VGM Playbook: Forecasting 2022
Table of Contents Letter From the President.......................................................................... page 4 Clint Geffert, President, VGM & Associates
INDUSTRY OUTLOOK Trends, Opportunities, and Challenges in 2022................................. page 5 Mike Mallaro, CEO, VGM Group, Inc.
Forecasting: The Key to Peace of Mind................................................. page 8 Karryn Zarife, Director of HME Sales Operations, Compass Health Brands
Do You Want Fries With That? Adapting to Home Health Market Growth...........................................page 10 Mike Isaacson, SVP, Business Development, VGM & Associates
Forecasting the 2022 Insurance Market: How Businesses Should Respond..........................................................page 12 Rachel Harris, Director, Marketing, VGM Insurance Services
SUPPLY CHAIN AND PRODUCT FULFILLMENT Navigating Supply Chain Disruptions...................................................page 16 Craig Douglas, VP, Payer and Member Relations, VGM Government Relations
McKesson Medical-Surgical: Supply Outlook With Operational Updates.........................................page 19 McKesson
New Logistics in Product Fulfillment.................................................... page 23
Jonathan West, Director, Procurement, VGM Fulfillment
VGM Playbook: Forecasting 2022
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Table of Contents continued... REIMBURSEMENT, LEGISLATION, AND COMPLIANCE Reimbursement Landscape in 2022..................................................... page 26 Ronda Buhrmester, Senior Director, Payer Relations and Reimbursement, VGM Government Relations
Complex Rehab Reimbursement Forecast......................................... page 29 Dan Fedor, Director, Reimbursement and Education, U.S. Rehab
The Return of the RACs............................................................................ page 30 Wayne H. van Halem, AHFI, CFE, President, The van Halem Group
Once More Unto the Breach, Dear Friends........................................ page 33 John Gallagher, VP, VGM Government Relations
TECHNOLOGY, DATA, AND SECURITY Why Hasn’t E-Prescribing of DME Taken Off?................................... page 36 Ken Hodel, VP, Product Development, DMEscripts
Forecasting Your Cybersecurity Risk.................................................... page 38 Jay Bracken, CISSP, Information Security Officer, VGM Group, Inc.
Using Data to Hit the Right Sales Targets at DASCO Home Medical Equipment.........................................................page 41 Jill Cisco, Sales Manager, DASCO HME
Digital Trends and Customer Experience: Customer Database Is King..................................................................... page 43
Lindy Tentinger, President, VGM Forbin
WORKFORCE TRENDS Help Wanted: Combating Employee Shortages................................ page 48 Brooke Kraft, Senior Talent Acquisition Specialist, VGM Group, Inc.
Remote vs. In-person: Is the Hybrid Workplace Here to Stay?......page 51 Paul DiMarco, APTD, VP, Organizational Development, VGM Group, Inc.
Employees and Their Mental Health.................................................... page 54
Katie Morris, Director, Employee Benefits, VGM Group, Inc. VGM Playbook: Forecasting 2022
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Letter From the President I believe it is healthy to reflect on the year and see where we’ve been and what we might have in store for the coming year. I believe it is fair to say that homecare providers have had to rapidly adapt to a new normal shaped by a pandemic that has impacted providers and patients to the very core. As we look ahead, there are many things to consider and analyze to better understand how we as an industry should address or respond to emergencies and change. How we respond to these issues will shape our future and our ability to navigate from recovering to thriving in the postpandemic new normal. “VGM Playbook: Forecasting 2022” contains insight from industry experts on topics including general forecasting of 2022, supply chain disruption, reimbursement, legislation, data, home health, changing employee landscape, e-commerce, IT updates, and more. As we begin the new year, one thing is certain: innovation. The industry will have to navigate and determine how to manage profitability while transitioning from traditional care to virtual care, weaving in digital tools that improve consumer and clinician relationships. VGM is here so we can face it together—to learn, grow, and prosper. Thank you for being part of the VGM family that helps, supports, and strives to be better together. We look forward to continuing to provide resources and solutions for your business in 2022. Together, we are part of something bigger. Kindest regards,
Clint Geffert, President VGM & Associates
Clint.Geffert@vgm.com 319.874.6990 office 281.734.3391 cell Follow me on LinkedIn.
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Trends, Opportunities, and Challenges in 2022 By Mike Mallaro, CEO, VGM Group, Inc.
M
y DMEPOS forecast for 2022 is bullish. Despite the pandemic, supply chain disruption, inflation, the great resignation, and recalls, DME businesses have fared very well over the past couple years. I see organic growth in the 6% to 8% range across the industry for 2022. Growth should be overweight in the back half of the year as supply chain issues are worked through and pandemic issues subside (hopefully).
6% 8% Organic growth in the to
range across the industry for 2022
Below are the noteworthy Pagetrends 10 I see creating opportunities and challenges in 2022.
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Our world has changed forever. You have to change too. Contact-free is customer preferred, and we need to respond.
