We have all heard it a thousand times – the DME business model is changing. We know that you know by now that in order to stay afloat, you have to change the way you do business.
We have seen a number of forward-thinking providers who are not just surviving but thriving in the new DME market. Here are three things that I’m seeing them do to make the market work for them:
Margins: DME companies that are thriving are hyper-focused on managing their margins. They make sure that from order to reimbursement, they are maximizing their margins at every step.
Control: Inventory control has never been as important as it is today. The growth-based companies are investing in inventory tracking systems like ours, which allow them to monitor every item they carry. With careful controls in place, they can eliminate costly overhead while delivering on time and within price margins.
Software: Software has come a long way in the last five years, and yet many providers are under-utilizing the software available to them. Now is the time to make sure that you really understand and use what your software providers are offering your business. At a minimum, you should be able to access myriad reports to help you run your business.
The DME market is changing, but remember that DME is a “must-have” industry, so it will not go away. The providers who thrive in the new conditions will be able to maximize the three elements above and more.
Wondering how you can thrive in 2018? Give us a call!
by Michelle Tohill
Oct. 1 is right around the corner, and we still don’t know exactly how ICD-10 is going to impact healthcare businesses. In fact, there is still some slight question about whether the CDC is going to pull back at the last minute due to readiness concerns.
Here are some things you should know for your business in preparation for Oct. 1:
>> You must use ICD-9 codes up through Sept. 30; beginning Oct. 1, you must use ICD-10 codes.
>> If you don’t use the correct ICD-10 codes, you will not get reimbursed.
>> It may take time for your partners and providers to get on board, so even if you are ICD-10 ready, your cashflow may still be impacted due to their inability to provide the correct billing information.
While it’s hard to say EXACTLY what will happen on Oct. 1, we do know that there will likely be a great deal of confusion and an overall slow-down in the medical billing and reimbursement industry for at least the first 90 days following ICD-10 implementation.
If you haven’t already, make sure your billers or billing service is fully ICD-10 ready, and prepare a cushion in your bank account to allow for significant cashflow slow-downs.
Michelle Tohill is Director of Revenue Cycle Management of Bonafide Management Systems and oversees all billing programs and processes. Her specialty is conducting AR audits to expose inefficient billing practices that fail to fully reimburse physicians for their work. She conducts AR audits and provides Bonafide customers with training and consulting on how to improve every aspect of billing and practice management to maximize revenue.
This blog post is also available as an infographic here.
The EMV transition is scheduled to go into effect Oct. 1, 2015. This switch will require all DME retailers to get a new POS machine and access upgraded EMV processing technology.
What is EMV?
EMV is a global payment system that entails putting a microprocessor chip into debit and credit cards, making them less vulnerable to fraud for in-person transactions. Because EMV uses better data security, this standard is being adopted in the United States with a deadline of Oct. 1.
EMV cards have been proven to dramatically reduce credit card fraud. The United States has lagged behind other countries that have already improved credit card security using EMV. Although the U.S. accounts for just 25% of the world’s credit card transactions, more than 50% of all fraudulent transactions happen here. EMV technology makes it virtually impossible for thieves to duplicate cards.
How Will EMV Work?
Unlike a magnetic stripe card, EMV cards have a chip in them that can send unique data with each transaction. The EMV chip transmits a variable algorithm with each transaction, making the data more secure than static data, which is what magnetic stripes offer. Only EMV-enabled terminals can read and decode EMV cards.
When Will EMV Go Into Effect?
Your customers are receiving new EMV-compliant credit cards right now, and all major credit card companies will have distributed EMV cards by Oct. 1. The U.S. is set to transition more than 1.2 billion payment cards this year.
Meanwhile, all retailers need to upgrade to an EMV-compliant terminal and payment processing software system in place by Oct. 1. The U.S. is estimated to transition more than 8 million point-of-sale (POS) terminals to meet EMV requirements.
Bonafide has partnered with AxiaMed to provide its DME clients with EMV-compliant customer payment transactions that are fast, efficient and secure. For more information, please contact Kristina Akerberg at (805) 906-1698.