Julie A. Bowman, RRT, RCP is the founder and president of HME Solutions, LLC, which offers HME business consulting in the areas of Operations Strategy, Business Execution and Accreditation.
She is the author of "The Keys to Best Practice Operations for the HME Business Owner", a book of valuable ideas to operate a more efficient business in these ever changing times. She is the co-author of the "HME Business Builder", an industry newsletter.
The climate of regulatory change is upon us with the move toward HME competitive bidding fast approaching. This promise of sweeping change for the HME industry is intimidating and confusing for the average business owner to contemplate. The list of unknowns is long, and the fear of being driven out of business by large national chains is real. How then can we take a proactive, positive approach to this change that faces us?
While the "action item" list for HME competitive bidding is still a bit cloudy and many plans are in the formation stage, there are some simple things that we can do now that will help prepare us for the directions we will receive later this year. Here are a few suggestions to help you start thinking about your preparation:
- Begin now to prepare for HME Accreditation if you have not already. Despite the current confusion about timetables, CMS has made it clear that accreditation will be a mandatory requirement in order to bid.
- Carefully review every product and service you provide. Do you want to bid competitively on all them? If you have products and services that are marginal income producers for you, now is the time to eliminate them from your line of business.
- What is the status of your rental inventory? Are you renting equipment that is old, obsolete or costly to maintain? Now is the time to look at new technology and to examine cost-effective equipment and brands of products that will gain you a competitive edge when competitive bidding arrives.
- Examine the structure of your business. Is every employee vital to your success? If not, consolidate job functions now and eliminate unnecessary positions. Are all of your employees working to their full potential? If not, now is the time to make those difficult decisions regarding the future of a marginally performing employee.
- Review your delivery systems. Are there items that can be shipped to your patients that you are currently delivering to them? Personalized delivery may be nice, but is it cost-effective?
This list could be expanded greatly, but I am sure that you have the picture of some of the things that you can do now to help you prepare for HME competitive bidding. Streamlining your business now to reflect how you would like it to look when competitive bidding arrives puts you far ahead of the imposed plan and allows you to be in the driver's seat. Acting now demonstrates that you are taking control of change and not allowing it to overtake you.
Strategic Planning for Change
In addition to the list above, I would recommend that you begin to have regular strategic planning meetings with members of your board of directors, your advisory groups and other industry experts whose opinions you value. Now is the time to get advice from many people and to use the advice you receive to help you formulate your business plan for competitive bidding. Many businesses are built on the entrepreneurial ideas of one or two people who may be resistant to change. Inviting the opinions of others to help mold the future is a vital step in planning for what lies ahead.
You can be sure that the large national companies are already positioning themselves for successful competitive bidding. Spend time observing their business trends and the products and services on which they focus. Not all of their business models may be reasonable for a small business owner to accomplish, but careful observation of the competition will always give you insight into ways that you may improve or could compete with them.
Conclusion
Don't wait until regulation in the form of competitive bidding arrives at your doorstep. Now is the time to begin to plan and implement the necessary changes to your business. Yes, change is difficult, but if the change is guided by the business owner's strategic planning, it will be much less painful and there will be a more positive outcome.