'We're looking to become more of a distributor'

WICHITA, Kan.--Allied Medical Supply, an HME retailer, retooled its business model in June by expanding its reach to different products  (syringes and EKG machines) and  payers (physician offices and long-term care facilities).

“With the downturn in the economy, we wanted to be able to reach more people,” said David Ray, owner. “We're looking to become more of a nationwide distributor.”

To support its new business model, Allied Medical has teamed up with National Distribution & Contracting (NDC), a Nashville, Tenn.-based member service organization/distributor, giving it access to more than 90,000 products from more than 300 manufacturers of medical equipment and supplies.

Additionally, Allied Medical has added 1,200 square feet of warehouse space and redesigned its Web site, www.alliedmedicalsupply.com.

Despite its new focus on distribution, Allied Medical remains open to the public.

“Nothing changes there - other than that our walk-in customers now have many more products to choose from,” Ray said. “We're keeping shipping in the back and a showroom in the front.”

When Ray started Allied Medical about a year and a half ago, he stayed away from Medicare on purpose.

“I wanted to take the business in a different direction,” said Ray, who has been a silent partner in several traditional HME companies. “I'm glad I did.”

Provider Alan Grogan, who also works with NDC, knows the feeling. His company, Lexington, Ky.-based Grogan's Healthcare Supply, has been distributing medical equipment and supplies since 1960. It has about 1,200 customers, including hospitals, nursing homes and schools.

“When Medicare came onto the scene and it began to explode, we chose pieces of that business to get into,” Grogan said. “But we've remained focused on distribution. It's more predictable.”