10-year snapshot—It’s not as bad as you think
I’m not going to lie. When I asked Rick Glass, who always presents the results of our Financial Benchmarking Survey at the HME News Business Summit, to put together a 10-year snapshot to recognize 10 years of the survey, I was a little worried about what’d I’d get back.
As any of you know, a lot has happened to the HME industry in 10 years—a lot of it not good.
And as any of you know, Rick is not one to sugarcoat reality. If it’s bad, he’s going to tell you it’s bad.
So I was pleasantly surprised when Rick came back to me with this slide.
Granted, these numbers represent a small slice of the HME industry. And I tend to think that the providers who complete the survey tend to be the providers who have healthier businesses.
The number of providers who report Medicare as a large part of their business is decreasing—from 44% in 2007 to 25% in 2016. This, to me, means you really are changing your business model, whether it’s more non-Medicare business or more cash sales.
The number of providers who report revenues grew year over year has remained relatively stable—65% in 2007 and 62% in 2016. This, to me, means cost cutting and strategic efficiencies are allowing you to do more with less.
The number of providers who reported profit dollars grew year over year actually increased—from 61% in 2007 to 66% in 2016. Blow me over with a feather.
This is as good a way as any to end the week. Happy Friday!