Close

New Business Opportunity: A Snapshot of Our 2016 HME Business Playbook

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. New Business Opportunity is a significant topic we discuss in our 2016 HME Business Playbook.

A rule of thumb is to target 5 percent of revenues annually from new business opportunity.

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 direct 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 trust of co-workers and customers, he or she should also have knowledge of visual merchandising, product adjacencies, inventory control and sales reporting.

New products and categories in the reimbursable product space are another significant opportunity.

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 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.

Don’t stop here -- keep reading on ways you can build new customers!

Download your free copy of the 2016 HME Business Playbook here.

In the Playbook, you will find full chapters on:

  • Latest HME market trends
  • Info on new business opportunities
  • Tips to strengthen your business operations
  • Strategies to successfully navigate CMS reimbursement cuts

 

Tags: