Get a Fresh Start at Medtrade

Yesterday is history! It is already tomorrow. Yes, tempus fugit. So what I am suggesting is to do the following now, there is no longer any time to wait: You must make a “fresh start.” Before you begin, please think about all of the successful projects you did while also considering those which were not as effective as you hoped they would be.

The biggest hurdle to overcome is threatened by CMS and Congress. Understand that they require sufficient capital to fulfill all the demands they face. Team up with your allies to fight this, the state DME/HME and national associations! With your support they will help bring about changes.

Next, carefully review the programs which worked, and those that did not. Expand the successful ones and repeat them as often as practical. As for the others which did not provide the needed return, study what you did and make the changes needed to make them work.

Your staff’s role is to keep the company profitable and growing. Their help is invaluable when making these key decisions. I have spoken to dealers in many parts of the United States and invariably am told how much information is sitting with your teams.

Now, it is time to plan to participate in the most important show ever, the Medtrade Expo. Despite these trying times there will be more than 600 companies to visit. These exhibitors are coming armed with new ideas, new programs and new products.

Yes, there are additional benefits. You will find available more than 120 conferences, lectures and workshops covering many topics. They will describe many new opportunities to help you continue on the road to success. You will be able to speak with the state associations, the national associations, visit the buying groups and make plans for the future.

Register now for a fresh start at Medtrade 2011, which takes place October 24-27, Georgia World Congress Center in Atlanta. THE ROI WILL BE WORTH IT!

The Alphabet Soup of Audits

What is an audit? Webster says: an audit is “a formal, often periodic examination and checking of accounts or financial records to verify their correctness.” When I owned my retail pharmacies, we were inspected once or twice annually and always received commendations for our operations. CMS and OIG have the responsibility of being sure that money is not being siphoned out of Medicare.

They have put into place some new requirements: ZPIC, RAC, CERT, MAC, PSC are all new audits. It appears that HME providers have a great deal of alphabet soup to digest. There should not be any problem for most providers other than the time required to answer these audits. My problem is if the OIG or CMS be able to discover who the providers are, or should I say felons, that are stealing from the system?

AAHomecare is leading the fight to be sure these audits are “FAIR.” From what I have read it appears that they go to every dealer with the attitude something being done incorrectly (note, I did not say dishonestly).

Add to the alphabet soup “ORG.” When I speak to providers and ask why they do not belong to AAHomecare or their state DME association I get a very weak answer. “We do not want to spend any additional hard earned dollars.” My answer is the few bucks they think they may be saving can cause them to lose their company. Now “ORG”- if you do not join AAHomecare “ORG” and your state “ORG”, you are making a very major mistake.

At the Medtrade in Las Vegas I spoke to about a dozen state association executives and to many of the AAHomecare team. I know what they accomplish! They work so hard to protect their members and our industry. When you give them your support the ROI you will receive is that your business will continue to flourish. The “ORGs” can do so much more with your support. Get on board now! They will support you, they will tone down the audits, they will find a solution to the competitive bid difficulties, and most important is that “ORG” will keep you solvent.

Creating a Successful Retail Operation (Part III)

One of the largest markets in the United States is that for home medical equipment. The problem is that I do not see enough small independents earning their share of this market.

There is no easy road to success, but the road is there. It takes planning, as I tried to outline in the two previous messages. As recommended, work with all of your employees. I have always discovered that they usually know more about their little sphere than the principal does. When you listen to them and encourage their activities, the results will be worth all the effort.

One of the best tools available to you is attending the informative state association meetings. There you will hear interesting speakers and meet many of the reps who call on you. But even more important is that with the support they give you, and all the providers in your state, they will protect your companys! Whether you have difficulties with Medicaid, reimbursements or local politics, the state associations work for their member. They can make contacts, speak on your behalf and they accomplish a great deal.

Another big opportunity can be found is Medtrade. This is always the Mecca for DME/HME dealers and providers. You will meet all of the manufacturers at their displays and learn what they can do to help you. Listen to key speakers and return home with many new ideas. Speak with your peers, work with state directors and members. It is all there for you!

Medtrade 2011 will feature a new Retail Education Center that will highlight the opportunities this area offers. The idea is to offer you ideas through the conference and the Expo to ensure you have access to the right ideas and the right partners.

Visit medtrade.com today to learn more about the retail-focused events and opportunities.

Creating a Successful Retail Operation (Part II)

When approaching the concept of retail sales for the HME industry, think of yourself as a customer walking into your showroom. Think of what you like to see when you are shopping. Customers enjoy seeing a well-arranged, well-lit showroom. They will buy products they need or might require in the future. They want to look at the retail prices on every item on display. I know that most people do not ask “how much?” When an item is not properly price marked, they invariably will walk away.

Retail cash sales make a big difference at the end of each day. Your daily deposit at the bank will show how big an impact those cash sales have made.

To help develop new retail cash sales, I suggest that you work with the reps from your preferred vendors. They can advise you about the products they have and the success other providers have experienced. In a previous blog I showed you how important they are for your company.

