WATERLOO, IA – When Alan Morris (pictured right) convened an educational session at Medtrade about Bringing Value To Referral Sources, the topic resonated as evidenced by standing-room only attendance. Clearly the issue struck a nerve with attendees.
“The subject matter was forward-looking and outside of the typical DME box,” said Morris, who serves as vice president of Strategy at VGM. “It speaks to what’s going on across the broader healthcare ecosystem. A passion of mine is elevating DMEs within the healthcare ecosystem. People are ready to look forward and think bigger.”
DMEs looking for more referrals need to focus on the message, but what is the right message? Medtrade Monday sat down with Morris to learn more about how providers can add value.
Medtrade Monday: What is the overall situation with regard to referral entities?
Morris: There has been an evolution in how hospitals, physicians, skilled nursing facilities, and home health agencies are paid and how they look at healthcare delivery.
Medtrade Monday: How should DMEs formulate their message to referral sources?
Morris: DMEs need to formulate their message in a manner that aligns with how those referring entities are compensated. It’s a matter of explaining how a DME’s suite of products and services help to keep patients out of the hospital after a hospital discharge. Reducing hospital readmissions, reducing emergency department visits, reducing skilled nursing facility days, and getting patients out of the hospital early are all valued by these referral sources.
Those entities are paid in a way that their dollars fluctuate based on their ability to produce positive outcomes and control health care costs—all while driving patient satisfaction. Hospitals are incentivized to reduce emergency visits, reduce readmissions, and reduce inpatient stays.
DMEs can go into those hospitals present themselves as a competitive differentiator. They can talk about how their products and services can reduce readmissions by 10%, for example, based on actual data. By telling the hospital that you’re reducing readmissions, hospitals can the dots and apply that data to their value-based care, accountable care, and value-based purchasing agreements that they’ve got in place. It’s about messaging in a way that resonates.
Medtrade Monday: Please talk a bit more about that crucial message.
Morris: The message to referral sources does not need to be complicated. It’s about presenting data and facts. This could be data you’re collecting from your enterprise resource platform or your billing software. It could be data you’re getting from the manufacturers of devices that you are using.
The data should demonstrate that your company, and the products and services that you deliver, are producing positive patient outcomes—outcomes that show you are keeping patients home longer—enabling hospitals to send patients home sooner, and keeping patients out of the emergency departments. These outcomes should enable skilled nursing facilities to get patients home sooner if possible. Go to referral sources and say, ‘Here’s some data that demonstrates that we are doing a good job of keeping patients happier, healthier, and in the home.’ Most of these entities are part of some sort of value-based agreement, potentially an accountable care organization (ACO).
Medtrade Monday: Any tips for making the pitch?
Morris: When you are going in to talk with one of these folks and you are showing data that proves you are doing a good job, you can also speak to why it matters to them. You can say to the SNF that you know that they have incentives in front of them from the payors and ACOs that they are aligned with to reduce SNF days, or to reduce hospital readmissions from the SNFs. You are supporting their efforts by aligning your products and services with what they are incentivized to do.
Medtrade Monday: How receptive are referral sources to the DME value proposition?
Morris: Value-based care and all of the different types of payment models that role up into value-based care get talked about a lot and it’s high on payors’ radars and health systems’ radars. We are still at a very immature place in our ability to successfully achieve true value-based care.
Medtrade Monday: What are the main challenges faced by referral sources?
Morris: Hospitals, doctors, SNFs, and home health are all trying to figure out how to improve patient outcomes while achieving improved patient satisfaction and reducing health care costs. They are doing their best to figure it out, but they do not have it all figured out. We are not at a mature state.
Medtrade Monday: Are DMEs able to work with referral sources during the formation of value-based agreements and policies?
Morris: I’ve heard on many occasions that DMEs are locked out of these types of agreements or that referral sources don’t come to them looking for support for accountable care. The reality is that the referring entities don’t have it figured out and would be receptive to anyone walking in the door and presenting solutions to their challenges. These referring entities don’t know what they don’t know.
If a DME can speak a language that resonates with them and present solutions, even if it’s a solution to a problem that they didn’t realize they had, referral sources will be receptive and have all the motivation in the world to steer referrals in the direction of the DME—because DMEs can help them achieve their intended outcomes.
