these needs? It can be costly to purchase new units for patients whose disease progresses outside of the limits of your chosen POC. Eliminate this extra cost by choosing a POC that can grow with the patient throughout their disease state.
Other important aspects to note when choosing your device are bolus size and features that encourage patient compliance and portability. When researching the bolus size and the ability of the unit to titrate the patient, be wary of marketing gimmicks. Manufacturers should provide scientific studies that back up their claims, and they should be able to produce side-by-side comparisons illustrating their device’s ability to titrate a patient to full saturation, both at rest and during ambulation. Features that promote patient compliance are also vital. Each device is different, so contact your chosen manufacturer to better understand what features their device has to offer. The last feature to consider when choosing a POC is portability. The beauty of a POC is that you can take it with you. Work with your local representative and have them demonstrate a working unit. Pull, carry and walk with the unit yourself to get a feel for its decibel level in various positions, as well as its weight and the ease with which it can be transported.
Innovative POC Financing Options
When you have narrowed your choice down to a few major players, schedule a meeting with each manufacturer and ask their representative to build a unique financing package that fits your needs and where you see your POC business going. The development of a mutually beneficial partnership between yourself and your chosen manufacturer is the most important step in this process. Don’t be afraid to ask the tough questions.
Manufacturers are a great resource and have developed a variety of competitive bidding-friendly solutions to aid in your success. Programs offered can range from service programs, rental programs, leasing options and payment plans, as well as a variety of additional financing solutions. Some manufacturers have also developed investment tools that show comparisons of cost vs. revenue for a range of products, as well as for businesses weighing the options of delivery as opposed to nondelivery modalities. Reach out to your preferred manufacturers and ask about the programs they offer and decide which is best for your business model.
Summary
The development of a POC program is a great way to diversify your business and provide additional options to your patients. By analyzing the needs within your business model, researching your options and forming a partnership with the correct manufacturer, the POC market may just be the perfect fit for you and your business.