Remember what your market is before you make any commitment. This is best accomplished by reviewing the demographics of your community once again. Then when you, your sales team and the sales rep work together, you can choose those items that will move well. Think about this and recognize what a new retail sales opportunity will bring you into new niche markets.

By the same token, developing your strengths and working to build new volume from existing bases of business, respiratory therapy services and rehab, in particular, are very rewarding. HME providers who have really solicited their market again for these niches have been very successful.

Can a you do both, build cash sales and develop existing sales? Yes, but that depends on the strength of your staff and the ability of the principal to be a juggler and monitor several activities at the same time. Work to build your retail cash sales opportunities and develop your niche markets! Use your strength as a specialty distributor (rehab and respiratory being the major two) and expand retail cash sales. Can you do this? I think so.

Get started now, do not wait, build retail cash sales. Work with your employees, your accountant and manufacturer sales reps. Do not allow the onerous legislations affect your business. Replace what you may lose.

Creating a Successful Retail Operation (Part I)

As the impact of national competitive bidding becomes more evident and more Medicare patients are forced to receive products and services from those who “won” the bid, there will be many new problems. Some providers may be forced out of business and others will find their sales decreasing and must face that reality! Something must be done to replace that volume. Our industry has lived through many changes to the Medicare program, but few have had the potential to affect a company as drastically as what we face today.

Knowing your company has a good reputation in the community, I want to make a suggestion. I have always been a believer in developing more retail cash sales. If this is something you are already doing, consider investing in it further.

To see how this can work effectively, take a look at how companies such as Target and Wal-Mart function. They are pure retail operations. Visit the grocery chains and look carefully at how they display products. Take the time to walk through the retailers on Main Street or in the local shopping malls. I know that many of you have nice showrooms, but how does your company stack up against what solely retail companies offer?

Now, I want to see if I can help you make that even better! My view is that every provider should work to develop more cash sale opportunities and, while doing that, build sturdy niche markets. Remember, a cash sale is when the customer obtains the product they need and money changes hands. No paper work, no CMNs, no prescriptions. You must develop more retail cash sales

Many senior citizens today have discretionary dollars in their pockets and they do not hesitate to spend them for comfort items. Family caregivers, not wishing to institutionalize family members, seek places where they can obtain the products to make their relatives more comfortable, and possibly reduce the amount of time they need to spend with them.

Take the time to study which disciplines in your company produce the highest profits. Sit down with all of your staff and listen to what they have to tell you. These are starting points. Part 2 of series will address how to most effectively do this.

Special Note: If your company is currently a member of your state association, please solicit all your peers to also become members. If each just brings in one new member, it will improve the strength of the association to represent you as onerous legislations are passed and reimbursements from Medicaid change. Do this now! There is too much at stake to sit by and wait. Double the size of your association and stay solvent.

Take Action!

AAHomecare and the state associations have been leading the efforts for all HME providers to bring HR1041 to the floor of Congress and have it passed. This is the most important hurdle our industry has to overcome! The “competitive bidding” legislation is a travesty and was passed by a frightened Congress to show voters they are working to help them (?) and reduce expenses. But just the opposite has happened!

In the first markets chosen, many patients and senior citizens lost their source of products and services. Instead of proving to be effective this legislation has shown to be a disaster. Patients have been driven away from their providers where they had confidence and been serviced for years. Family caregivers no longer had the friendly provider who took good care of their family member. Many patients and families have found they have to travel large distances to obtain their supplies and service. They often have to go to more than one location. This created chaos and concern. Certainly, the beneficiaries do not appreciate that.

I receive messages from various state associations and copies of their e-mails every time they get a representative to sign in support of HR 1041. They work so hard for you. The goal is to get 230 congressmen to commit. You see, there is work is cut out for you. The task is to get more than 50% of the House of Representatives to agree to support the bill. They are getting close and with your efforts our industry will succeed.

Every HME provider has to rally behind the associations. They must get all their employees, customers, family caregivers, physicians, pharmacists and therapists involved as well. Now is the time to work closely to protect not only their future but also the well being of your customers.

Take ACTION now, to secure the future.

Manufacturers' Reps: A Solid Resource for Growing Your Company

Perhaps the most unappreciated member of the HME team of players is the “manufacturer rep” who calls on providers. Their important task is two-fold: assist their customers with marketing ideas and feature the lines they represent.

It is to everyone’s advantage to move merchandise. The sound of a ringing cash register is music to any business owner’s ears! (Play along with that metaphor even though today’s cash registers are mostly all computers.)

I have spoken with several manufacturers’ reps and from what they tell me, I recognize how important they are to you. Please listen to what they offer and study how what they feature will fit into your operation. They will work very closely with you to help your company obtain additional market share.

Hold a sales meeting with all your employees and allow the rep to speak and demonstrate his or her products. They can also make joint calls with your outside sales team if you request it. If you do, please make sure you only are presenting products they represent. Introduce the rep and allow them to make the sales pitch.

Utilize the marketing materials they offer to bring attention to their products and your location. If you have the ability, hold a Saturday morning “Open House.” Advertise that and the rep will sacrifice their morning to work with you.

Appreciate the role of the manufacturers’ rep. Please respect them and make them welcome when they call!