Provider makes GO of new venture

B2B venture distributes incontinence supplies
Friday, March 28, 2014

GREEN BAY, Wis. – HME Home Medical might not win a price war with medical supply behemoths like Medline and McKesson, but the provider does think it can win a few battles.

On March 1, HME Home Medical launched GO HME, a business-to-business program to distribute incontinence and skin care products, and disposable gloves to skilled nursing homes, hospitals and even other HME providers.

“Many facilities were asking if we would sell them supplies,” said Eric Hagen, director of business development. “What we are able to do is offer a lot more services to their patients that are going to leave those facilities. We can be much more integrated into their operations than some of those other companies can be.”

HME Home Medical has partnered with several major incontinence manufacturers to serve as a distributor. The provider has also secured a preferred distributorship with Eau Claire, Wis.-based Presto Absorbent Products to act as its distributor in Wisconsin and Illinois. 

By buying in larger quantities, GO HME can offer better prices on the products; and because it’s a cash business, there’s no billing overhead.

“You don’t have to pay 14 people to bill it and wait 90 days to get paid—if you even get paid,” said Hagen.

HME Home Medical already has a robust resupply program that has grown 300% in two years. The provider plans to share what’s made that program so successful with its HME partners that will serve as distributors in regions outside its service area.

“If we help them sell more, we sell more,” said Hagen. 

Disposable medical supplies are big business these days, as evidenced by recent deals in the space, including AssuraMed’s acquisition of UroMed in January. To some extent, such deals have actually benefitted HME Home Medical, says Hagen.

“Some of those haven’t gone as well as they expected,” he said. “They are not able to provide the same level of service as before. We go a little above.”