2021 HME Business Handbook: Strategy
Sourcing Your Best HME Employee
You've hear of outsourcing, but have you heard of insourcing? There's a difference and a unique approach to HME staffing might be just the flexible option you need.
- By Todd Usher
- Jun 01, 2021
I started as a delivery
technician for a local HME
company in 1996. I worked
very hard, got lots of overtime,
and looked for opportunities for
advancement. After a couple of
years, I started to promote and
eventually was assigned to manage
a region of branches. I soon left
and did a short stint at a national
HME provider, then joined the
sales team of an international
manufacturer.
After opening our DME
company, we hired, grew, received
contracts, and had a solid foundation.
Then the bottom started to
crumble with regular cuts to reimbursement,
competitive bidding,
and finally, the death knell of the
rural rollout. At that time, we
laid off some employees, most of
our sales team, and managed our
expenses — barely.
It was not until we hired the
first remote team member that we
started to notice a difference. We
decided to “insource” and not
outsource. What is the difference?
We did not “farm” out our backend
functions or hire a service
to take care of a certain task. We
hired remote personnel directly
assigned to our business from a
third party. They are not shared or
sourced from a pool.
The “insourced” team members report
directly to us every day, eight hours a
day, 40 hours a week. We developed a
relationship with them, got to know their
strengths and weaknesses, their capabilities,
and their desires to succeed. Like any
other employee in the past, we know the
capabilities and unique skillsets of our
team. When we outsourced, we only knew
a “point” person and had no idea who was
working our accounts. They were nameless
and faceless. With insourcing, I know
who is working for us, and we hold them
accountable accordingly.
The difference was not just our
expenses for payroll but was also the
professional work ethic exhibited by the
team member. We hired a second remote
person, then a third remote person,
and moved on to our entire operation
between two branches and a sleep diagnostic
lab we opened a few years later.
The level of commitment, loyalty, and
willingness to learn; the ability to achieve
a high level of results; these things had
not been seen in most of our previous
local-based staff. The behaviors exhibited
by our previous staff were “put in
your eight and hit the gate.”
Previously, we saw little loyalty or
commitment. “WIIFM” (What’s in it for
me) was the common attitude from local
workers. However, with the remote team,
we’re now achieving our KPI standards
and have quickly excelled to meet our
KPI goals. They did this by showing
up every day, on time, and wanting to
achieve the praise of their supervisor.
This had not been the case previously. I
was astonished at the insourced team’s
level of professionalism in the workplace
and the desire to work with our patients
and satisfy all those they meet.
The cost savings to our labor pool was
evident within the first month. We saved
more than $500,000 after the first year of
making this transition. Looking back, I do
not know how we had any semblance of
success without our current team. They have
become an integral part of our day-to-day
operations and continue to achieve a high
level of success in all departments; intake,
customer service, billing, clinical, logistics,
bookkeeping, and now management.
It has truly transformed our business
into a company we look forward to
working with a team willing to strive for
more. The wonderful team mentality,
along with a strong desire for customer
satisfaction, is commonplace with
everyone on the team. This has undoubtedly
kept me in our industry. The remote
team also encouraged our remaining
local team members as they now have a
strong support team surrounding them.
It seemed to raise the entire level of
professionalism and work ethic among all
team members.
Over the last few years, I have noticed
the HME industry is behind the times in
this arena. Many national corporations
have been known to have an international
workforce, especially in the tech industry.
Additionally, I have learned that many
healthcare companies, such as payers,
have international workforces. Some
National DME companies have had international
workforces for years, coincidentally
since 2016! I see exactly why. It brings
our cost of doing business down to a level
where the sting of reimbursement cuts
does not hurt as bad and can make things
in our industry a little more palatable.
POINTS TO REMEMBER
- Team members are assigned to you
full-time and not shared with any
other business.
- Team members are competent and
trained.
- They are easily integrated into an
existing operation.
- Cost savings are immediate and
substantial.
- A good resource to scale your business
and have a talent pool ready
for onboarding.
LEARN MORE
To find out more about insourcing, visit
www.tacticalbackoffice.com or watch
its YouTube channel at youtube.com/channel/UCdhes_SQYTj6hILIgo2EZjg.
This article originally appeared in the May/Jun 2021 issue of HME Business.
About the Author
Todd Usher is the founder of Tactical Back Office Inc. Usher started in the HME industry 25 years ago, in 1996. Holding many positions for local, regional, and national providers and manufacturers, he helped his wife start their own HME business in 2008. They have since opened other companies that complement healthcare and enjoy working with vendors and providers throughout the United States.