Page 20 - HME Business, March 2018

to get every penny out of every transaction,”
he continues. “An oxygen non-delivery model eliminates service costs for homecare providers and puts them in position to thrive in the low reimbursement era. Manufacturers, including CAIRE, all have designed products and crafted programs designed to make this possible for homecare providers. A good option is bundling
a portable and stationary oxygen concentrator and it is often more affordable than many realize. Providers are encouraged to talk to their manu- facturers sales representatives about these bundling options, and have a discussion to establish the cost of ownership. There are also plenty of leasing programs available through manufacturers that let homecare providers get the monthly payment they need to maximize their cash ow.”
“Successful providers keep the patient at the forefront and provide them with equipment that meets their lifestyle,” Jacobs adds. “POCs are complex medical devices and some patients may just feel more comfortable with a simpler solution. Successful providers balance clinical considerations and patient preference with the economic realities of the business.”
Portable Oxygen Pro-Tips
There is much to consider when growing a probable oxygen business. As mentioned earlier, experts agree that a well thought out strategy
is necessary to navigate its many moving parts. Lyman offered these key tips to help in formu- lating a blueprint to success:
• Know your true overhead costs.
• Create a pro tability calculator so you know
your exact ROI.
• Take advantage of manufacturers’ willingness to
offer nance options.
• Make sure you have respiratory therapists
on staff so they can appropriately titrate the patients to make sure the POC will saturate the patient to what the physician ordered.
• Explore multiple POCs. Not all POCs will work on all patients. It is good to have a few different
POCs to accommodate your patient population. • You must make sure that you cut your overhead
expense.
• Do not be afraid to sell extra batteries for cash.
An AOB will be needed if you bill the POC.
• Let referral sources know that you have a POC
program.
For Marquad-Schultz, it’s all about keeping it
easy for the patient.
“Patients bene t via improvements in quality
of life and lower morbidity from mobility from
a POC the most when they use it the most,”
she says. “That means you need capacity in terms of milliliters per minute (mls) coupled
with compact size and weight so they wear or carry the POC. Basically, two categories are available to patients today: less than 3 pounds in a 1 to 3 lpm equivalent pulse dose and less than 5 pounds in a 1 to 5 lpm equivalent pulse dose POC and with at least 600 mls in 3 pounds or less and 1,000 mls or more in 5 pounds are the most popular. Patients should be able to
use up a 25 foot or 7.62 meter supply tubing
and cannula, which is a common length for a stationary concentrator giving the patient plenty of room to move around.”
Marquad-Schultz adds that patient-removable batteries make it easy to swap out batteries while traveling and replaceable sieve beds make it easier to service units right in the store.
“No removable batteries or sieve beds require the unit to be returned to the factory for service and the patient having to use a loaner POC,” she explains. “This is problematic when the patient is traveling, which is a key bene t of using a POC.”
Finally, patients and caregivers need a POC that has straightforward easy-to-understand controls, indicators, and alerts.
Clement agrees with the earlier suggestion to always evaluate the patient’s clinical and lifestyle need when selecting a portable system.
“Each patient is unique,” he says. “So consider potential changes in patients’ disease state. The device meets their needs today may not meet their needs in the near future.”
He adds that providers should opt for a device that can be serviced locally. POCs are mechan- ical devices and all POCs will require service
at some point. If the service can be carried out on-site, you can provide better patient service and keep service costs down.
Finally, consider the added value of remote device management and connected technology to help lower costs while maintaining patient contact and potential proactive care.
Coppola suggests partnering with a manufac- turer that will ensure the following:
• Compatibility — Working together effec-
tively as a team will help identify any problems
and will lead to a better outcome for all. It is important for both the homecare company and manufacturer to recognize the unique individual needs of each partner up front. If the partners are not familiar with each other and do not fully understand each other’s goals then neither party will get what they want
out of the partnership. Take the time to sit with your manufacturer’s representative and have these discussions before you jump into a partnership.
• Communication — Establishing and maintaining effective communication is imperative. This will not only foster the relationship, but it also will lead to better outcomes. Do not just create a program with
a manufacturer, and ‘set it and forget it.’ This almost never works. Be sure to establish a regular meeting cadence and use this formula to share ideas of what is working and what is not for continuous improvements. An effective partnership is impossible without effective communication.
• Commitment — In the book, “Marketing Services: Competing Through Quality,” authors Leonard L. Berry and A. Parasuraman state
that ‘relationships are built on the foundation of mutual commitment.’ They are right! Ensure that your manufacturer partner is committed to your success and return the favor.
From here, Coppola says that providers review their current and future marketing plans and look to improve the following:
• Print advertisements — Co-branding print
ads have proven to be a successful way for the manufacturer to help the provider promote their products. Today’s print opportunities are endless: direct mail, brochures, newspaper and magazine ads, yers and more. Many manu- facturers have print ads ready to go or can be resized quickly for when that local advertising representative calls you.
• Digital — Whether you have hired a digital expert, rm, or are handling it yourself, consider partnering with your manufacturer on exploring digital advertising opportunities that could increase your frequency and reach. Your level of investment could leverage the opportunity to
“Over time, POCs do cut cost.”
— David C. Lyman RRT, VGM & Associates
“For anyone
considering
getting more
involved in the
POC market,
rst understand
your current
portable patient base and work associated with it.”
— Anthony LaCute, Seeley Medical
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