Landauer reels in big fish
MOUNT VERNON, N.Y. – It’s been two years in the making, but Landauer Metropolitan Inc.’s (LMI) readmission reduction program is ready for prime time.
The provider on Oct. 17 launched the program in partnership with a major insurance company for patients in 32 hospitals in four states. LMI and the insurer will identify patients at high-risk for readmissions.
“This carrier feels that this is going to be beneficial—they are our first buy-in,” said Drew Devlin, vice president for clinical services. “And, with the data we were able to show them, we were able to negotiate better contracted rates with them.”
LMI in 2011 launched a pilot program to collect data showing that its disease management program could help reduce hospital readmission rates for COPD, CHF and pneumonia. The multi-tiered program is tailored to suit the individual patient, and can include everything from educational literature to phone consultations to multiple in-home visits from a clinician.
So far, the provider has seen a 25% reduction in readmissions. As the program rolls out, LMI will continue to collect readmissions data. That, in turn, will help them sell the program to others.
“The first fish is the hardest to catch,” said Lou Rocco, CEO. “We have a lot of traction and we’re close to signing more agreements.”
For LMI, the program is one part of a three-pronged approach aimed at mitigating the loss of revenue it expects from the competitive bidding program. The other two: expanding into “non-core markets” like back braces, negative pressure wound therapy, pain management and anticoagulation therapy; and streamlining operations. LMI has reduced its workforce of 900 employees by 7% over the past year and is consolidating vendor relationships to increase its buying power.
“We realized years ago that we are not going to be able to grow our business by just dropping off medical equipment,” said Rocco.