The reimbursement cuts that went into effect in July 2016 are brutal beyond belief! They are literally life-threatening to most providers.
Providers who have been managing their business based on the era of the Golden Commode or in the days of a $200 per month Oxygen patient are in big trouble. And even a year ago, DME providers were able to get somewhat healthy margins.
When you have a business operating at 50-60 percent margins, business is pretty forgiving. Good margins keep bad operators in business.
But the tight margins in DME today are a bad-business company killer. You can go down, or you can rework your business to accommodate the tighter management needed to survive.
It is time for all DME businesses to raise their operational insight and aggressively track their inventory costs from the time of purchase all the way through to payment posting.
At Bonafide, we already have all the intelligence built into our software so that you can track every item, rented or sold. This data is seamlessly exported to your General Ledger of choice where you can accurately know your margins on individual categories of business.
With intelligent business software, you can make better management decisions regarding resources and expenditures. By watching your margins, you can push your profitability and be one of the survivors in the DME industry.
We have the ONLY DME software that can be fully and seamlessly integrated into all of your management decisions. Schedule a demo today to find out more.
On July 1, 2016, the changes that CMS implemented to the durable medical equipment and prosthetics, orthotics and supplies (DMEPOS) went into full (100%) effect.
The impact of these fee changes on DME businesses cannot be overstated. While DME businesses are putting in just as much work to serve just as many patients, they are seeing their reimbursement rates drop by up to 50% overnight.
As a business owner, this is the time to look very closely at your business expenses to make sure you have minimized them. Without business process cost reductions, you will very likely end 2016 with a loss, even if it appears that your revenue is increasing.
Now is the time to pay careful attention not just to your gross revenues, but your net revenues based on reimbursement. That is where you will see the significance of CMS’s recent changes.
In an effort to support the DME industry, Bonafide is offering complimentary A/R reviews and advice to support each and every DME operator in maximizing their reimbursement rates this year and beyond to avoid the crippling effects of these fee changes.
Contact the team at Bonafide today to discuss our proven solution in securing years of future business success for your business.
by Eddy Hsu
Patients are increasingly expecting DME providers to offer health technology solutions. Here are three trends we are seeing in health technology that you may want to consider adding to your DME product inventory:
1. Advanced HME providers are combining their patients’ personal technology with their medical equipment needs. Patients with diabetes and sleep issues, for instance, are now tracking their therapy compliance and conditions in order to make future improvements. This trend will continue in the future.
2. The use of wearable health technology is on the rise. Soreon Research predicts that the wearable health device market will grow at a compound annual growth rate of 65%. IDC Health Insights believes 70% of healthcare companies will adopt mobile applications, wearable devices, and remote patient trackers by 2018.
3. Fitness, sleep, and healthcare trackers are revolutionizing the way people live. These tools allow the average person to set reachable goals and find new ways for growth and improvement. These devices continue to evolve and the groups of data being collected are advancing like never before. The information and stats gathered can then be synced with the user’s personal computer or devices for future reference. There are also options to share this information across social media accounts or online forums.
Patients now expect this level of technology when tracking their health. By analyzing their therapy’s progress, they are able to visually see if they are getting the results they desire. If their health is not improving, they can figure out why much more efficiently. It is imperative that HME providers find ways to meet the technological needs of their patients.
To begin incorporating user-friendly patient technology, providers must consult with referral partners and patients to determine which health technology products are being utilized in your customers’ personal health plans. The blending of patient care and trackable data is here to stay, and by integrating necessary items into your DME inventory is essential.
by Eddy Hsu
Mobile devices are used everywhere, but did you know that they can increase your delivery efficiency? Your drivers probably are already using a smartphone to make calls to clients and headquarters, so you don’t need to invest in new technology. Instead, just make sure they use their smartphones to support your business operations.
Bonafide offers mobile applications that allow your drivers to transform their vehicle into a mobile warehouse. They can stay connected to management systems at all times and vastly improve their efficiency.
Here are some ways that equipping your delivery staff with mobile applications will support your business goals:
Accurate inventory count
In most cases, you assign rental equipment in the warehouse to a specific client, and then if your driver arrives and realizes the equipment is the wrong size or is inoperable, he must take another trip or ‘scratch through’ the delivery ticket, making a mess of your paperwork.
A smartphone can transform your trucks into mobile warehouses, enabling drivers to deliver the right product the first time, and accurately and precisely manage inventory in real time. Your count is always accurate and the billing process can begin as soon as the product is delivered.
Drivers are famous for forgetting some document or another and failing to obtain a signature. With Bonafide, your drivers can utilize their smartphones as a documentation device. There is no chance for misplacing documents.
Once he has the patient set up and trained on all the equipment, the driver can review each item received and have the client acknowledge receipt on his mobile device. At that point the entire order can be billed and a claim filed from the headquarters. All of this documentation is HIPPA compliant, encrypted communication.
Add deliveries en-route
With drivers, time is money. You don’t want them making unnecessary return trips to the warehouse throughout the day if you can avoid it. Since the truck is a ‘mobile warehouse’ with a high performance inventory control system on board, your driver can load extra items on the truck in anticipation of additional orders being added to his delivery trip during the day.
You won’t have to wonder where your equipment is or worry about theft. Instead, with our bar coding inventory system, you will always know what is on your trucks, and can add delivery stops to any driver’s route at any time.
We can help you transform your trucks into mobile warehouses using our mobile technology and exclusive inventory control system. Give us a call if you would like to find out more!