Products & Technology
Exploring Orthopedic Opportunities
Orthopedics offer providers a great way to generate increased retail income, as well as funded revenue. What are the key considerations?
- By David Kopf
- Nov 01, 2016
Retail revenue: it’s something just about every provider seeks
in today’s funding market. In fact, there are some providers that have even
shifted their priority from the funded side of their businesses to the retail
side. The question is, where can providers find revenue and how can they
effectively pursue it?
The answer often lies in specialization. Providers that can concentrate
on a retail niche that pairs well with the patient groups that they serve
can leverage their relationships with those patients and the reputations
they have developed as product experts to encourage those patients to
consider non-funded solutions. For example, a provider that serves a large
number of seniors, as well as patients with mobility impairments might
enjoy considerable success in offering bathe safety items, home access
products, and aids to daily living.
One very key product category that has been part of the homecare
landscape for a considerable amount of time is orthopedics. Orthopedics
appeal to a wide range of patient groups while also providing a solid blend
of both retail and funded revenue.
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.
And, 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. There are number of referral sources that
providers can tap into in this regard, including surgeon practices, orthopedic
physicians, general practitioners, and podiatrists to name a few.
Also, providers want to focus on a blended approach for funded patients.
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.
As we can see, 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. How do they
The Orthopedic Marketplace
Perhaps the best place to begin is to understand the size of the orthopedic
marketplace. On a purely anecdotal basis, there’s a good chance that a
quarter of a typical provider’s existing clientele could benefit from some
kind of orthopedic product. There are simply too many conditions and too
many orthopedic solutions for orthopedics not to be a part of everyday life.
Looking at patient segments, there are many groups that benefit from 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.
Moreover, each of those 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.
And in addition to the types of patient groups, it’s important to understand
how some of those patient groups are changing. This is especially
true when it comes to senior clients. They are a key patient segment that
will need orthopedic products, but perhaps not in the ways provider might
initially predict. Where the Baby Boom generation is concerned, there are
10,000 people turning 65 every day, and those Boomers are not like the
retirement age population that came before them.
Where previous generations of Americans in their mid to late 60s might
have limited their athletic activity to a nice walk or good game of golf, the
Baby Boom generation is changing all that. They are pushing the envelope
of retirement activities by regularly participating in challenging athletic
endeavors such as triathlons. 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.
And they aren’t necessarily going to settle for funded orthopedic offerings,
either. This is a patient group that is willing to be self-funded when it
comes to getting what they want or need. 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 when Medicare won’t. This is especially becoming
the case for sports-related orthopedic 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.
The Right Product Range
This means the onus is on providers to stock a wide range of offerings
that will appeal to the varied needs of changing patient groups and
funding circumstances. And again, because there is such 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.
So which products are ideal for the different patient groups? Well let’s
break each segment down and review the products that are right for them:
Rehab patients — These patients will need orthopedic offerings that focus
on the Wrist, ankle, knee, back and neck. Ice packs, heat pads and other pain
relief products, possibly including TENS units, are good pairings, as well.
Athletic patients — These are patients that regularly engage in athletic
activity, as well as those who might be weekend warriors. In fact, America
has become so fitness-focused that a large segment of the orthopedic
market really caters to just these users. Like rehab patients, good products
for this niche are wrist, ankle, knee, back supports, and arm slings. Ice
packs. And again, pain relief products are ideal for this group.
Seniors — Many of the orthopedic offerings provided to this group will
address both new and chronic conditions. Moreover, there’s a good chance
that there will be multiple “clients” involved in the sale, such as family and
caregivers. Common orthopedic offerings used by seniors address the
ankle, wrist, elbow and shoulder, as well as immobilizers.
Post-surgery patients — This is a key funded group of patients, who need
orthopedic offerings to assist in their post-surgical recuperation. Referral
partner marketing will be key in this scenario. These patients will need items
for abdominal support, knees, ankles and arm slings.
Maternity patients — This will be a particularly important category for
providers striving to specialize in women’s health, but shouldn’t be ignored
by orthopedic providers at all. These patients benefit from items such as
back supports and prenatal cradles.
General injuries — There are a lot of weekend warriors, do it yourselfers,
and everyday people who wind up injuring themselves either in the pursuit
of fun, or simply by accident. Many of these patients are self-treating and
looking for an expert who can provide some solid advice. To help these
patients, providers should stock a wide range of items, such as wrist, back
support, ankle, knee, elbows, arm slings, and cervical collars, as well as the
aforementioned pain relief products.
It’s also important to consider looks when it comes to orthopedic products.