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Contact-Free
A majority of Americans prefers to conduct their business in a contact-free manner. A subset of that majority strongly prefers contact-free. No, they don’t actually want to come to your showroom or your CPAP clinic. It’s not rocket science, folks. Just look around at grocery stores, meal delivery, and shopping malls. You’re not different. Our world has changed forever. You have to change too. Contact-free is customer preferred, and we need to respond. Luckily, contactfree fits many parts of our business pretty well. 2022 Action Item: Evaluate each contact point required by customers, and seek an alternative process to offer it as a contact-free interaction. That includes shipping items like CPAPs directly to patients’ homes. When doing this exercise, channel the old Arnold Palmer Invacare ads—Yes You Can! VGM Playbook: Forecasting 2022
Increasing Chatter of New Models The dream of new models transforming healthcare has been alive for many years. New models do emerge, and certainly the pandemic ignited contact-free and home-centric models in healthcare. The next few years will bring emergence of alternative models that impact home-centric healthcare. But a word of caution. The ACA became law in 2010 and with it the much-ballyhooed conversion to new models built around value-based reimbursement. More than a decade later, the portion of healthcare reimbursement dollars paid on value-based criteria is only about 5%. Change happens, but foundational change in healthcare always happens more slowly than one might think.
More than a decade later, the portion of healthcare reimbursement dollars paid on value-based criteria is only about
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2022 Action Item: Be alert to emerging models where you could potentially add value, and seek to build relationships and connectivity to those.
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Devising ways to improve your customer experience makes you a better organization—and it will increase your revenues.
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Customer Experience The slow march toward more consumerism in healthcare continues in 2022. Many of the alternative models emerging are partially based on addressing the unfavorable customer experience that often exists today. Devising ways to improve your customer experience in the continuum in which you operate makes you a better organization—and it will increase your revenues, albeit more slowly than you’d like. Trends, Opportunities, and Challenges in 2022 | 5
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Trends, Opportunities, and Challenges in 2022 By Mike Mallaro, CEO, VGM Group, Inc.
2022 Action Item: Map out the points of customer friction required to do business with you. Endeavor to eliminate 10% of the friction points and improve another 30% of them in 2022. Then re-imagine other ways to enhance the customer experience. IT Security While this has been a risk area and pain point for several years, I anticipate an uptick this year. Cybercrime activity continues to rise, and providers are wise to shore up security around patient and payment data for which they are responsible. Healthcare providers possess, directly or indirectly, loads of personal data on patients, and that data is valuable to hackers. DMEs get hacked and/ or ransomed all the time. Over half of American businesses have been victims of extortion via cyberbreaches, with lost time being an even larger cost than the ransom paid. An element of IT security that I think accelerates at a high rate in 2022 is the practice of third parties (think health payers or cyber-insurers) requiring you to complete security requirements questionnaires, and pass their requirements, as a condition of doing business. This activity was becoming more common in DME in 2019. The pandemic put much of it on hold. It comes roaring back in 2022.
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Prepare to meet additional security requirements—or risk losing contracts and cyber-insurance policies.
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Prepare to spend more time on these checklists. But more importantly, prepare to meet additional security requirements in order to reach a passing level—or risk losing contracts and cyber insurance policies.
VGM Playbook: Forecasting 2022
2022 Action Item: Create an IT security risk assessment on your organization, including on thirdparty vendors with whom you rely for IT security and operations, along with a tangible plan for mitigation of elevated risks identified. You won’t need to be perfect to pass all the questionnaires, but you will be better off if you have a plan on how you’re getting to a satisfactory risk level. And it helps you prepare for what’s coming. Utilization of Data A wise Georgian once told me, “Mike, fish where the fish are.” Most of the time the answers are in the data, and we get to the answer much faster by casting our line there. Utilize data to find business (referrals) you’re missing, to understand fair pricing, to identify the snags with payers, to assess your CPAP program’s effectiveness, your employee engagement, and more. 2022 Action Item: Endeavor to be more data-driven in 2022 and you’ll be a better leader and have a higher performing organization.
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As employers, we must understand and adjust to the changing attitudes of workers toward work.
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Evolving Labor Markets The labor market was disrupted in 2021, with higher levels of resignation than ever before and an unusually low volume of viable prospects for new employment. You also faced a widespread feeling of languish among the working population and growing disengagement felt toward work and employers. I believe these things will trend slightly better in 2022 on their own. But as employers, we must understand and adjust to the changing attitudes of workers toward work.
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Trends, Opportunities, and Challenges in 2022 By Mike Mallaro, CEO, VGM Group, Inc.
2022 Action Item: Focus on recognition and belonging. Recognizing employee efforts, commitment, and successes are low cost (actually, it’s usually free!). Don’t just intend to do better on that front—rather, implement a process to boost the amount of positive feedback, thank yous, and recognition felt by employees in your organization. Processes that are authentic, self-sustaining, and public are best. And make sure you’re doing the big and little things to make people who work in your organization feel that they belong. Group identity is powerful, and it can be used to your advantage—if you’re thoughtful about building it. Consolidation There is a tremendous amount of capital in the mergers and acquisitions space and that, coupled with advantages of scale and investor demand for growth, will continue the industry consolidation through 2022 (and well beyond). That being said, it’s very hard for me to believe your business is going to be worth less in three years than it is today, so consider that when contemplating offers that come your way. 2022 Action Item: Stay focused on your business, and its fundamentals. Protect the business that you have, add new revenues each period, control expenses, build in smart technology solutions, and lead strongly in your office, in your community, and in your industry. This will keep you and your business thriving despite any other activity around you.
