HME News

JUN 2018

HME News is the monthly business newspaper for home medical equipment providers. This controlled circulation publication reaches 17,100 home medical equipment services providers, including traditional HME dealers & suppliers, hospital- and pharmacy-o

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Smart Talk www.corkmedical.com 866-551-2580 N I SUS ® N EG AT I VE P R E S S U R E WOUND THERAPY SYSTEM BETTER POWER. BETTER PORTABILITY. BETTER P R EC I S I O N. BETTER OUTCOMES. " The Nisus Pump reduced our NPWT service calls by 80%, allowing for BETTER PATIENT OUTCOMES." — M e d i c a l S u p p l y D i s t r i b u t o r hme news / june 2018 / www.hmenews.com 9 m& a pa T ien T C olle CT ions Don't bet against the house By Jennife R l eon Q. Why should i implement a card on file payment method for my business? a . Did you know that 60% of the amount owed by patients is b e forthright, professional By Jonathan s ado C k Q. How do i deal with rumors of a sale, and what and when should i tell employees? a . The era of competitive bid- ding has caused 40% of HME businesses to close or merge over the past decade. Some- times a sale or merger is the only option for a business owner to scale for survival and realize a return on a lifetime of work. W h i l e j u s t d e n y i n g t h e rumors may come to mind, an owner will find many benefits to being forthright, professional and candid in directly answer- ing an employee's inquiry. One sincere answer is: "We are always looking at our strategic options to man- age and insure the health and well-being of our company, just as we look out for and manage the services we provide to our patients. With the rigors of reimbursement and regulatory pressures, we as business own- ers, have a responsibility to all employees to keep ahead of the curve. We must always keep an open mind and explore options to grow the business. If and when we do decide to actually make a strategic move, I prom- ise to keep you informed. Until that time, please don't let idle rumors impact the success we are having together." While there may be some instances of the old "merge and purge," for the most part, buy- ers and owners recognize that the strength of the business, in many ways, lies in the strength of its employees. A buyer or partner will cer- tainly evaluate the roles and performance of all employ- ees and there are no guaran- tees. In many instances, those employees who serve critical sales and operational roles are often retained by the acquiring business or integrated into the merged company. hme Jonathan Sadock is managing part- ner at Paragon Ventures. Reach him at jsadock@paragonventures.com. never collected, and that 30% of patients have a past due balance of 60 or more days? Even if you are collecting ini- tial copays up front, HME pro- viders are quickly realizing the value of having a card on file for future payments is more of a necessity than it has ever been. What's astonishing is the rate in which automated payments is growing—111% year over year—and that number will cer- tainly continue to rise. Failure to create an automat- ed payment policy could mean losing out on much-needed col- lection revenue. Think abou T your curren T produc T mix If you are providing recurring rental equipment without a card on file, the probability of you actually collecting after-the-fact is like going to Vegas and betting against the house. Those odds are clearly not in your favor. n ex T , T hink abou T your pa T ien T demographics Statistics are showing the age of a patient entering our space is much younger than what it used to be, and this new generation of patients will come to expect the convenience of automated payments. Communicating the expecta- tion up front and having a credit card on file is the best way to ensure you get paid 100% of the time, and helps to guaran- tee that you get paid the right amount at the right time. With automation provided through technology and a strong policy in place, HME providers can collect faster, increase cash flow, improve their efficiency and allow time to concentrate on their higher payoff activi- ties. hme Jennifer Leon is vice president, patient collections, at Brightree. Reach her at jleon@brightree.com.

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