HME Summit: A hallmark moment
Rick Glass is presenting the annual HME News/Steven Richards & Associates Financial Benchmarking Survey, along with provider Scott Lloyd, of Extrakare.
The poll had 186 respondents, 64% of whom are HME providers. 56% of companies have less than 20 employees, 71% have more than $5million in revenue, 48% have less than $2million, and 50% have only one location.
stayed the same: 21%
increased 1-10%: 31.2%
Revenues per employee has mostly decreased over the past three years. For example, RTs were nearly $2million in 2008. In 2010, that number dropped to just under $1.6million. The only position that increased? Delivery techs.
"Revenue per employee numbers are disappointing," says Glass.
"It should be increasing per employee," agrees Lloyd.
32% of providers in 2010 didn't do any sleep, compared to 24% in 2009.
CPAP compliance rules implemented in 2008 may have bumped some providers from the market, says Lloyd.
No big surprise here: Retail sales are right behind sleep as the fastest growing product line.
Industry is not looking healthy as it heads toward more reimbursement cuts.
Glass: "More people are showing increased profits as a % of revenue. Many providers showing a slim 8% to 10% profit margin."
Downsizing: 45% of providers did not downsize, but of those who did, abut 45% of downsizing was on delivery techs, about 32% for both CSR and billing, and about 26% RTs.
This is just a tease of all the information available in this annual report.