VGM Playbook: Forecasting 2022
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Stay focused, keep improving, have fun, and you’re going to thrive in 2022.
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The Future Is Bright I forecast this to be your best year yet—how’s that for optimism! The world keeps changing. There are bad days, as well as good. But remember, you’re doing meaningful work, and you’re making a difference. Stay focused, keep improving, have fun, and you’re going to thrive in 2022. ABOUT THE AUTHOR Mike Mallaro, CEO, VGM Group, Inc. Mike Mallaro is CEO of VGM Group, Inc. where he led the development of the employee stock ownership plan (ESOP). He began his tenure at VGM in 2001, serving as CFO until becoming CEO in 2016. Prior to VGM, he was CFO of a regional off-price retailer. He also spent 12 years as a CPA in an international accounting firm. During Mike’s tenure, VGM has consistently ranked as a Top Workplace in Iowa. In 2019, he received the Leadership Award for Large Employers from Iowa Top Workplaces, an award based on employee responses to the survey. Mike frequently speaks at regional and national conferences on topics including healthcare trends, financial benchmarks, business plan optimization, and strategic growth. He holds a B.B.A in accounting from the University of Iowa as well as CPA (inactive) and CMA designations. Connect with Mike on LinkedIn or email him at Mike.Mallaro@vgm.com.
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Forecasting: The Key to Peace of Mind
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By Karryn Zarife, Director of HME Sales Operations, Compass Health Brands
At the end of each transaction is a person. Their quality of life directly depends on getting the right product at the right time.
A
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s each of us get bogged down in the day-to-day machinations of product in and product out, it is important to take stock and remember that at the end of each transaction is a person. A person in need of the products and services we provide. That need is timely—needed right when it is needed. Their quality of life is directly dependent on getting the right product at the right time. That person and their need is what drives us all. It is what makes us passionate about what we manufacture, distribute, and sell. Getting it right takes tremendous effort and partnership between vendor and provider.
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Supply chain challenges have shined a light on the need for better communication between manufacturer and provider.
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Historical Data and Market Insight At its core, forecasting is combining historical data with market insight to determine the direction of future trends. Estimates based off these trends can then be utilized to determine how much inventory to purchase over a specific amount of time. Forecasting is done to ensure the right balance of inventory that will sustain current business plus known growth opportunities.
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While excess inventory is a cost concern, backordered inventory is equally costly.
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Inventory costs are commonly known as one of the highest operational costs in an organization, and it is typical for a company to strive to limit excess inventory. Accurate forecasting is a paramount piece of this process. It is impossible to keep manageable levels without it. Separately, forecasting prevents backorders. While excess inventory is a cost concern, backordered inventory is equally costly for the vendor but also impacts the dealer, and most importantly—the patient.
Supply Chain Disruptions For the past several months, the supply chain disruptions have caused us all to experience what it is like to not have plentiful inventory on key products. Demand fluctuations coming out of the pandemic combined with labor challenges at every stage of the procurement process have led to dramatically long lead times and general uncertainty about when products will be available for patients. This massive disruption has resulted in skyrocketing costs, empty shelves, and suffering for the patient at the end of the line. These challenges have also shined a light on the need for better communication in both directions between manufacturer and provider. Manufacturers need to understand the needs of their customers and work together to anticipate changes to those needs. Forecasting is at the root of this communication. It makes backorders preventable in normal circumstances and allows for the best possible management during times of crisis. VGM Playbook: Forecasting 2022
In most cases of overseas production, the timeline is as many as
4 months
Page 13 Forecasting is a market-backed process that strives to predict and manage time. It begins with when the product is needed by the patient and works its way back through multiple stages of delivery, warehousing, shipping, and manufacturing. In most cases of overseas production, the timeline is as many as four months. It is vital for a vendor to fully understand the business of the dealer—including their current needs and expected growth opportunities—to effectively navigate the months-long process of building, shipping, receiving, and delivering a consistent flow of products. Forecasting: The Key to Peace of Mind | 8
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Forecasting: The Key to Peace of Mind By Karryn Zarife, Director of HME Sales Operations, Compass Health Brands
The process is fluid and never-ending. The ebb and flow of demand needs to be monitored, validated, and acted upon to ensure a consistent and predictable flow of product that is aligned with the needs of the provider patient base. Communicate With Vendors The recent supply chain challenges have made forecasting extremely difficult. Historical data is valuable but becomes essentially irrelevant in this turbulent environment where dealers are purchasing from anywhere product can be obtained. Dealers and distributors have been forced to decrease their loyalty to specific vendors and put their eggs in many more baskets. This is bringing new business to some vendors, while decreasing sales with others. The in and out of stock from vendors disrupts the trend analysis and makes predicting the future need muddy at best. Despite it being difficult, forecasting from a dealer perspective has never been more crucial. Any forecasting information a vendor receives from dealer partners is vital. It contributes to the ability to have a more accurate estimate and plan for future inventory needs. It allows the vendor to better prioritize the manufacturing and shipping of multiple products— aimed at serving key customers more effectively during tough times.
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It is important to be open about your commitment to a vendor and provide any forecasting insights.
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Work to share information with your vendor partners now to build a strong forecast for the new year.
