Overview of the Medical Supplies Industry

Without proper supplies, any venture will fail. This is especially true in the medical industry, where supplies are vital to good healthcare. While there is a shortage of doctors and nurses, there is no shortage of sick people in our aging population so the demand for supplies is ongoing and everlasting.

Globally,the  medical equipment and supplies industry has annual revenues of $273 billion and is expected to grow to $349 billion in 2016. Included is a vast array of products: catheters, monitoring systems, pumps, wound care, specialty bags, etc. Some key markets include surgical supplies at 45% of the market, with catheters ($32 billion) as a significant subset as well as patient monitoring systems ($9.3 billion) and wound care supplies.

The medical supply industry is expected to increase as the percentage of the elderly portion of the US grows by 146% from now to 2050. Technological innovation is also expected to impact the industry positively, as well as an increase in medical tourism and advertising of products directly to potential customers.

As medical supply companies grow, they need better cash flow to manage their resources. Factoring is a way to keep staff and bills paid so the company can focus on making excellent and innovative products to save lives.

For the full article, see Medical Equipment and Supply Industry: Market Research Reports, Statistics and Analysis

Medical Technology Reduces Error, Saves Lives

In any industry, communication is key- but none more so than healthcare, where it literally means life or death for patients every single day. The Institute of Medicine estimates that 98,000 people die every year from preventable medical errors, which would make it the 6th leading cause of death in America if the CDC counted the category.

According to the article The Clinical Connectivity Gap, breakdowns in communications systems are a common cause of medical errors. Many hospitals are starting to use technology like Bedside Medication Verification Systems that ensure caregivers deliver the right medication dosage at the right time. The use of technology greatly reduces unavoidable human error in dosage.

Another medical innovation that can reduce error is Electronic Health Records (EHRs), which are a systematic collection of health information about individual patients or populations. EHRs are still in their infancy but are being implemented more and more, despite a high cost. Starting in 2015, all hospitals will be required to use them or face penalties under Medicare.

As more hospitals implement technologies like EHRs and Bedside Verification Systems, costs are inevitably going to rise. Some may turn to factoring for cash flow financing, so factors should be aware of trends and changes within the industry.

Size of Staff Now Matters to 2014 Obamacare

While the Affordable Care Act doesn’t go into full effect until 2014, business owners should be aware that the size of their staff this year determines whether they are hit by penalties.

Most SBOs know by now that any company with over 50 full-time equivalent employees will be required to provide healthcare for their employees in 2014 or face fines. However, some aren’t aware that the government will be using staff data from 2013 to determine whether a company falls under the provision. According to the WSJ article Insurance Rule Will Go By Size Of 2013 Staff, this could change some SBO’s plans to change their staff next year. Rather than wait, they should make the changes this year while there is still time. A misunderstanding of the provision’s rules will have some companies blindsided with penalties in 2014.

Once business owners get wise to the rules, staffing in these companies may be rearranged and reorganized. Change often brings opportunity, and industries like temporary staffing will probably be the most affected.

What Does Obamacare Mean for Small Business?

While the brunt of the Affordable Care Act doesn’t come into effect until next January, now is the time for small businesses to get informed and make plans for the future. Although companies with fewer than 50 full-time equivalent employees will not be penalized for not offering healthcare, there are several things that they must keep in mind.

Disclosure: At the very least, small businesses are required to inform their employees in writing about the new law and health exchanges. The deadline to do so was originally March 1st, but now information about exchanges should be avaialble to employerts starting in October. If they do offer healthcare, then they also must make sure it complies with the ACA.

Exchanges: Starting in 2014, state health insurance exchanges will be established that allow small businesses to shop for affordable coverage. Businesses with 100 or fewer employees are eligible for the Small Business Health Options Program (SHOP), although some states may opt to lower the requirement to 50 employees or less until 2016. Companies can also choose to shop on the traditional insurance market, and private third party exchanges will be set up as well.

Costs: The question on small business owners’ minds is what healthcare reform is going to cost their business. According to an Urban Institute analysis last year, small business costs might actually be reduced by the new law. Costs per person would only be higher for mid-sized businesses, and large business costs will likely stay the same.

Now is the time to get informed about what Obamacare means for small business, while there is still time to prepare. Know the requirements now so you don’t get blindsided by unforeseen costs in the future.

For the full article, see Obamacare 101

HCA’s Parallon Acquires Healthcare Staffing Firm

Parallon Business Solutions, subsidiary of healthcare service provider HCA, recently bought a Texas based healthcare staffing agency to supplement their workforce management offerings. Their new acquisition (Martin,Fletcher) will add physician staffing to the existing pool of 7,000 health professionals. Parallon will now be able to fill temporary and full time physicians to client hospitals and elsewhere, in addition to nurses and allied staff such as dieticians and physical therapists.

This acquisition comes as no surprise in light of recent trends towards staffing, especially in the healthcare industry. Health care as we know it is changing, due in part to the Affordable Care Act and also the coming nationwide shortages of health professionals. By buying Martin, Fletcher, Parallon is simply seeking to stay ahead of the curve by forecasting the need for temporary health care workers to fill shortages.

