Providers ‘trailblaze’ new path for POCs

YARMOUTH, Maine – While portable oxygen concentrators (POCs) have been around for a few decades, direct-to-consumer advertising, lower startup costs and easier-to-use technology mean the devices are a more viable addition to a provider’s inventory than ever before, says Doug Francis, president and CEO of Rhythm Healthcare. He recently joined the HME News in 10 podcast to talk about what he’s seeing in the marketplace – and share his thoughts on what makes for a “trailblazer.” 

Technology keeps improving 

While equipment costs are decreasing and things like risk-free replacement warranties are encouraging DME providers to make the leap, clinicians are recognizing the benefits too, says Francis. 

“A respiratory therapist told me that the greatest advancement that he had seen is that now the patient has access to a 1,400 ML, sub 5-pound over the shoulder portable oxygen concentrator,” he said. “What that means is patients that are later stage who may be higher liter flows that historically haven't been able to tolerate or benefit from POCs now have the opportunity to benefit (from that) innovation and I think we'll see more of that as the technology improves.” 

The pain of the same 

Francis doesn’t believe that there is a systemic barrier to increased adoption of POCs, so much as DME providers not feeling any urgency to change their business models 

“It is simply that the pain of the same has not become greater than the pain of change,” he says. “Staying where you are is OK as long as reimbursement doesn't go down and as long as inflation is transitory and it goes down, but we're seeing that both of those things aren't true. We have an announcement of a new round of competitive bidding coming. You are already strapped, but it feels like that's coming and inflation (isn’t) transitory at all. Inflation is going up, (and so are) fuel costs and labor costs and the cost to operate your business and so on. We're starting to see providers embrace the idea of change, so I think that's the big systemic issue that we're dealing with is that just getting providers to recognize that we are at this tipping point and that the time to embrace the technology is now.” 

Trailblazing into new revenue opportunities  

While change – and the cost of upfront investments – can be daunting, those who forge ahead find it pays off, says Francis. 

“When (DME providers) commit to both the category of portable oxygen concentrators and then take the time to educate their commercial team on the benefits that the patient will receive, and then they go out and tell that story to the referral sources, they're seeing 30 %-plus increase in respiratory referrals,” he said. “In essence, (they are) winning a disproportionate share of the market by differentiating their business against other providers that might be telling a story like we care for the patient more than anybody else or we'll get the patient out of the hospital faster than anybody else, etc. so they're really setting themselves apart” 

Making a difference in patients’ lives 

Frances counts himself fortunate that he gets to hear firsthand how POC’s change lives, he says. 

“We get to hear about this from the patient who will reach out to us unsolicited to tell us how their life has improved,” he said. “We get these heartfelt stories, like a gentleman in Colorado, a younger person with impaired lung function that had a lifestyle that he wanted to return to, but he resigned himself to this idea that he wouldn't. He's a climber, he hikes, he's in Colorado. He wants to go away for prolonged periods of time and he'd never been able to do it until he found a portable oxygen concentrator that worked.