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Providing for Patients As we look back on 2021, planning for 2022 needs to be in full force. Working to share information with your vendor partners now to build a strong forecast for the new year will provide peace of mind that you’ll be able to provide exactly what the person at the end of each transaction needs—when they need it.
ABOUT THE AUTHOR Karryn Zarife, Director of HME Sales Operations, Compass Health Brands Karryn joined the company in 2011 as an inside sales rep and has held roles leading the Customer Service and Inside Sales departments. In her role as Director of HME Sales Operations, Karryn leads the demand forecast process and coordinates across departments to ensure accurate and consistent flow of data to best support the Compass network of dealers through product availability. Karryn holds a degree in Business Administration from Baldwin Wallace University.
As a dealer or distributor, it is important to be open about your commitment to a vendor and provide any forecasting insights. The vendors are aware of the need to diversify your purchasing and the good ones will be comfortable with it. Communicating the size of their partnership will ensure they hold up their end of the bargain.
VGM Playbook: Forecasting 2022
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Do You Want Fries With That? Adapting to Home Health Market Growth By Mike Isaacson, SVP, Business Development, VGM & Associates
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A
nyone working in the healthcare field over the past 18 months deserves our thanks … if not a medal! While we have always understood the important role that home health plays in the healthcare continuum, this past year and a half has raised the bar for all of the healthcare work, but nowhere as impactfully as in the home healthcare segment.
To be fair, more and more people were choosing to remain in their homes to receive care before the COVID-19 pandemic rolled in. However, as nursing homes and other long-term care facilities were forced to close their doors to outside visitors, even more individuals and families were looking for options for at-home care. This burgeoning migration to in-home health is the force behind the projected growth of the industry from its current $181.9 billion to over $247 billion in 2025. Page 10 Projected growth of the industry from its current billion to over
Skilled nursing facilities saw their census drop to their lowest numbers (lower than
nationally)
since data started being collected
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Page 16 We must embrace the opportunity to be creative and forward-thinking to remain relevant.
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I Want Fries With That billion in
As mentioned, the pandemic shined a light on the desire, and even need, for people to seek healthcare in their homes. While this was the highlight, the trend to homecare has been growing for many years. More and more people are demanding options for their long-term care needs as well as their rest and recovery environment. According to Centers for Medicare and Medicaid Services (CMS), skilled nursing facilities saw their census drop to their lowest numbers (lower than 80% nationally) since data started being collected. Some reporting shows since January 2021 that number has ticked up slightly due to vaccine availability, however, it is not believed numbers will return to pre-COVID levels. VGM Playbook: Forecasting 2022
Personal choice in healthcare and healthcare settings is a demand that is testing the limits, innovations, and in some cases the patience of the home health industry. To adapt to the demand, we must be able to shift and overcome a long history of the traditional healthcare model. As healthcare consumers become more knowledgeable of their options, and gain access to more information than ever before, we must embrace the opportunity to be creative and forwardthinking to remain relevant. There is no more “one size fits all” model to be followed. While treatment modalities are changing and patient needs, wants, and desires are becoming more sophisticated, the need to look at each person as an individual and NOT a healthcare plan is paramount. There is opportunity in this approach—if we take advantage of providing services to the whole patient. So, where should we be looking?
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Do You Want Fries With That? Adapting to Home Health Market Growth By Mike Isaacson, SVP, Business Development, VGM & Associates
5 Opportunities to Explore
Get Engaged or Fall Behind
1. Telehealth – This trend during the pandemic is not going away. It may change or morph as we leave the PHE in the rearview, but the genie is out of the bottle on this advancement. How can you engage and utilize telehealth to your advantage?
At the end of the day, each of us needs to take a look at our operating models and our engagement with patients, referral sources, and payers. There are a lot of opportunities continuing to come our way as the trend to home-based care continues to grow. Indeed, the train has already pulled out of the station. It’s not too late to catch up, but in order to do so we MUST embrace the changing consumer needs and adapt our way of doing business to meet the demand of today’s healthcare consumer.
2. Remote patient monitoring (RPM) – Gaining in popularity every day, this trend allows for more patient engagement, more independent consumers, and more trackable outcomes. 3. Speaking of outcomes – How are you tracking your product/service efficacy and efficiency? More importantly, how are you using the data to continuously improve, adapt, and market your services to the individuals, referral sources, and payers? 4. Ease of use – Technology is creating efficiency in many aspects of life. People want a clean and easy user experience and are demanding that experience in all facets of their life. Are you easy to find, easy to schedule, pay, and work with? What is your online presence, and how are you ensuring you are the product/service of choice? 5. Get closer partners – We must engage our partners in healthcare in an intentional and meaningful way. The home health nursing agency down the street is always looking for products and supplies. The consumer and their families are online looking for support, and doctors and facilities are looking to partner with entities that can expand their reach into the homes and improve patient outcomes. Are you their go-to call?
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It’s not too late to catch up, but in order to do so we MUST embrace the changing consumer needs.
