Cost Climate: What's the Impact on Complex Rehab?

Published in Complex Rehab on October 06, 2023

Cost Climate: What's the Impact on Complex Rehab? This post was originally featured in HME News.

U.S. Rehab and NCART have teamed up on a new survey to assess the impact of today’s radically changed business climate on the financial health of complex rehab technology companies. 

The survey, conducted by Christy Ryken and her Strategic Marketing Services team at the University of Northern Iowa, seeks to gauge the impact of inflation and supply chain disruptions, as well as increased wages and shipping costs, says Wayne Grau executive director of NCART. 

“What we’re trying to demonstrate is the cost structure of this business model,” he said. “It’s a lot of services, at a high level, and we want to take care of customers, but a lot has changed, and we may be forced to make some decisions that will have an impact on that, such as limit service areas.” 

The survey, open through the end of September, collects data on the cost of everything from labor to repairs to compliance to purchasing. 

Data from the survey, when combined with data from other industry tools like U.S. Rehab’s Functional Mobility Assessment, which measures outcomes, will better position CRT companies from a regulatory and reimbursement perspective, says Greg Packer, president of U.S. Rehab, a division of VGM & Associates. 

“We believe that with some of the actual outcomes data we have, we can show CRT as a cost saver, not a cost driver – that is, if it’s utilized properly and reimbursed properly,” he said. “It can save in the long run.” 

The industry was overdue to conduct such a survey, Grau and Packer both say, with previous studies done back in 2017 by the Saunders College of Business at the Rochester Institute of Technology and in 2008 by the Simon Business School at the University of Rochester. 

“Any major analytical data that we have is old,” Packer said, “so what we’re trying to do is get an accurate picture in time of how these companies are faring with these pressures and staying in business.” 


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