Professional Development
Article after article has been written over the past year about how we, as dealers, can improve our margins and ensure success in this highly competitive market. We can do this by measuring the average period of time it takes for us to turn one dollar of revenue into one dollar in cash, or in other words, management of our DSO. We can certainly measure our CSR's performance to determine our shortcomings on the front end. We can add a module to our IS to handle multiple price categories or monitor live inventory. By routinely analyzing our purchasing habits and improving product acquisition measures, we can enhance or change our retail approach to the business. We can anticipate and, if appropriate, participate in competitive bidding situations, redefine our parameters for accepting managed care contracts, and look to alternative avenues for referrals through networking. Not one of these subjects reflects on a company's greatest assets -- its people.
Is it not true that how we treat our customers is a direct reflection on how we as managers treat our employees? We should never lose sight of the fact that people make a company what it is today and what it will be tomorrow.
We should not, however, forget our people in the development and organizational sense as well as the retention situation. Have we taken our people for granted? Like other industries, the employee in the home health care market does not always feel as passionate as the owner about the mission of the organization, and they may be confused about how they fit in to the organization's changing future. Many employees are becoming discouraged when they hear or read about the industry's problems relative to reimbursement schedules and the expense involved with quality service.
In all types of industries, employee training and development is usually ranked first or second on lists of the top methods to increase employee retention. Seventy-three percent of all companies provide leadership development programs, with team building and empowerment programs right behind. In the home health care industry, many of a company's key executives, managers and supervisors are licensed professionals with extensive clinical backgrounds, but they possess very little in the way of formal management training.
Our business is very simple: Take orders for products that are medically justified; approve modality by the payer following confirmation of the patient's benefits and coverage; process the order after it has met all the qualifications in terms of profitability for the company; deliver such product in a timely manner with minimal expense; upon receipt of acknowledgement of delivery, bill the appropriate payer; await payment, which normally takes approximately 85 days or more; and also keep the company's accounts receivable over 120 days below 27 percent of our total revenue, which is industry average.
How many people in your company get involved in any of these processes?
Now is the time to develop both your people and organization simultaneously to improve productivity and profitability through training and education. Leadership starts at the top.
The philosophical approach and practical application of this type of training must be instilled in all managers and supervisors by the executive team. Many companies suffering from normal industry problems can affect resolution to such by looking at organizational and personnel development that can lead to enhanced performance with improved productivity.
There is no better time than now for the small independent HME owner to start acting like a real leader and develop employees to make your company stronger to handle this highly competitive environment.
Leadership management programs are available in presentation, seminar or spaced-repetition formats - which are convenient for most management personnel because the time required for presentation allows managers to miss the least amount of time from the office. It also will provide multi sensory impact, compliment the classroom activities with audio reinforcement, and allow the participant to complete assignments at home or at work.
More importantly, it has been demonstrated that participants completing such programs implement more course techniques into their daily work activities and change many of their current behavioral processes.
Almost any program, product, or process can be customized to meet the needs of your company. Every member on your management team should participate in a leadership management program custom designed to compliment your mission, vision and values. Quality management starts at the top and the best way to demonstrate such is to "lead by example."
Hohmann has been involved in the home health care and DME marketplace for more than 30 years in positions spanning from field representative to CEO to owner of his own company. Currently, he is the vice president for Innovative Leadership of the Delaware Valley, a performance improvement company specializing in organizational development and personal growth through training and education. Contact: 732 Society Hill Blvd., Cherry Hill, NJ 08003-2424; (856) 489-8665; Fax (856) 489-8665 (press * 14); Email: [email protected].
This article appeared in Home Health Products, Vol. 8, No. 8.
This article originally appeared in the September 2000 issue of HME Business.