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ABOUT THE AUTHOR Mike Isaacson, SVP, Business Development, VGM & Associates Mike oversees the continued development, growth, and enhancements of VGM & Associates communities. Working with each community leader, he seeks out additional solutions for our partners and new opportunities to improve services and supports. Prior to joining VGM & Associates, Mike was vice president of business development for VGM HOMELINK. This opportunity afforded Mike in-depth knowledge and understanding of provider pain points being met with innovation and technology. Before making his way to VGM, he spent 23 years as a state and national leader in community healthcare settings, creating services for individuals, families, and communities alike. These experiences created opportunities to develop and grow several service companies with a focus on government relations, provider relations, cross system integration, and challenging the status quo. He has a bachelor’s degree in social work and a master’s degree in public policy from the University of Northern Iowa. Connect with Mike on LinkedIn or email him at Michael.Isaacson@vgm.com. Do You Want Fries With That?... | 11
Forecasting The 2022 Insurance Market: How Businesses Should Respond By Rachel Harris, Director, Marketing, VGM Insurance Services
I
t’s been a wild ride for the insurance industry over the past two years. From the global COVID-19 pandemic to catastrophic natural disasters that will make history books, to the exponential increase of cyberattacks, and the severity of automobile accidents. Then there’s the rise of social inflation, and of course, the hard insurance market. Beyond impacting the insurance industry itself, these factors have had significant impacts on businesses purchasing insurance—a trend that will continue as we head into 2022.
While accurately predicting the future is, of course, impossible, this article will examine current insurance market trends, and provide predictive analysis from the experts at VGM Insurance as to where we see the market heading in 2022 and how business owners can prepare for what’s to come. The Hard Insurance Market...Will Remain Hard Like every market, the insurance industry fluctuates in cycles. As a business owner, understanding the difference between soft markets and hard markets in the insurance world can help you better prepare and protect your organization when the cycle swings in a new direction. When the market is soft, insurance premiums remain stable. Insurance companies offer broader coverage and have a higher capacity for risk. During a soft market, companies will often compete over new business to a buyer’s advantage.
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]
We saw a true hard market throughout 2020 and 2021, with expectations it will continue into 2022.
On the other hand, a hard market drives premiums up. Catastrophic losses, high claims costs, and low interest rates all contribute to market hardening. These, and a variety of other factors, were already at play at the beginning of 2020—and that was before the COVID-19 pandemic. The combination of these factors meant we saw a true hard market throughout 2020 and 2021, with expectations it will continue into 2022. VGM Playbook: Forecasting 2022
“With less underwriting capacity and more restrictions on coverage, insurance companies are less competitive. If you’re not prepared, a hard insurance market can negatively impact your business as pricing increases and certain coverages become more difficult to obtain. But smart planning and preparation can help you minimize the effects of a hard market and successfully make it through to the other side.” Ron Green, Vice President of Underwriting, VGM Insurance Services Social Inflation Is Here to Stay In addition to the hard insurance market, another factor contributing to rising insurance premiums is social inflation—a trend that dominated 2020 and 2021, and experts say is here to stay for 2022 and beyond. Social inflation is a term used to describe increased loss costs stemming from claims far more severe than what could be anticipated under the usual scope of economic inflation and claims trends, which in turn drives up the costs of coverage. While we can’t control it, understanding what causes social inflation is the first step to protecting your business from its repercussions. Here are three major drivers of social inflation in the past decade: 3 Major Drivers of Social Inflation 1.
Distrust of big business – From policy to public sentiment, society’s general disdain for large corporations fuels more than social media rants. The result is a climate that makes it easier to sue companies and win large settlements, thereby driving up the costs of claims and coverage.
2. Increased litigation – Another impactful trend is litigation funding. In the past, high attorney fees deterred plaintiffs from pursing trials. Today, third parties can cover the costs of litigation in exchange for receiving a portion of the settlement. Litigation funding leads to more lawsuits that go farther and last longer.
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Forecasting The 2022 Insurance Market: How Businesses Should Respond By Rachel Harris, Director, Marketing, VGM Insurance Services
3. Massive verdicts – All of this adds up to the normalization of huge settlement awards by juries. As juries decide to hold businesses accountable and cultural sentiment assumes big corporations can afford anything, multimillion—or even multibillion—dollar settlements have become typical and expected. From 2015 to 2020, the median cost of a “nuclear verdict” jury award over $10 million increased by 35%, from $20 million to $27 million, according to Advisen’s loss database. Page 13
From 2015 to 2020, the median cost of a “nuclear verdict” jury award over million increased by from
$10
$20 $27
43.6%
35%
of ransomware attacks targeted firms with to employees and
101
million to
with
The Evolution of Cyber Liability Insurance For the past several years, Cyber Liability coverage has been viewed by many business owners as “nice to have” rather than “need to have.” Despite cyberattacks making headlines daily, many organizations still operated under the assumption that it would never happen to them.
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VGM Playbook: Forecasting 2022
1,000
34.7% 11 100
million
Businesses are more at risk of a cyberattack than ever before.