Today’s orthopedic offerings clearly are the result of not just solid medical
research, but product design, as well. They deliver a therapeutic benefit while
looking good. It is key for providers to consider their customers and then
think about how they will respond to not just the features and benefits of
any given orthopedic product, but how they will feel about wearing it. Will it
match their lifestyle, their aesthetic sensibilities, or their fashion tastes? These
are actually considerations that truly matter, and a provider should take them
seriously when stocking their orthopedic offerings.
Adding Compression to the Mix
In addition to classic orthopedic products, providers should consider adding
compression to their lineup as a complimentary product line. While compression
is often associated with wound care, many conditions treated by orthopedic
products can also involve compression garments and wraps, because
compression not only increases blood flow, but also provides support.
Furthermore, the demographics of compression are similar. There are a
large number of diabetic patients, seniors and other major patient populations
that need compression, and the number of transactions can get very
large. In fact, one market study reported that the worldwide compression
market will swell from $2.4 billion in 2012 to $3.4 billion in 2019, at a
compound annual growth rate (CAGR) of 5.1 percent.
Like orthopedic products, providers should stock a wide range of product
types, sizes, colors and styles of compression garments. As mentioned,
color and style are more important than providers might initially realize.
While compression garments serve a purpose, at the end of the day they are
clothing, and that means that fashion does play a role. Compression therapy
or not, people want to feel what they’re wearing makes them look good.
Also, education is key in offering compression. Because compression
garments are hard to put on and the compression ratings are applied to different conditions, it is a good idea to have a certified compression fitter
on the team. This person will not only help ensure that patients are getting
the right grade of compression and the correct format of garment (such as
closed, or open toe) for the patient, but show the patients how to put on
and take off those items. (And donning and doffing compression items can
be hard for some patient groups, such as seniors.)
Many compression manufacturers offer webinars,
in-store training and knowledgeable customer
service reps that will help providers learn more
about their products, compression technology and
matching patients with product.
Merchandising & Showroom
In terms of how providers should sock their shelves,
in basic terms, they should 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. But
since many of these customers are going to be retail,
providers must take their merchandising far beyond
The provider must create a “retail experience”
that will drive increased sales. When orthopedic
customers come to the providers’ retail location with
cash sales in mind, they will expect the same kind of
experience they get from a store in the local mall. A
funded patient comes to the provider with a prescription
and set expectations. A cash sales customer is
looking for options, information and a range of solutions
that can help make an informed purchase.
Bearing that in mind, the showroom must also feel
inviting, comfortable, and in a way, empowering. The
retail orthopedic customer wants to be able to know
that she can get help, but at the same time feel like
he is in charge. A smart showroom can help instill all
these components of the retail experience.
You want to put clients in the driver’s seat. 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. The showroom
should educate patients on the benefits of
your inventory to ensure they get the right product
to support their needs. Done right, those kinds of
educational displays can support the staff’s sales
and service process, as well.
Sales and Service
And that’s important, because at the end of the day,
the true “make or break” in whether or not your business
succeeds in truly helping orthopedic clients is
Product expertise is the cornerstone of a providers
value, so provider staff should have a solid understanding
of disease states that are involved and
the products that service them. Staff should know
the features and benefits of key category products
and to be able to effectively communicate that with
So, providers must strive to ensure their customer service representatives are thoroughly trained by manufactures on your
product lines, and hopefully via other third party sources, as well. The goal
is to make our team members product gurus who can make the right recommendations
to customers so that they have confidence those customers will
walk out of the store with an orthopedic offering that will provide the right therapeutic benefit and that the customer will truly like and value.
In terms of the actual sales and service process, providers serving orthopedic
customers should strive for their teams to use a consultative sales and
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.
When it comes to helping orthopedic patients with funding, providers
must have a solid referral marketing and education program in place.
Implement a dedicated program to educate referrals as often as possible.
Your referring physicians and other referral partners aren’t going to be able
to come to your store to check out your offerings, so make sure to take your
product knowledge to them.
In-services are key in keeping your partners up to date on your latest
offerings. 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. Also, make sure to not only talk up your products,
but your team, as well. Describe your on-staff expertise to your referrals so
that you drive home the point that you are a knowledgeable, dedicated and
reliable resource for their patients.
Ultimately, orthopedics represents a key product category for providers,
both in terms expanding retail and funded revenue. The key is to approach
it in the same way a provider would explore any new territory: get a solid
sense of the landscape and then take cautious, well considered steps into a
Tapping Into Orthopedic Expertise
Besides the manufacturers of orthopedic products, there are solid educational resources
in the industry. For starters, Medtrade Spring and Medtrade Fall both offer expos with
loads of orthopedic products, as well as conference tracks that provide useful education.
Additionally, 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 November 2016 issue of HME Business.