Jaysec offers 'free revenue'

Friday, July 31, 2009

ATHENS, Tenn.--When it comes to helping HME providers replenish CPAP supplies for patients, Jaysec Technologies aims to be the ultimate middleman.

The software company this month officially launched its replenishment program, which has been in the works for about two years and in a testing phase since June. COO John Slautterback calls the new program “basically a free revenue stream” for HME providers.

The program caters to HMEs who want to replenish their patients’ CPAP supplies (and reap the reoccurring revenue) but don’t want to buy, store, pick, pack and ship it. What’s more, by making the replenishment process as close to painless as possible for providers, Jaysec helps manufacturers boost their business, too, Slautterback said.

Wright & Filippis in Rochester Hills, Mich., tried out the replenishment program this spring and loved it, said Tim Hatt, the company’s director of HME.

“From where we sit, it is a way for a company like ours to grow our CPAP replenishment business without adding CSR staff, square feet for warehousing, or staff to pick and pull,” Hatt said. “It address all those things that make HMEs hesitate to invest and move forward.”

Right now, Jaysec warehouses CPAP masks, tubing and other supplies by four manufacturers: Respironics, ResMed, Roscoe Medical and Fisher & Paykel. Providers who participate in the program use Jaysec’s auto-ship software. Auto-ship includes a list of patients who require supplies on a regular basis (every 30, 60 or 90 days for example). After checking with the patient to make sure he still requires supplies, the HME clicks auto-ship and Jaysec fulfills the order.

“It’s a revenue stream (for providers) that’s generated with no addition of product, people or warehousing space,” Slautterback said. “You don’t pay for anything until you generate an order.”

Jaysec generates one invoice a week, billing the provider for shipping and a $6 handling fee for each order. Jaysec transmits a report of all replenishments to each manufacturer, who then bill individual providers at their contracted price.

Jaysec’s fulfillment program can save the average HME $2 to $10 per shipment, Slautterback said.