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.