2016 HME Handbook

How to Tap Into Orthopedic Market Opportunities

Some key considerations for providers looking to expand their revenues through orthopedics.

OrthopedicsAs providers work to expand their revenues, one long-standing product category provides a good mix of retail and funded revenue while also reaching a wide range of patient groups. That category? Orthopedics.

When it comes to funded items, orthopedic goods often meet the criteria for reimbursement, and are more often covered than not when prescribed as medically necessary. Also, when orthopedics are prescribed, there are many complementary items providers can sell on a retail basis along with the funded products to increase their profits. For instance, when a patient is prescribed a knee brace, the provider can suggest custom orthotic shoe inserts, heating pads, analgesics and knee wedges, and then sell those items on a cash basis.

When selling orthopedic goods on a retail basis, it’s important to keep in mind that the demographics of people that need these offerings are considerable. Thus, the argument to offer orthopedic products becomes even stronger. And, as that population ages and people that are older remain active longer, an increasing number of those people require some type of supports and braces to help maintain those active lifestyles, as well as to prevent and treat minor injuries.

Clearly, as an HME category, orthopedic products represent a revenue opportunity that providers can’t ignore, because, in addition to its revenue potential, offering orthopedic goods lets them leverage existing patient relationships and their ability to develop their teams’ in-depth product knowledge. Bearing that in mind, let’s examine some key considerations when it comes to offering orthopedics:

Understand the market. There are a wide variety of patient groups that are served by orthopedic goods: rehab patients, customers who are recovering from injuries, people suffering from sports injuries, athletic clients that need special support, post-surgery patients, maternity patients, and geriatric patients. Each of these patient groups need specific items. For instance athletic patients could need wrist, ankle, and knee braces, back supports, or, if they’ve suffered an injury, they could need ice packs, or slings.

Understand demographics changes. A key patient segment for orthopedic goods is the Baby Boom generation. There are 10,000 people turning 65 every day, and those Boomers are not like the retirement age population that came before them. They are a key group that will need orthopedic products, and perhaps not in the ways provider might initially predict. As an age cohort, Baby Boomers are more active and are engaged in a number athletic pursuits and recreational sports. Sports therapy and athletic orthopedics represent a key category for this patient segment.

Moreover, the Baby Boom is an age group willing to pay for items if they can’t get them funded. If a retail product, such as night splints, wrist splints or patellofemoral bands, can help a patient contend with nagging pain that diminishes their quality of life, Boomers will be willing to pay for it. Moreover, getting back to sports-related products, Baby Boomers are willing to buy them on a cash basis, as well, especially if that item can help them enjoying an active lifestyle. This is a patient group that is willing to be self-funded when it comes to getting what they want or need.

Prioritize product options and knowledge. There are a wide array of orthopedic solutions to suit various patients and conditions. The provider business must ensure that it provides adequate inventory of key solutions for patients, and it must also ensure that its staff is well versed on those products in terms of features and benefits. If your vendors offer any kind of product education, take advantage of it.

In terms of stocking your shelves, it’s key to have the products arranged by patient need and to ensure that everything is adequately stocked, not just in terms of type, but also size, color and style where applicable. Make sure to provide helpful signage that can help patients find what they need, and offer as much in-store product education through displays, posters, brochures and similar offerings. The more education you can provide, the better.

Provide consultative sales and service. Providers serving orthopedic customers must implement consultative sales and service. The range of orthopedic options can be staggering, and understanding their applicability to various conditions is critical, because it is very likely that customers will be confused by the wide spectrum of product choices. This puts providers in an excellent position to leverage their expertise to truly help a patient and establish a solid and lasting relationship. One of the key ways a provider can start that process is to simply listen and ask open-ended questions that can get the patient to open up about his or her condition and describe his or her problems in detail. Once you have a solid sense of the situation, you can start to make recommendations.

Work to educate referrals as often as possible. When it comes to helping orthopedic patients with funding, your physician and other healthcare partners aren’t going to be able to come to your store, so make sure to take your product knowledge to them. Work to meet with and educate orthopedic doctors and surgeons and general practice and rehab facilities so that you can share your expertise and the services and products you provide and the sorts of patients and conditions you can help.

Consider orthotics as an on-ramp into orthopedics. As a cash sales category, orthotics represent a solid way to increase retail revenues, since many are sold on a retail basis, and because they appeal to a wide variety of patients. The learning curve is also not as steep as some more complex orthopedic offerings, and the vendors of these solutions offering good product training and information, as well as good merchandising resources, such as displays and retail friendly packaging. Moreover, many patients that might need orthotics also might need other DME, related supplies, and, of course, additional orthopedic products.

Points to Remember:

  • Orthopedics represent a massive market, including groups such as rehab and post-surgery patients, sports injuries and customers who need support for athletics, and geriatrics, to name a few.
  • One key demographic that is altering orthopedic assumptions is Baby Boomers, who are remaining much more active later in life, and are broadening the orthopedic needs of older patients.
  • Providers should strive to ensure in-depth product knowledge on the team and foster a consultative sales and service approach. Strive to educate not just patients, but referral partners on what’s available.
  • Make sure to stock a wide range of products for the patient groups that your orthopedic practice will serve. Selection is critical.
  • Orthotics offer a good entry point for exploring the orthopedic market since they serve so many different types of patients.

Learn more:

  • Both the major member service organizations in the industry, VGM Group (vgm.com) and The MED Group (medgroup.com), have resources for providers interested in orthopedics and orthotics. The VGM Group’s Retail Services offers expertise in the category, and the MED Group offers a Rehab & Orthotics Network. And of course both groups offer products to members via their buying groups.

This article originally appeared in the June 2016 issue of HME Business.

About the Author

David Kopf is the Executive Editor of HME Business and DME Pharmacy magazine. Follow him on Twitter at @postacutenews.

Comments

Fri, Aug 25, 2017 Rudolf Hamsa Metairie,Louisiana

Interested in selling an orthopedic clinic in Metairie,LA. Can you make suggestions as to where to go?

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