Growing Non-Medicare Oxygen Revenue

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Growing Non-Medicare Oxygen Revenue Mary
Schreck US Marketing Manager Philips Respironics
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Objectives

• Review the Changing Face of Oxygen
• Discuss sources of Non-Medicare Oxygen Revenue
• Share Marketing Tools and Techniques for Retail
  Revenue Growth

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The Changing Face of the Home Oxygen Patient

• Diagnosed Earlier and Younger
• More Active
• 50 Moderately Highly Ambulatory
• More Educated
• More Likely to Travel

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Percentage of Non-Medicare Business by Oxygen
Providers

26-50
11-25
51-75
0-10
76-100
Source VGM Survey of Home Oxygen Providers
January 2009
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Sources of Non-Medicare Revenue

• Private Pay Insurance
• VA Contracts
• Hospice
• Skilled Nursing Facilities
• Prisons
• Retail Sales

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Private Pay Insurance

• Reimbursement Varies by Payer and Area
• Know Your Costs and Either Focus Efforts or Walk
  Away
• Look at Factors Beyond Reimbursement
• DSO
• Billing Process
• Other Requirements (Visits, etc.)

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Hospice

• Hospices Purchase Equipment Directly from
  Suppliers
• Oxygen is Most-requested HME Item
• Tips for Success
• Use Formularies to Limit Services and Equipment
• Use Central Point of Contact
• Purchasing vs. Nursing
• Outreach To Hospices In Your Area
• Find Out Their Needs and Satisfaction with
  Existing Supplier
• Things to Consider
• Demanding Environment
• Reimbursement Rates
• Payment Turnaround Times

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VA Hospitals and Facilities

• Opportunity Varies by Region
• Purchases Oxygen Via RFP Process

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Skilled Nursing Facilities / Corrections
Facilities

• Skilled Nursing Facilities
• Patients Receiving Skilled Care (Home Provides
  All Services)
• Patients Not Covered Under Skilled Portion of the
  Facility (Could Be Private Pay Insurance)
• Corrections Facilities
• Contact State Board of Corrections to Find Point
  of Contact

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Treat All Stages of Disease Process

• Example Service All COPD Patient Needs
• Nebulizers
• Oxygen
• Beds
• Wheelchairs
• Patient Aids
• Enteral Feeding
• NIV
• Educate Patients So That They Get Services From
  You, Not Elsewhere

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Retail Opportunities in Oxygen
Portable Oxygen Concentrators Pulse Oximeters
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POC Sales and Rentals-Growing Opportunity

• Most providers (85) attempt to differentiate
  their business from competitors by offering
  portable oxygen concentrators
• Two-thirds (67) offer a patient travel program
• In todays market, every edge on the competition
  is certainly worth considering.

Homecare Provider Survey 10/07
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POC Air Travel Additional Access in May

• Long-Awaited Department of Transportation Ruling
  Signals Victory for Oxygen Patients
• Domestic Airlines
• Any Airlines with Flights that Start or End in
  the US Must Allow FAA-Approved POCs on Board
• FAA Approved POCs
• Airsep FreeStyle AirSep LifeStyle
• Inogen One Invacare XPO2
• Respironics EverGo SeQual Eclipse

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POC Sales Opportunity
Portable Oxygen Concentrator Cash Sale Numbers Are For Example Only Portable Oxygen Concentrator Cash Sale Numbers Are For Example Only
Homecare Provider Purchase Price 2,300
MSRP Price Paid by Patient 4,495
Payback Timeframe Immediate
Immediate Profit 2,195
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POC Rental Opportunity

• Rental Price Range 200 - 500 Per Week
• Quick Return On Investment

Profit Example Rental Unit for Traveling Oxygen Patient (For Example Only) Profit Example Rental Unit for Traveling Oxygen Patient (For Example Only)
Purchase Price 2,300
Weekly Rental Revenue 300
Payback Timeframe lt 2 Months
Yr 1 Profit After Payback Assume 20 Weeks Rental / Year Total (12 Weeks After Payback X 300 per Week) 3,600
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Create In-Store Centers of Knowledge

• Display Out of Box and Offer Choice
• Dont Overwhelm the Patient
• Educate First - Then Sell
• Look To Vendors For Patient Materials
• Point-of-Sale Displays
• Brochures
• Posters
• Quick-start Guides
• Demonstration Units
• User Videos/Testimonials

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Train and Reward Full-Time Employees

• Provide Training Along With Incentive/Commissions
• Retail Staff
• Drivers
• Customer Service Staff

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Promoting Your Retail Oxygen Offerings Using
Marketing to Let Users Know About Your Offerings
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Low Cost, Targeted Marketing

• Start with Your Existing Customers
• Can You Access From Your Existing Customer Base?
  
• Do You Regularly Collect Email Addresses?
• Do You Regularly Outreach To Them?
• Use Low-cost, Targeted Marketing Efforts
• Email
• Newsletters
• Direct Mail Pieces

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Example Low Cost Email Marketing Vendor
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Email Marketing Campaign Example

• Launch Travel POC Rental Program
• Send to Existing Customer Email List
• Use Low Cost Email Marketing Tools to Send Out
  Communication
• First Email Travel POC Program Now Available
  with Incentive Offer Save on First Rental
• Second Email Traveling with Oxygen In-Store
  Event

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Creating Direct Mail PiecesOnline Tool Example
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Patient-Focused Email Newsletter

• New Products
• Medical News
• Patient Education Tips
• FAQs

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Advertising Your Retail Oxygen Offerings

• Print Ads
• Local Newspapers
• Ask the Expert Column
• Television
• Local Cable and Broadcast Stations
• Radio
• Talk Radio/AM
• Public Radio

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Leveraging Public Relations

• Low-Cost/Investment is In Time Results Can Be
  High Impact
• Identify Your Targets and Build Relationships
• ?Healthcare Reporter ? Features
  Reporter
• ?Travel Reporter ? Business Reporter
• Suggest Stories Relevant to their Audience
• Skies Open Up for Oxygen Users
• More Patients Traveling with Medical Devices
• Send Updates and Relevant News

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Leveraging Community Events

• Host Your Own Event
• Partner With Related Businesses to Defer Costs
• Senior Living Facility
• Manufacturer
• Patient Groups
• Use Multiple Marketing Channels to Drive
  Attendance
• Promote in Patient Newsletter
• Create Leave-Behind Promo for Referral Source
  Offices
• Invite Reporters
• Issue Press Release
• Send to Events Editor for Local Papers
• Become Known in the Community Sponsor Community
  Events

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Think Outside of The Retail Location

• Pulmonary Rehab Facilities
• Physician Offices
• Partner with Local Travel Agents

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Dont Forget the Internet

• Strategy 1 Communicate Information
• Build Brand
• Communicate with Customers,
• Provide an Overview of Product Features
• Communicate Company Info and Services
• Update Content Regularly
• Strategy 2 Sell Over the Internet
• Topic for Another Presentation Lots to Consider

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Summary

• Changing Face of Oxygen Brings New Opportunities
• Explore Non-Medicare Oxygen Revenue Sources for
  Fit
• Utilize Marketing Tools and Techniques for Retail
  Revenue Growth