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Ready to Grow? Identify New Business Opportunities

Posted on in Growth Strategies

HME businesses must be adding elements of “new revenue” at all times. New growth is not accidental but an intentional effort that is always at the forefront of strategy, planning and day-to-day operations. A rule of thumb is to target five percent of revenues annually from new business opportunity.

Ready to grow? Shift your business to the non-reimbursable space

Make “new” and “growth” intentional by shifting your business to the non-reimbursable space. Lift chairs, active and sports compression, non-pharmaceutical pain relief products, healthy and comfortable footwear, mobility and home safety are all non-reimbursable items that add value to your showroom and drive new revenue for your business.

With cash becoming a prominent payer for health care, your business must focus on marketing directly to the consumer. HME providers are hiring or assigning dedicated retail marketing managers more than ever before.

This should be one employee who manages all things related to retail products and operations within the store. Not only should this person have the people skills to earn the trust of co-workers and customers, he or she should also have knowledge of visual merchandising, product adjacencies, inventory control and sales reporting.

New reimbursable products and categories

New products and categories in the reimbursable product space are other significant opportunities. Grow cash sales from consumers or families by offering a better, more effective or more attractive reimbursed item. Think of better wheelchairs, features that break down barriers, items to be used in second residences, portability, convenience, accessories or items that relieve pain. Inspiring creative ideas that help caregivers and patients solve problems is by nature the definition of caretailing and should be added to your yearly strategy to grow your business. To have the most success in this strategy, as an industry we must negotiate upgrade clauses into our payer contracts. The payers, who in most cases pay at the hamburger level for product quality, must allow their members to upgrade to filet mignon.

Product life cycles - New innovation is necessary

New growth is necessary at the juncture where the modern health care system and consumer demands meet with HME. Many core HME products are in a mature portion of their life cycle or beyond, at a point where profit margins will fall drastically. How can you introduce new, innovative products to your customers? They have always been a key part of the successful HME story and will continue to be a major revenue driver for the industry. Non-invasive ventilation and chest compression technology are two examples where we’ve seen innovative products and growth in the recent years.

Retail is an excellent new business opportunity if you haven't embarked on it yet. For more information on how retail can help maximize your earning potential, visit http://www.vgmretailservices.com.

 

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