This is no longer the case. Businesses are more at risk of a cyberattack than ever before. Many contracts now require businesses to have Cyber Liability coverage in place, and for good reason. Across industry lines, cyberattacks have surged in frequency and sophistication, resulting in a rise in cyber losses, especially for small- to mid-sized businesses. According to Coveware, Q3 of 2021 saw 43.6% of ransomware attacks targeted at firms with 101 to 1,000 employees and 34.7% at firms with 11 to 100 employees. Page 13
]
to
firms
employees
“We are seeing massive increases in the probability of having a cyber loss, so Cyber Liability coverage is no longer optional for businesses. Due to the increased claim activity, we are seeing the cost of Cyber Liability insurance rise steadily, and it will continue to do so—particularly in industries like healthcare that have greater cyber exposures.” Lizzie Kelly, Director of Operations, VGM Insurance Services
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Forecasting The 2022 Insurance Market: How Businesses Should Respond By Rachel Harris, Director, Marketing, VGM Insurance Services
In addition to pricing increases, here are some additional trends businesses should expect when it comes to Cyber Liability insurance in 2022: Cyber Liability Insurance Trends in 2022 Coverage restrictions Businesses may encounter coverage restrictions or exclusions for losses stemming from specific types of cyber incidents, while still having more generous coverage terms for other exposures. Push for standalone policies In the midst of growing cyber risks, many standard property and liability policies have begun implementing exclusions for cyber exposures to avoid unexpected losses. As such, it’s critical for organizations that don’t already have one to seriously consider securing a standalone Cyber Liability policy. Multi-factor authentication requirements Research from both Microsoft and Google suggests that multi-factor authentication (MFA), also known as two-factor authentication or 2FA, can block over 99% of account compromise attacks. However, reports suggest that only 57% of global businesses are using MFA. As a result, most insurance carriers are now requiring MFA protection for remote network access, privileged/administrative access, and/or remote access to email. Many free and low-cost MFA options are now available, and businesses should establish this protection as soon as possible.
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Multi-factor authentication can block over
99%
of account compromise attacks
The Challenges of Business Auto Insurance Auto insurance hasn’t been profitable for insurance carriers for the past decade. This has led to premium increases, tougher renewals, and stricter policies for businesses. Unfortunately, industry experts see this VGM Playbook: Forecasting 2022
trend continuing due to a variety of factors ranging from litigation to deteriorating public roads. Here are some of the key trends continuing to drive pricing increases and coverage restrictions: Business Auto Insurance Trends in 2022 Severity of accidents Accidents are becoming more severe, and fatalities are increasing every year. According to the National Highway Traffic Safety Administration, there were over 20,000 vehicle fatalities in the first half of 2021 alone, up 18.4% over the same period in 2020, and the highest since 2006. More vehicles on the road Businesses (like yours, perhaps) added more delivery drivers and in-home services, leading to an increase in vehicles on the road, added exposure for businesses, and increased chances of claims. And the trend is forecasted to continue. The Department of Transportation estimates there will be over 290 million registered vehicles on the roads in the United States in 2022. Unsafe driving behaviors Distracted driving incidents became more prevalent. While many factors can lead to a crash, distracted driving, including eating, drinking, texting, and talking on the phone, are some of the most common causes. As a business owner, the best thing you can do to mitigate auto losses and ensure you’re able to get the coverage you need, is to manage your risk effectively. “Each company should focus on risk management strategies that help to make them an aboveaverage account for an underwriter. Do you require regular driver training? Do you have a driver safety policy in place? Do you check the Motor Vehicle Records of all new drivers you hire? Do you have documented and enforced incident and accident reporting? The more organizations take control of their risk, the more likely they are to, most importantly, secure coverage, but also control premium costs.” Ron Green, Vice President of Underwriting, VGM Insurance Services Forecasting The 2022 Insurance Market... | 14
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Forecasting The 2022 Insurance Market: How Businesses Should Respond By Rachel Harris, Director, Marketing, VGM Insurance Services
Preparing for What’s Ahead While no one can change market conditions, there are several steps you can take to reinforce and prepare your business for the 2022 trends outlined above: Steps to Take in 2022 Budget for premium increases With pricing increases expected to continue over the coming year, it’s important to be proactive when it comes to budgeting. “Planning ahead for the possibility means your business won’t be blindsided at renewal time,” said Kelly. Proactively manage your risk As mentioned above, managing your risk proactively can have a significant impact. Ensure your organization has updated and sound policies on safe driving, cybersecurity, sexual harassment, workplace violence, and other key exposures. This can go a long way toward protecting your business from claims and controlling your losses. Your insurance provider can help you with this, which in turn can help you secure more favorable quotes. Document your loss history Being able to readily explain losses to an underwriter can make the process smoother. Get the coverage you need Consider procuring Commercial Excess coverage, which provides coverage beyond the limits of your standard policies so you can be prepared in case of large lawsuits. Additionally, standalone coverage for Employment Practices Liability, Cyber Liability, and others that may not be covered by standard business policies are options worth discussing with your insurance agent or broker.
VGM Playbook: Forecasting 2022
Work with a trusted partner A solid relationship with an insurance provider who understands your unique business and the industry in which you operate can make all the difference during challenging market conditions. From reviewing and looking for gaps in your existing coverage, to providing you with a variety of options to ensure you have the most competitive quote, to providing best practices for proactively managing your risk, you’ll be in better shape with a trusted insurance adviser by your side. For additional information about 2022 insurance market trends, and to ensure your business is covered, reach out to VGM Insurance today at info@vgminsurance.com or 800-362-3363.
