Medtrade Spring was held in Las Vegas this year at the Mandalay Bay Convention Center, and you could feel the excitement the minute you entered the expo hall. The showroom floor was brightly lit and the vendors were prepared to share their programs. This was probably the most important Medtrade for the future. The attitude of the providers, as business professionals, is that they can be more successful than ever, despite any changes from CMS. This was the same thought of the vendors. My goal was to remind all attendees of the importance to belong to their industry associations, both state and national.
Rose Schafhauser, MAMES director, has always been an industry cheerleader. “I believe that the suppliers who have remolded themselves by diversifying out of traditional Medicare and Medicaid and are creative in marketing, their future is extremely bright. With 10,000 Baby Boomers turning 65 every day, those who survive in this business will be booming. The future is bright in DME. ”
The associations have always guided their members effectively. For that service we are all grateful. The following are some of the comments I gathered to heed. Diana Guth of Home Respiratory Care Sleep Solutions noticed that the showroom was busy. “As usual, I attended Spring Medtrade but my motivation went far beyond the usual. The times are drastically changing for the DME industry. The looming competitive bidding Humpty Dumpty scenario drew me to be with my peers, learn how to best navigate it, find guidance as to how to politically fight it as an individual and as part of a cohesive group, monitor the pulse of its evolution and especially explore new avenues of revenue.
“Both the federal and the private health insurance companies, to whom we are greatly beholden, are in the process of pushing down fees to unsustainable levels and inflicting increasingly difficult and costly regulations on us.
“Companies who don’t have the wherewithal to bend and diversify in order to survive and even thrive under these circumstances will go down,” she said. “Conversely, the times may push people to go in fresh, profitable directions that they may not have otherwise gone. Not having predictability for the future of one’s business is anxiety-provoking, to say the least.
“The DME needs of the public will stay and grow with the Baby Boomers, who will never own up to being ‘old.’ Their needs will have to be met. The public may need to become accustomed to paying out-of-pocket for medical devices and aides that were formerly paid for by their insurance company. The HME industry will find a way to be there for the people.”
Another friend preaching the benefits of cash business was Jeff Swain at the Carex Health Brands booth. “As the ever-changing dynamics of Medicare loom creating a more and more uncertain future for medical equipment dealers, a huge opportunity exists for the dealers who are able to successfully reinvent themselves into cash businesses. In many ways cash offers benefits over the current system of Medicare reimbursement for dealers. Cash business is just that, it is cash in the retailer’s pocket. No longer is there a need to submit and wait for reimbursement. Instead the dealer gets payment before the customer walks out the door. Another benefit is that the dealer can set their pricing at any level they wish and are no longer at mercy of reimbursement rates or dealing with any reimbursement red tape.”
To realize these benefits requires a change in thinking, however. Dealers are now competing more with national retailers and “need to take a close look at the conveniences they are offering their customers and look to be more ‘retail like.’ This includes creating attractive, cohesive retail planograms. Dealers have incredible product knowledge and can provide a level of service unparalleled in today’s HME retail setting. But to be successful dealers need to offer both service and convenience to costumers.”
The dealers, providers and exhibitors all had one important message. The future is in our hands. Despite the threat of reduced fees and other legislations, DME/HME will always be a required service. A change from dependence on third-party programs and works to build an “over the counter” cash-sale base.
Mike Hoepner gave us this message at the Essential Medical Supply booth, “For the past 20 years, the only constant in the HME market has been change. Whether it was OBRA ‘90, the Six Point Plan or competitive bidding, we've always found ways to deal with adversity.”
Providers have a unique opportunity to build a market that isn’t controlled by government rules and regulations. There are hundreds of cash only items that will be needed by aging Baby Boomers and providers can capture this market if they:
• Recognize that Baby Boomers are sophisticated shoppers who demand product quality at a fair price. Product packaging and eye appeal are also important.
• Realize that Baby Boomers want effective customer service so a trained staff that knows features and benefits of the products is critical to meeting this need.
• Identify that having only one model, color or option of an item won’t satisfy Boomers. They are used to having options in all phases of their lives and are now translating this into their healthcare.
In the end, it’s simple; Baby Boomers are the richest, most sophisticated, largest generation ever. Meet their needs and you’ll have success with cash sales.