For the full article, see HCA’s Parallon Buys Texas Company

Marketing Directly to Consumers of Private Duty Health Home Care

October 12, 2012
A recent article in the Private Duty Today newsletter addresses an issue that home healthcare providers often face: how to effectively market their services without breaking the bank.  After conducting market research, the author of the article put together a breakdown of the most effective marketing methods for this important field. The top four of the top results are displayed below, along with the percentage of responders who found the technique highly effective:

  1. Website (62.5%)
    You must have a functioning website that ranks high on search engines.
  2. Health Fairs (45.2%)
    Take advantage of opportunities for networking with other health care providers and getting that referral when the time comes.
  3. Sponsorship of Community Events (34.3%)
    A banner ad isn’t enough; you have to be actively involved with the event you sponsor (such as an Alzheimer’s Association or Parksinson’s disease fundraiser)
  4. Writing for Local Magazines and Newspapers (25.8%)
    A great way to build your brand is to write a column or an “Ask the Experts” in the local newspaper dealing with aging issues .

See the original article, Marketing Directly to Consumers of Private Duty Health Home Care.

Hospitals for Profit or for Help?

Did anyone see the article A Giant Hospital Chain is Blazing a Profit Trail in the NYTimes earlier this week?

The article talks about HCA’s revamped billing procedures and revised patient screenings that have led them to be extremely profitable health care industry giant during a time when so many of America’s hospitals have been struggling to stay out of the red.

According to the article, “Among the secrets to HCA’s success: It figured out how to get more revenue from private insurance companies, patients and Medicare by billing much more aggressively for its services than ever before; it found ways to reduce emergency room overcrowding and expenses; and it experimented with new ways to reduce the costs of its medical staff, a move that sometimes led to conflicts with doctors and nurses over concerns about patient care.”

What are your thoughts on this article?

Thoughts on ACE2012

The medical transcription invoice factoring specialists from PRN Funding are all unpacked and settling back in from their visit to Indianapolis for AHDI’s Annual Convention and Expo at the JW Marriott Indianapolis. Specifically, PRN Funding had the opportunity to meet up with one of our current clients, and we bumped into two previous clients at the show.

A few additional observations from this year’s conference (from the exhibitor’s perspective):

    1. It seemed like the show, as a whole, was much smaller than in the past. It felt like there were fewer bodies in the exhibit hall (both exhibitors and attendees) at this show.
    2. The attendees were professional and eager to learn about PRN Funding’s medical transcription factoring services. PRN Funding was able to discuss how factoring can help small MTSOs balance out their cash flow to many attendees.
    3. The exhibitors were engaging and interactive.
    4. Everyone (exhibitors and attendees alike) enjoyed the Treasure Hunt (PRN Funding was a participant).

      PRN Funding is dedicated to help medical transcription service owners continue to maintain a positive cash flow as the transcription and documentation industry continues to change over the years. We look forward to seeing everyone again in Lake Buena Vista, FL in 2013.

      Advantages of Social Media Marketing for Homecare Agencies

      The July issue of HomeCare magazine published an article discussing a marketing method that our home care factoring clientele–current and prospective–may want to take to heart.

      While some businesses may do fine to refrain from the use of social media to market their goods, the interpersonal nature of Home Healthcare lends itself perfectly to the use of Facebook to better market to sick and elderly individuals in need of care.

      Since Facebook is an interactive, largely visual medium, it can be an excellent way to display the ability of your company to engage with patients face-to-face. Your tone of voice as well as pictures displayed on your page portraying interactions with clients, will give potential patients considering placing themselves under your care an idea of what they can expect.

      As your home healthcare business grows–whatever your specialty–you can expect that patients’ invoices, or clients’ payments will be delayed. Fast access to cash is necessary for growth. Home healthcare factoring and/or nurse staffing factoring may be the perfect solution to your cash flow needs.

      Supreme Court Stuns Nation with Obamacare Decision

      The outcome appeared uncertain, but in a 5-4 decision, the Supreme Court ruled the Patient Protection and Affordable Care Act to be constitutional in accordance with U.S. tax laws.

      Chief Justice John Roberts opined that the individual mandate, the clause compelling all Americans to own some sort of health insurance, was unconstitutional if the penalty took the form of a fine. Instead, if

      Americans decided not to follow the individual mandate, they would be taxed in accordance with the burden that any potential uninsured illnesses might pose to taxpayers.

      Though, prior to signing the bill into law in March 2010, the president had vehemently denied the bill to be a tax, his wording was corrected by the court on Thursday June 28, 2012.

      Beyond compelling Americans to purchase policies from healthcare insurance companies, the bill also limits insurance companies’ rights to severability. The PPACA holds that no insurance company can terminate coverage because of a person’s pre-existing condition.

      Limitations upon the rights of private sector insurance firms are subsequently countered by the bill’s expansion of Medicaid. The federal government has offered to fund the expansion in every state, to the tune of 100% of the cost.

      The act, pejoratively known as Obamacare, has a host of pros and cons that will be sure to affect the well-being of each and every American. It is unforeseeable how our small business, healthcare factoring clientele will be affected, but we will keep you posted as new information becomes available.

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