ABOUT THE AUTHOR Rachel Harris, Director of Marketing at VGM Insurance Services Rachel has been part of the VGM family for nearly a decade, working with both the VGM & Associates and VGM Marketing teams prior to joining VGM Insurance in 2016. In her current role, Rachel works closely with internal sales and marketing teams on all aspects of the strategic marketing and branding strategy for the organization. Rachel currently serves as the chair of the Insurance Marketing & Communications Association (IMCA) board of directors, and is a graduate of Massey University in Wellington, New Zealand. Connect with her at Rachel.Harris@vgm.com or follow her on LinkedIn.
Forecasting The 2022 Insurance Market... | 15
Navigating Supply Chain Disruptions By Craig Douglas, VP, Payer and Member Relations, VGM Government Relations
S
ince the onset of COVID-19, there have been challenges facing DME/HME providers, not the least of which was a sharp increase in costs pertaining to several facets of their business. Acquisition costs for many products have been rising steadily in the form of incremental price increases. Fuel costs, delivery vehicle costs, and labor costs have also been on the rise. Hiring and retaining qualified and reliable staff has proven difficult for many industries, and the healthcare and DME industries are no exception. In a recent poll conducted by VGM, providers indicated they have been experiencing increases in delivery costs of between 19% and 43% this year, depending on the region. Page 16
19% 43%
Increases in delivery costs of between and
this year
Costs Increase Across the Continuum Suppliers are not the only companies experiencing increased costs in the industry. Manufacturers are also experiencing many of the same cost increases. The increased costs for the manufacturers are primarily attributed to their own rising costs of the raw materials used to manufacture their products—aluminum, steel, nickel, copper, PVC, etc., are all experiencing doubledigit cost increases of up to 40%. Manufacturers are also experiencing spikes in labor costs and a sharp rise in shipping costs, especially from overseas.
Page 16
Raw materials used to manufacture products are all experiencing double-digit cost increases of up to
VGM Playbook: Forecasting 2022
According to Cass Information Systems, a company that tracks and trends several freight related costs, they expect a 34% overall increase for their Cass Freight Index (Expenditures) during 2021. That same index was flat in 2019 and actually decreased by 7% in 2020. Little did they know, at that time they were on the precipice of an unprecedented storm. From a shipping cost perspective, the cost to bring products from overseas has skyrocketed throughout 2021. Companies are paying upwards of $25,000 to $30,000 per shipping container compared to just $3,000 to $4,000 in 2020. Page 16
$25,000 to $30,000
per shipping container compared to just to
$3,000 $4,000 in 2020
Page 30containers that enter More than 40% of all shipping the U.S. come from China, which is also home to seven of the 10 largest ports in the world. During the pandemic, when much of the world was on lockdown, a large percentage of the world’s population was unable to go out and spend their money on anything other than the bare necessities. Discretionary spending was stymied for several months. A few months later, the ports began to clog up with shipping containers and there weren’t enough workers available to help offload the backlog. There are many DME/HME products sold in the U.S. that are manufactured in countries such as China, Taiwan, Vietnam, and Korea. Fully loaded container ships from those countries are being forced to wait in line at U.S. ports. As recently as October, there were over 70 ships idling at sea waiting their turn at the port of Long Beach, Calif., alone, as well as several more ships doing the same at other U.S. ports. The ships can idle at sea for 7 to 10 days, and on top of that, could wait another 1 to 2 weeks to be fully unloaded.
Navigating Supply Chain Disruptions | 16
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Navigating Supply Chain Disruptions By Craig Douglas, VP, Payer and Member Relations, VGM Government Relations
A Full-Blown Shipping Crisis There have been other events that have further contributed to the shipping crisis. Earlier in 2021, a massive cargo ship was stranded in the Suez Canal, causing many ships to either wait for it to clear or be re-routed or even delayed from being launched. China’s two largest ports have both experienced shutdowns due to COVID-19. Simply getting the ships to land at a port in the U.S. isn’t the end of the delays. Getting the containers off the ships and to their final destination is often a task carried out by our railroad and trucking transportation companies. Those companies have not been immune to COVIDrelated issues, either. Union Pacific Railroad, a major U.S. railroad system, earlier suspended all container movements from the West Coast for one week, and BNSF, another massive U.S. railway carrier, also had to cut back on routes for two weeks in July to relieve backlogs. The availability of truck drivers is also at its lowest point in over three years, with roughly 200,000 fewer drivers available as 17 compared to previous years. Page
fewer drivers available as compared to previous years
of surcharges is of greater significance due to the breadth and depth of the product lines impacted. It is estimated that the manufacturers who have recently imposed surcharges represent approximately 65% of the total market for some of the product categories. The surcharges aren’t coming from just one or two manufacturers, nor are they impacting just one or two product lines. They involve a growing list of several major manufacturers and distributors, and they impact dozens of product lines, many of which are highvolume products such as wheelchairs, hospital beds, walkers, and lift chairs.
[
]
In some cases, the dollar amount of the surcharge alone exceeds the current reimbursement from Medicare for that item itself.
