Issue link: https://read.dmtmag.com/i/52926
14 Smart Talk MERGERS & ACQUISITIONS Communicate clearly to ease fears BY STEPHANIE MORGAN GREENE Q. How do I smoothly transition my new employees after I purchase a DME company? A. Many buyers fall into the trap of focusing solely on paperwork when purchasing a DME company. They negotiate the letter of intent. They finalize the purchase agreement. They review the strength of the sell- er's claims, billing policies and pro- cedures, focusing on due diligence. But, for a truly successful purchase, the buyer must consider the other half of the equation: people. The employees made the seller's company desirable to you and are a key factor in determining the com- pany's future profitability. When news of a sale is public, employ- ees naturally feel uneasy about their future. They'll likely wonder if their work style and personality will blend with yours, or if their position will even be needed under new management. Timing of the announcement is paramount. If the seller announces the sale before the buyer is able to discuss their future with the company, fear will grow. WWW.HMENEWS.COM / FEBRUARY 2012 / HME NEWS A coordinated announcement is the foundation to a successful sale. To ensure a smooth and posi- tive announcement, the buyer and seller should meet beforehand to discuss personnel issues, and plan for potential questions and even hostility from the employees. It is imperative for the buyer to speak with the employees immedi- ately following the announcement and be prepared to provide straight- forward answers about the transi- WEBCAST Maximize sales per customer BY RYAN RUSKIN Staying Ahead of the Curve: Medicare & DME in 2012 2012 is shaping up to be a year filled with both financial and legislative changes that significantly impact the way suppliers do business. This webcast will help you maintain compliance with the latest Medicare regulations and keep your billers ahead of the reimbursement curve. Topics include: • New claims formats and reports under HIPAA version 5010 • What to do once you receive your revalidation letter • How to enroll and verify your information in PECOS • What ever happened to physician NPIs and PECOS rejections? • Which DME will be most audit prone this year • The latest on competitive bidding Round 2 ...And much more! Attend this webcast. Get informed. Grow your business. Seats are limited. Register now! HMENews.com/webcasts Live Event: Thurs, Feb. 23 11 am EST JOIN US $ SIGN UP NOW 99 Presenters: Andrea Stark, reimbursement specialist, MiraVista Jeff Baird, healthcare attorney, Brown & Fortunato Moderator: Liz Beaulieu, Editor, HME News Q. In a retail environment, what specific areas should I look for to maximize intangible returns? A. In most retail venues revenue models are built off of traffic. Tra- ditionally, DME retail has been focused on physician- or prescrip- tion-driven business. Customer relationships were often sacrificed by lack of sales training, product driven sales associates and informa- tion platforms required to maintain a profit-producing retail model. Even today, most DME retail ven- ues focus first on insurance cover- age and physician requests versus customer service and patient care. In turn, the intangible value of pro- viding many mediums of care, i.e. product sales, for each customer is often lost. Conduct an overall analysis of your customers and start speaking with them about their problems and what types of products they may be interested in. The initial key to tapping into your intangible asset returns is customer informa- tion. Whether it be database anal- ysis, purchasing trends, diagnosis services, or referral source special- ties, seek out information, assess how that information integrates with your current business model, and determine how you can lever- age that information into new sales. A customer loyalty program could improve your company's abil- ity to maximize current sales per customer. Such a program builds relationships with retail customers, and maintains that channel of com- munication necessary to constantly tweak your business model. You can start with something basic like customer loyalty cards that would entitle your retail cus- tomers to a certain percentage off at your store. Every time you touch your customers you are leveraging your opportunities to maximize intangible returns. HME Ryan Ruskin is an independent con- sultant and attorney. Reach him at ryanm17r@yahoo.com or 772-528- 4818. tion. While some subjects will be difficult (for instance, questions about layoffs), addressing issues in an empathetic and truthful manner is the only way to alleviate employ- ee fears about a temporarily uncer- tain future. HME Stephanie Morgan Greene is general counsel for Harrington Management Group, also known as The Audit Team. Reach her at sgreene@theauditteam. com or 888-833-3478. BUSINESS ASSETS