A video interview with Brightree CEO Dave Cormack just posted by HME News TV provides some valuable insight to providers considering critical steps in 2012.
Modernize to battle the effects of reduced reimbursement
Facing reduced reimbursements, including the widespread market-changing effects of Competitive Bidding Round 2, providers must use modern technology to counter the impact. While Competitive Bidding will bring market-wide reimbursement reductions of 25%, Dave points out that providers moving from outdated legacy software can get back at least 15-20% through the efficiencies enabled by a modern business platform. And that’s only the beginning: Providers typically increase revenue through better decision-making supported by Brightree’s reporting capabilities, and now they can grow resupply revenue from chronic care patients with the new Brightree Interactive Voice solution.
Manage by the numbers - product profitability and more
To thrive in the future, you need to know your business, Dave cautions. Especially in the era of Competitive Bidding – you can’t properly bid, accept a contract, or operate without knowing your product profitability, patient base, daily financial performance metrics, and more. Bringing his years of experience in Business Intelligence software to the HME market, Dave knows that you need to be able to get the data you need out of your system for regular analysis and continuous improvement. There’s more valuable info on this subject in a recent recorded webinar on Competitive Bidding featuring Miriam Lieber – watch it now.
Get ready for consolidation
While there will be a healthy market for independent providers, Dave foresees provider consolidation on the horizon. 7500 independent providers today will be down to perhaps 4000 within five years. The best run companies will have a place in the Competitive Bidding era, but they will have to operate at peak efficiency. Much of this will shake out beginning in 2012, as Competitive Bidding Round 2 awardees will capture market share in 91 more metro areas, leaving non-awardees to search for new business models. (Again, see the Miriam Lieber webinar for more info). Over a third of all independent providers have moved to a modern business platform – Brightree – in recent years, and these companies are best positioned for successful bids and thriving operations in 2012 and beyond.
To learn more and see Dave’s full interview, go to http://bit.ly/cormackvideo.