We have certainly progressed since the first portable oxygen concentrator was introduced to the market in 2002. The need for smaller, lighter and more clinically efficient POCs has driven the product innovation teams at the industry’s largest manufacturers, and will continue to be a factor as the POC market advances in maturity. In addition, many providers have begun reassessing and reorganizing their businesses to cope with challenging marketing conditions after the extensive reductions in oxygen reimbursement rates imposed by competitive bidding. As a result, many providers are taking an expanded look at POCs and restructuring their business models. There are a number of benefits in transitioning your business to include a POC-based inventory fleet, especially as POCs are becoming more cost-efficient, easy to maintain and clinically robust, allowing providers to maintain a flexible inventory at minimal cost.
Saving Money to Make Money
One of the greatest benefits of a non-delivery business model is just that—you don’t have to deliver! POCs are designed to run effectively without refills or repeated visits to patients’ homes that take up time and resources.
Another plus: To ease the burden of the 36-month cap, select manufacturers are offering 5-year warranties to cover repair expenses or replacement costs throughout the entire billing period. Aside from direct cost savings, including POCs in your inventory opens additional avenues for potential income—namely, via retail (cash) sales and from offering rental equipment for travelers.
Providers located in prime travel destinations where patients may require, or simply desire, an alternative unit during their stays should consider adding rental POCs to their inventory. By allocating their POC fleet for multiple uses, providers can expand their referral bases and increase profits without the need to purchase and maintain a large variety of devices.
Easy Maintenance
The technology and design of portable oxygen concentrators has drastically reduced the level of preventative maintenance required to support a fleet of POCs. Many of the units on the market require little to no maintenance at all, which will save both time and money for providers.
As technology progresses, this area will improve even more. In addition to maintenance advancements, select manufacturers are now offering their customers product training sessions free of charge. By taking advantage of these no-cost seminars, providers have the opportunity to gain troubleshooting and non-warranty repair knowledge.
As the industry continues to react to market changes imposed by competitive bidding, we will see an increase in the frequency of these assistance and training programs, as both manufacturers and providers seek to streamline the repair and troubleshooting processes for POC units.
Clinical Flexibility
When POCs were first introduced, there were strict limitations as to which patients could benefit from using them. As the technology and experience of manufacturers with these devices improved, these limitations were, and will continue to be, drastically reduced.
Patients who historically were not considered clinically appropriate to treat with POCs are now using them daily, and with much success. Manufacturers have advanced technology to better suit patient needs and offer clinical benefits that were not previously available, such as variable rise time options, adjustable pulse sensitivity, increased sensitivity for pulse dose units and even the ability to switch to a continuous flow setting if the patient ceases to trigger their pulse dosage.
The clinical flexibility of POCs will continue to advance, broadening the scope in which POCs can be used to effectively manage typically difficult-to-treat patients. Currently, select POCs offer advanced pulse sensitivity settings that aid in proper oxygen delivery for patients within the coveted “golden third” phase of respiratory inhalation. Improvements to POCs like these will only increase as innovation continues, which is a great benefit for patient comfort, and in turn, patient compliance. As the POC market matures, we will continue to see manufacturers seeking a balance between these advanced clinical improvements and the size and weight of the devices. Providers are eager to provide high flows, lightweight and long-lasting features through POCs.
This “bottom-up” demand from patients is sure to be an impacting factor in future product design; manufacturers will continue to strive for lighter, smaller devices that are also capable of offering higher pulse and continuous flow options along with longer battery life.
Another great benefit to incorporating POCs into your inventory is that many of the devices on the market have been through a sequence of generational improvements. We are at a point in market maturation where manufacturers have harnessed the desired technology and are now fine-tuning it to meet patient and market conditions. As a result of this history and experience, we will continue to see great improvements in the reliability and adaptability of these generational POCs.
Why Joining the POC Market Makes Sense
The development of the POC market has expanded exponentially since 2002, and will continue to expand in key areas that impact patient compliance and treatment, as well as at the operational level of provider business design.
When given a choice of oxygen devices, patients overwhelmingly prefer POCs due to their small size, light weight, operating duration and travel flexibility. This high patient demand is a great tool for referral sources to use to increase their numbers. The flexible inventory options in the POC market present the opportunity to adapt as your referral base changes or progresses through the disease state continuum, offering additional avenues for income through cash sales and rental options. Also of note is the limited amount of maintenance and patient visits necessary to sustain your business.
The expanded benefits of the POC market combined with continued advancements that offer financially advantageous programs and clinically robust, time-proven and efficient products provide an excellent opportunity for cost-effective provider retail growth.
