Friday, August 27, 2010

Reduce Dependence on Medicare

At the last Medtrade, I spoke to more than a dozen providers to determine just how much they depend on a flow of dollars from Medicare. They told me the percentage of dollars from this ranged from 20% to a wee bit over 40%. This appears to be the normal for most providers.

In the past, I have suggested that HME providers keep the percentage of Medicare and Medicaid dollars to about 20% of their total cash flow. When I say this, I do not recommend that one cease to accept third party sales, but providers must be sure they build each of their other disciplines to increase total volume.

There are many opportunities, which can be investigated. The best place to do this is at Medtrade. Attending the lectures will open up many ideas. You will meet lots of vendors who are offering new programs. They are at Medtrade to find more distribution centers. Your company can build a new cash flow by offering their products. Study them.

It is also just as important to spend time with all the vendors who have been supporting you. Learn about any new items they have and the special programs they may be offering. Be sure you say “thank you” to them for all the help they have given your company.

Build new disciplines and find new services. Increase your OTC cash sales!

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