Page 16 - HME Business, January 2018

2018 Big 10 List
In terms of how providers should track these items, many of the industry’s HME business management software offer- ings offer retail features that include reporting tools to help providers track their retail performance. Also, most HME software systems also provide tools for generating custom reports that can help you drill down on the
metrics that mean the most to your business. Regardless of how
11.7 percent of overall retail sales. There seems to be no stopping this sea change of how customers shop and get much of their product information.
So how to providers approach e-commerce? It starts by picking a business model. Christina Throndson, director of business development for
a product — they expect to nd this information on your site with just a few taps or swipes on their smart phone. And if patients can’t nd what they need from your site in just a few moments, they will move onto the next site. Mobile must be a key component of your 2018 e-commerce strategy.
providers monitor retail
data, the key is that they
do it constantly. They must know how they are performing in terms of these key metrics right now, as well as be able to trend their performance.
VGM Forbin. Throndson oversees all business development by VGM Forbin for websites, social media and online advertising. She outlines three basic models for HME e-commerce:
• Model 1, Awareness—an online pres- ence meant to drive traf c to the physical location.
• Model 2, Convenience—a limited e-commerce presence designed to help patients purchase resupply items and other HME offerings online, but still in support of a physical location.
• Model, 3 Dedicated e-commerce— a business that is dedicated to e-commerce and is focused on engaging with and transacting with online customers on a regional, national or international level. Where do most providers stand?
Throndson says that based on her expe- rience with VGM Forbin customers,
a loose estimate would breakdown
with approximately 60 percent of HME providers with an e-commerce presence falling into model 1, about 35 percent falling into model 2, and only approxi- mately 5 percent qualifying as model 3.
Also, providers must have a solid mobile game. Wherever they are on the e-commerce spectrum, your site needs to provide information that a mobile customer can nd easily. A consumer’s rst step is no longer picking up the phone to ask you a question about
start outsourcing major cost centers from their business, and 2018 will likely see the continued expansion of what we like to call “the distributed provider.”
Distributed providers outsource various components of their busi-
ness such as warehousing, ful lment, ordering, online capabilities such as e-commerce, and other aspects of
their businesses so that they can focus on patient care, working on reaching new referral partners and other payer sources, and expanding their businesses.
Drop-shipping and ful llment services represent a major component of this, and is growing in popularity particularly when it comes to re-supply items. There are no upfront costs to use the service and providers pay for orders as they
are shipped and maintain their pricing arrangements privately with the manufac- turers. Many of these services integrate with providers billing systems so that they entire process can be as smooth and turnkey as possible. Moreover, all the packaging and printed communication – and often live support — can be done under the provider’s brand.
Another popular outsourced service
has been billing and collections services. There are various accounts receivable services in the industry that work to help collect patient co-pays and other fees that are due to providers. In many cases, the cost associated with having to chase these
Also, for daily monitoring any of the HME software packages offer dashboard features that can provide instant daily feedback across a variety of metrics. Just like the instrument panel in a car, dash- boards assemble key metrics into one or two simple screens, presenting them via basic graphic and numerical feedback. Like many reporting tools, most dash- boards are customizable.
The key is to use the data strategically. Start by using the data points as bench- marks so that you can get an idea of how your business currently performs. Then set company and department objectives for improving output, ne-tuning ef ciency, and increasing overall performance. Set goals, track performance on a weekly, monthly, quarterly and annually basis, and adjust accordingly.
e-Commerce
While it might sound daunting to some providers, e-commerce is becoming a business imperative in the HME industry, and it should be part of your strategic planning for 2018. Simply put, it’s where the customers are. According to a June Forbes article (bit.ly/2zqbEv4), online sales grew faster in 2016 than they had over the past three years and account for
Providers will miss considerable revenue if they don’t implement an e-commerce strategy that serves mobile users.
Distributed Provider Operations
For a few years now, providers have been hearing that they must
16 HMEBusiness | January 2018 | hme-business.com
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