How Wound Care Can Help Grow Your DMEPOS Business
on June 08, 2023
June is a special month for the wound care community. Not only is the week of June 12– June 16, 2023, designated as Certified Wound Care Specialists Week, but the American Board of Wound Management (ABWM) Foundation designated the entire month of June as Wound Healing Awareness Month. This month is meant to bring awareness to the work of wound care specialists on wound healing and provide useful educational resources.
VGM Wound Care is a value-add community for VGM members that helps providers get the resources they need to build profitable programs. Led by industry-expert and Certified Wound Ostomy Nurse (CWON) Heather Trumm, this comprehensive program helps members effectively offer wound care products and services to fulfill patients’ needs, all while developing another revenue stream to increase business.
Read “Growing Your Business with Wound Care,” from Heather Trumm below, where she dives into the ins and outs of elevating your business with wound care.
If you know me, you’ve heard me say it before—wound care is important for all DMEPOS providers because every patient has skin, and skin health affects each of us. The skin is our largest organ. Not only does it protect us against the ever-changing environment, but it also provides immunity, thermoregulation, sensation, metabolism, and communication.
If you can’t tell, I’m trying to make the case that if you are not in wound care, maybe you should consider the category. It’s human nature to shy away from wounds, and you may not know what to ask or how to get started (VGM Wound Care can help with that). Your patients have health issues which puts them at an increased risk for skin breakdown. Respiratory issues, cardiovascular problems, diabetics, and being para or quadriplegics are just a few of the situations that increase the risk for skin breakdown and wounds. The hard part is done—you are already taking care of the patient…why not take care of the entire patient?
Start small with wound care by choosing one category and building upon it. Wound care is typically broken down into five categories when we are looking at the HME/DME provider.
Five Categories of Wound Care
- Negative Pressure Wound Therapy (NPWT)
- Support Surfaces
- Nutritional Products
- Compression Therapy
- Wound Care Dressings
Unsure of which category would be best for your business? Start by asking questions. Talk to your patients and ask: Who is currently providing you with wound care dressings, lotion, compression, diabetic supplies, etc.?
Next, probe your current referral sources. Places to start may include but are not limited to:
- Home health agencies
- Discharge planners
- Case managers
- Wound care clinics
- Vascular surgeons
- Rehab centers
- Long-term care facilities
- Ambulatory/outpatient surgery centers
- Orthopedic surgeons
Good questions to ask those referral sources are: Who are you currently using for dressings, NPWT, nutritional supplementation, etc.? What do you like about the products and services they provide? What don’t you like?
Talking with your patients and their referral sources, along with market analysis and research, will provide you with the necessary information you need to make a sound decision about expanding into wound care. Look to see where the gaps are and ask yourself if you’re willing and able to fill them. If you answer yes to these questions, wound care would be a great avenue to pursue. For the best chance at success, assign a team member to lead this department or category. Generally, this person would have a sales and marketing background in the key area you are looking to expand.
Payer Mix and Profitability
After identifying the growth opportunity, determine your payer mix next. Who are you going to bill? Medicare? Private insurance? Contract with a long-term care facility? Perhaps it’s a combination. This is a big decision to make. Make sure to check out the VGM Wound Care Guide for a full breakdown when considering your payer mix.
Wound care can be profitable in every category. To give you an example:
With NPWT, the pump is the main revenue source (it’s a rental product). One pump generally costs around $2,000. The Medicare fee schedule—depending on state, rural, non-rural, and the point of service—can vary from $800–1400 per month per patient. The average length of stay for one patient on negative pressure is 45 days (two-month billing cycle). You could have one pump paid for after one patient. The disposables that are billed with the pump (A6550 – kits and A7000 – canisters) are generally reimbursed at what they cost, though.
If you’re interested in finding a more specific return on investment of NPWT, VGM has a proprietary profitability calculator on the wound care portal available for members to download. There, you’ll also find profitability calculators for surgical dressings and support surfaces.
Don’t Panic. Reach Out for Help
Let’s pause. That is a lot of information. And yes, it will take some work on your part. Don’t panic—VGM Wound Care can help every step of the way. The members-only portal on vgm.com is full of resources to help you, including forms, policies, procedures, profitability calculators, and full guides on how to be successful in wound care.
Our in-house experts will also personally walk you through what you need to know. I’ll get you started with a Wound Care 101 presentation that further explains the wound care market. On the regulatory and reimbursement side, Ronda Buhrmester and Craig Douglas will help you navigate the payer mixes and reimbursement.
Being part of VGM Wound Care also provides you with a group of colleagues and mentors to help you throughout the process. This includes vendor partners who will help keep you competitive in the market you choose to enter. VGM Wound Care has the tools, solutions, and resources for you to thrive in the wound care market.
Start by talking with your patients. You’ll soon find out that you could be in the wound care market, providing supplies and equipment to your patients and taking care of all their healthcare needs at home.
This article was originally featured in the VGM Playbook: Growing Your Business in Today's Environment. Download your copy of the playbook.
- business development
- wound care