new ideas. new products. new relationships.

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1 new ideas. new products. new relationships.

2 What is the DMEPOS Competitive Bidding Program? According to CMS The Competitive Bidding Program replaces outdated Medicare prices with lower, more accurate prices. Helps you and Medicare save money Ensures that you have access to certain quality medical equipment, supplies, and services from suppliers you can trust Helps limit fraud and abuse in the Medicare Program new ideas. new products. new relationships.

3 What the DMEPOS Competitive Bidding Program really is A program destined to fail!! Why? 1. CB rules violate a basic principle of auction design: Bids MUST BE Binding Commitments. 244 Economic and bidding experts, with nothing to gain, have outlined why the program will fail 2. The Pricing Calculation Is Flawed 3. Composite Bids Are Distorted 4. Lack of Transparency 5. The Bidding Program Is Designed to Be Gamed 6. CMS Monitoring Is Weak and Non-Transparent 7. No Due Process new ideas. new products. new relationships.

4 Competitive bidding in Medicare is a proposal that sounds good, but, in fact, reduces access to care, patient choice, and quality of care. It selectively contracts with a limited number of homecare providers based on the lowest bid prices. It results in lowest common denominator health care for seniors and homecare patients. It forces out providers who utilize high-quality medical equipment or provide critical patient services. It forces certain patients to switch away from providers they rely on and trust. new ideas. new products. new relationships.

5 It ignores the provider's ability to serve a geographic market, meaning fewer home visits to patients in rural areas. Reduced access to equipment service for patients. Reduced access to commonly prescribed products. Fewer resources to set up/adjust wheelchairs, walkers, and hospital beds. It s estimated that Competitive bidding will result in the loss of 100,000 + jobs new ideas. new products. new relationships.

6 91 Round Two Metro Areas 100 Total Bidding CBAs new ideas. new products. new relationships.

7 Why Should I Care?? It s estimated that CB will eliminate 100,000+ jobs Less providers = less sales opportunities for you new ideas. new products. new relationships.

8 There is a Better Solution The Market Pricing Program (MPP) These changes are consistent with Congress original intent: To create a program that is based on competition while maintaining beneficiary access to quality items and services. The MPP would be implemented: On the same timetable Apply to the same DME product categories as the current program, Will reduce government spending for DME items nationwide. It is intended to be budget-neutral. new ideas. new products. new relationships.

9 Average Margin will decline by 30-35%

10 AN ESTIMATED 40% OF HME PROVIDERS WILL NOT MAKE IT Win or lose CB-Sales needs to be #1 core competency Their business future entirely depends on their ability to sell

11 HME PROVIDERS MUST SELL/ SERVE 3 TO 4 TIMES MORE PATIENTS TO MAKE THE SAME MONEY 5 TO 10 TIMES TO MAKE MORE

12 Old School =Out of Business The way most companies are selling is too slow, too costly unpredictable, antiquated and not getting the results needed to survive and thrive in the new age of competitive bidding, healthcare legislation, and other threats.

13 The Driving Factors of Time Change Margin decline Rising cost of field sales visits Changing communication preferences Increase customer demand for responsiveness

14 The Triple Threat

15 Making Sales & Making Hamburgers

16 The 7 Steps of Sales Mastery

17 What are the Factors Influencing Buying Decisions 17% 3% 30% 24% Peer recommendations Web searches Industry publications Trade events Other (please specify) 26%

18 The Top Five Reasons They Choose a Company to Work with: Patient Experience Cost Peer Recommendation Reputation Location

19 Motivations for Switching Better Solutions Lack of Responsiveness Cost

20 The Keys to Unlocking the Sale What are my unique selling points? What makes us different? What makes us better? Why does sending my company new business make sense to my customer? Why is switching business over to us is better for my customers? Can I reference any signature institutions, third party endorsements, testimonials or awards?

21 This is OUR Time! The Only Easy Day was YESTERDAY

22 Contact Us! Kevin Gaffney, CEM Group Show Director The Nielsen Company Mobile: Fax: Michael L. Sperduti President and CEO Office: Toll free: x303 Mobile: Fax: new ideas. new products. new relationships.