As I meandered through the exhibits, I saw a dear friend, Ron Resnick of Blue Chip Medical. One of the most rewarding reasons to attend Medtrade is seeing people you know so well. It was obvious that he felt the same as he expressed, “You asked me how the homecare business has changed. Remember the fun we had calling on dealers? They were excited to see us, learn about new products, and help to develop marketing programs. We worked hard and created great working relationships between dealer and manufacturer.
“I am delighted to be here at Medtrade Spring 2013,” he said. “It is a venue where people can collaborate, network and discuss issues that have long-term implications. Today more than ever it is essential that dealers come to learn and gain better understandings of what they might expect in the future.
“Buying groups have provided guidance during the bid process and offer so many marketing services to help dealers recognize opportunities that are out there. Is not only about price, dealers need the whole package.
“Education will be the key to success for any dealer. We provide CEU programs to help the dealer to enhance their visibility to their referrals. We have all been through good times and bad times. Now we must all face changing times.
“The healthcare market has not changed in terms of demographics and patient needs. What has changed is where you are in the food chain. You must educate your referrals as to the proper documentation that is required and the products that are available under the bid process.
“We must all be optimistic as our industry is responsible for providing proper health care and clinical outcomes,” Resnick concluded. “We are no longer a ‘cottage industry,’ so with that being said let’s all work hard to keep our industry honest, service patients and be proud again.”
It was rewarding to see the DME principals seeking new opportunities, products and vendors. Paul Brelo of Medcenter Systems carries a simple system to sort and travel with medications. “DME retailers are an important link in helping people maintain independence and to remain in their own homes as long as possible.
“All states are facing rapidly growing budget requirements due to their share of Medicaid costs. End of life skilled nursing care is the major cost driver. Keeping people in their homes is the mantra of all state health departments.
“MedCenter Systems products target an important segment of the rising healthcare costs by helping to improve medication adherence. Poor medication adherence costs the U.S. economy about 300 billion dollars annually. Four in every 10 people admitted to a nursing home is due to poor medication adherence. Additional hospital admissions, doctor’s visits and sick days all contribute to the overall healthcare costs. DME retailers know the products they sell and are key in educating the caregiver.”
According to Lisa Bernath of Gotcha Covered, “Opportunity knocks is our theme for this Medtrade show. The announcement was made, let the show begin. The aisles filled up quickly and we were slammed with buyers looking for cash retail products. Perfect, because that’s exactly what Gotcha Covered has to offer. High quality sheeting and protectors for the home and beyond. We had existing customers come by just to thank us. That’s what we like to hear.
“There’s so much money being left on the table at the pharmacies and DMEs, sending customers away. The opportunity to increase sales and gross margin is available with us, and buyers are starting to get it. We have high hopes for Orlando...continued opportunities are upon us.”
Diane Christopher of North Coast Medical said “Senior Care Products’ and HomeCare’s loyal readers participated en masse at Spring Medtrade. What they wanted most from distributors and manufacturers were dynamic business solutions and customer engagement ideas that help push more product.
“HME providers and their supply-chain partners will work collaboratively toward creating better retail environments. Whether the build out is in the virtual space, or traditional brick and mortar, customer engagement strategies must strive to create meaningful retail experiences. This will require taking cues from progressive consumer product marketing companies and focusing on how products make people feel as much as on attributes.
For companies that want to succeed in the HME space, thinking outside the box and offering real solutions will be the differentiator to win and keep happy customers.”
Ted McGraner of Definitive Homecare Solutions said “The show floor at Medtrade is always an interesting experience. This year’s spring show was no exception. It is always fascinating to speak to people about their software needs. This gives us a unique opportunity to hear about how providers are finding new ways to service their patients amid a flood of regulatory changes. As a software vendor, we have had the opportunity to communicate with attendees about new features that will help meet their business requirements. This year’s show was very much in keeping with the spirit of Medtrade; giving us the opportunity to exchange ideas with the industry leaders.
“We, as all of the other vendors, also had the opportunity to meet directly with our customers. This is a wonderful chance just to say hello and ask how their business is doing. Positive responses in the face of adversity; these are refreshing to hear. It gives us all a sense of camaraderie.”
Every one of these messages is important. Ben Franklin said: “America can no more survive and grow without big business than it can survive and grow without small business.” Please be sure not to miss the Fall Medtrade Exhibition. It will be held on Orlando, Florida.
