HME News

December 2011

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■ Provider Anne Turner says its been a good first year for A Turning Leaf. She recently expanded into new markets. See story this page. Providers move on after Humana, Apria agreement ..... 1 Lake Norman is "launching pad" for new owner . . . . . . . 19 Online directory offers providers new venue .......... 20 Lincare posts income loss ......................... 21 Providers WWW.HMENEWS.COM / DECEMBER 2011 / HME NEWS 19 BRIEFS Premier settles complaint Jeffersonville, Ind. – Premier Home Care agreed to pay $578,820 to the United States and $21,180 to Indiana to settle claims that the provider allegedly used unlicensed technicians to set up CPAP machines, ac- cording to the News and Tribune. In 2008, a former employee filed two whistleblower complaints against Premier Home Care. The complaints alleged Premier violated the False Claims Act by falsely certifying that it was in compliance with Indiana state licensure laws. In a statement, Wayne Kne- wasser, vice president of public relations for Premier, denied any wrongdoing. Care Medical on California roll VISALIA, Calif. – Care Medical recently ac- quired Valley Homecare in Lompoc, ac- cording to a local newspaper article. Care Medical, which has been adding about one location per year, now has 13 locations in California and employs 130 people. Care Medical was founded in 1996 and offers home medical equipment and mobility. A representative for the company said in the article that competitive bidding is driving industry consolidation. Terms of the deal were not disclosed. Max-Wellness launches new retail location COLUMBUS, Ohio – Max-Wellness opened a location here in October—its sixth overall. The health and wellness retail store was launched in 2010 by Michael Feuer, co- founder and CEO of OfficeMax. Max-Well- A Turning Leaf turns to medical supply markets 'We didn't push for this, but so many patients are requesting it' BY THERESA FLAHERTY, Managing Editor LEBANON, Ore. – When provider Anne Turner added diabetes supplies to her product mix this summer she found a ready pool of customers: her CPAP patients. "With awareness and the growth of obesity, diabetes and (sleep apnea), we feel we can touch more of the patient pop- ulation by incorporating the two," said Turner, president of A Turning Leaf. A Turning Leaf celebrated its one-year-anniversary in September. The company has seven employees and Turner's husband has been able to join as a full-time employee. The provider hired a diabe- tes coordinator to handle bill- ing and educate patients. Some print and radio advertising, as well as word of mouth, has got- ten the news out, said Turner. "When I see a CPAP patient, I let them know we do diabe- tes supplies too," said Turner. "Right now, we are getting two or three new patients a day." LEAF SEE PAGE 21 For retail success, put your best face forward BY THERESA FLAHERTY, Managing Editor ness offers nearly 7,000 products, ranging from natural vitamins and supplements to durable medical equipment. Walgreens to shutter some business WAUWATOSA, Wis. – Walgreens Home Care plans to halt its respiratory and durable medical equipment operations here, but keep its home infusion business open, ac- cording to an Oct. 6 article on www.biz- journals.com. The company expects to lay off 69 employees over a two-week span in December. Short takes Zanesville, Ohio-based Shrivers Oxygen and Home Medical was accredited by HQAA it was announced in October…Ev- ans, Ga.-based Bonro Medical in Septem- ber received a Torch Award for Marketplace Ethics from the Better Business Bureau of Central Georgia. Bonro provides HME and manufactures the Vacurect. New owner sees opportunities, not challenges 'I bought this as a launching pad' BY ELIZABETH DEPREY, Associate Editor TROUTMAN, N.C. – Expect to see big things from Lake Norman Medical in the future, includ- ing acquisitions and even branded products, said new owner Michael Boyd. Boyd bought the company early this fall, when Allen Brawley left in frustration over government policies. "Between the cuts on reim- bursement and paperwork requirements, I'd just had enough of the red tape," said Brawley. Since the purchase, Boyd has learned on the job, striv- ing to understand the com- pany's processes and billing system so he can streamline the ordering process and get products out to patients faster. "I wanted to step out of corporate America and get into a smaller business, one that I owned," Boyd said. His background is in disposable medical supply manufactur- ing. Lake Norman carries a range of products, including bath safety, beds, commodes, wheelchairs and scooters. Boyd plans to make Lake Norman the "go-to" place for mobility in his market, he said, but his plans don't end there. "The first step is to get our arms around the business and from there, look at other revenue streams," he said. Among those revenue streams: acquisitions of com- panies that complement his, allowing him to add lines like respiratory to Lake Norman's offerings. Later plans could include launching Lake Nor- man's own brand of products. "We're looking to grow," he said. "I didn't buy this just to buy one business. I bought this as a launching pad." HME ATLANTA – When it comes to retail success, provid- ers need to sell themselves as much as they sell their products, said panelists at a Medtrade session, "HME Retail Panel: Branding, Cre- ativity and Service Work! Don't Miss Out on Cash and Retail Opportunities." "Become a marketing company that just happens to sell HME," said panelist Jim Greatorex, president of Portland, Maine-based Black Bear Medical. The most obvious way to market yourself: advertising. Track how those ad dollars are working. Use coupons in print advertising not only to bring customers into the store, but also to track how many people saw your ad. Another way to track results: unique phone numbers for each advertising medium (print, TV, radio) that tell you which ads are generating calls. It doesn't hurt to consider your referral sources either, says panelist Tom Mul- laney, president of Cincin- nati, Ohio-based Mullaney Medical. One of his biggest: RETAIL SEE PAGE 21 RED RIBBON DAY Great Lakes Home Healthcare Services (GLHHS) celebrated the opening of its new Jamestown location Sept. 14. The provider didn't have to go far: The new showroom is just down the street from its previous home. "The new Jamestown location is much more spacious and accessible for our customers," said Tonya Clark, branch manager, in a release. The 25-year-old GLHHS offers home medical and respiratory equipment, supplies and O&P. Bright Medical channel surfs BY THERESA FLAHERTY, Managing Editor PHILADELPHIA – When it comes to driving sales, online provid- er Andrei Lemiasheuski looks beyond the usual resources like Google and Bing to drive traffic to his website. This summer, the president of Bright Medical tried out comparison shopping search engines like pricegrabber.com and shopzilla.com. "We use all channels avail- able," said Lemiasheuski. The way these comparison sites work: The seller basically provides a feed of what's avail- able on their ecommerce site, including pictures, links, parts numbers and, of course, pric- ing. The user shops by category, say a certain brand and style of wheelchair, and then compares all products listed in that cat- egory. When they find one they like they click through and it takes them to the seller's own ecommerce site. The seller pays per click on each product listed—Lemi- asheuski says he pays between 60 cents and 70 cents per click—whether the click results in a sale or not. "If the customer just wants to select the cheapest product, it will give them that," said Lemiasheuski. "We are in the lower level of pricing for dura- ble medical equipment, so it's increased sales for us." Comparison shopping search engines don't work for everyone, cautions industry consultant BRIGHT MEDICAL SEE PAGE 21

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