Lincoln Home steps back from the brink
PLEASANTVILLE, N.J. – Some providers facing difficulties might try to save face, but Paul Reses is frank about his hard times—and his recovery.
“It’s been tough these past two years,” said Reses, co-owner of Pleasantville, N.J.-based Lincoln Home Medical. “We’re lucky enough to have avoided competitive bidding in the three counties we serve in New Jersey—it’s allowed us to restructure. Fast-forward to now, and we’ve got a lower payroll and great relationships with the vendors that stood by us.”
It started with lost income: Reduced revenue from Medicare because of audits and changing policies for capped rentals put Reses 120 days behind on his bills. He knew he had to make big changes.
After some candid discussions, Reses lowered payroll expenses through employee attrition, with a clinician taking on some sales duties and other employees taking on repairs.
“They knew there was a problem, and we all needed to work together to save their jobs,” said Reses.
A similar honesty with vendors netted Reses some breathing room on paying his bills. As things started to turn around, he relied on vendors for new displays to brighten the sales floor.
In the end, it all came down to streamlining and investing in the right tools, Reses said, from a software program that allowed him to track trends within his company to CPAP devices that reported instant results.
“You don’t have to do this all at once, and it doesn’t have to be overwhelming,” he said. “But it needs to start now.”