Many of the surcharges are in the 20% to 30% range of the price of the product, and in some cases, the dollar amount of the surcharge alone exceeds the current reimbursement from Medicare for that item itself. In other industries, when a surcharge or price increase is incurred, the cost is usually passed on to the end user purchasing that product. In this case, the DME supplier is incurring the increased costs but is unable to pass those additional costs on to the Medicare beneficiary due to the fee schedules being, for the most part, fixed. Relief for Providers
These major delays and shipping cost increases are causing the manufacturers to pass along their higher costs to their customers in the form of either price increases or surcharges. Recently, several major manufacturers of DME have announced surcharges that have already been implemented or will be implemented within the coming weeks and months. The DME supplier community cannot simply absorb these price increases and continue to provide products to the patients they serve.
While some legislation has been passed to date in response to COVID-19, which has provided some financial relief to providers in the form of forgivable loans or grants—primarily through the Paycheck Protection Program (PPP) and the HHS Provider Relief Fund (PRF)—it will not be enough long-term relief to offset the additional costs for most providers. Those programs were intended to keep businesses afloat and cover pandemic-related costs and lost revenues that happened primarily in 2020, before many of these recent surcharges and other cost increases were handed down.
These are not the first surcharges since the pandemic began and likely will not be the last. This latest round
Reimbursement rates from CMS and many private payers were, and still are, based on pre-pandemic
VGM Playbook: Forecasting 2022
Navigating Supply Chain Disruptions | 17
continued...
Navigating Supply Chain Disruptions By Craig Douglas, VP, Payer and Member Relations, VGM Government Relations
demand and cost structure. Those rates are not The temporary rate increases from CMS in the form of reflective of, or sustainable in, today’s market. As 75/25 blended rates referenced above are scheduled evidenced above, the COVID-19 pandemic continues to end once the COVID-19 public health emergency to disrupt the supply chain for several key medical (PHE) is declared over. Some of the supply chain equipment and supply categories. When you factor in issues will almost certainly outlast the PHE, which all the additional costs brought about by the pandemic, means the increased costs will remain when the none of which will likely disappear immediately once increased reimbursement ends and reverts to lower the PHE is declared over, it is clear that reimbursement reimbursement rates. VGM will continue to advocate rates need to be increased on a more permanent for more positive reimbursement changes on behalf of basis. The supply chain issues are expected to last and alongside you. until at least mid-2022, and some have projected they VGM Is Here to Help could last into 2023. We have seen some upward movement on reimbursement rates for certain products from Medicare (75/25 blended rates for providers in nonrural/non-CBAs) and from certain state Medicaid departments to offset some of the pandemic-related rising costs. Those pricing adjustments from payers or from CMS don’t typically happen automatically. Payers must see a true need for it, and the payers need to be educated as to what is happening and what it means to them and their covered lives or beneficiaries. If they don’t hear from providers, they assume all is well.
[
If you as a provider are being impacted negatively by these cost increases, you need to be engaging with your payers.
]
If you as a provider are being impacted negatively by these cost increases, you need to be engaging with the payers you do business with to tell them what is happening and what needs to happen for you to be able to continue providing the products and services that your patients, their members, rely on to best manage their care at home. Without those conversations, the necessary changes, temporary or permanent, will likely not happen.
[
Some supply chain issues will outlast the PHE, which means the increased costs will remain when the increased reimbursement ends.
VGM Playbook: Forecasting 2022
]
From a product sourcing perspective, VGM continues to monitor the supply chain disruptions and look for opportunities with vendor partners that can help alleviate some of the supply chain stress for impacted product lines. We are also helping to match suppliers who are short on certain types of equipment with other suppliers who may have a few extra items on hand in those same product categories. We recognize the value of what you do every day, and we will do everything we can to make sure you can continue to do that great work. #TogetherWeWill. ABOUT THE AUTHOR Craig Douglas, Vice President of Payer and Member Relations at VGM Government Relations Craig has nearly two decades of experience working with payers and providers. In his current role, Craig assists in navigating payer relationships and addressing concerns that impact VGM’s membership. Prior to joining VGM & Associates, he was vice president of provider relations at VGM HOMELINK. His responsibilities included provider onboarding, oversight of network adequacy for the payer partners and patients for whom care was coordinated, and building and fostering effective, goal-driven relationships with payers and providers. You can connect with him on LinkedIn or contact him at Craig.Douglas@vgm.com. Navigating Supply Chain Disruptions | 18
McKesson Medical-Surgical: Supply Outlook With Operational Updates Provided by McKesson
C
onsumers first felt the lasting effects of COVID-19 in 2020 when they saw empty retail shelves— remember the scarcity of toilet paper and disinfectant wipes? Online orders were backordered, and the nation faced months-long wait times for new furniture and appliances to be delivered .
While some of those same realities still hold true for most of the country, things have changed even more as the supply chain continues to tighten. Today, distributors, DME/HME providers, and consumers alike are in the midst of a perfect storm in the supply chain driven by three issues that are occurring at the same time—labor shortages, unusual summer volumes, and equipment shortages.
[
The country is experiencing unprecedented labor shortages as many are still reeling from pandemicrelated shutdowns.
The country is experiencing unprecedented labor shortages as many are still reeling from pandemicrelated shutdowns, and have to now staff up to meet ongoing demand. Additionally, the U.S. is seeing a truck driver shortage as new regulations, increased retirements, and equipment failures take trucks off the road at the time they are needed most. Lastly, U.S. port operations present real challenges as some of the nation’s ports simply aren’t large enough or staffed to handle the incoming volume the country is experiencing.
VGM Playbook: Forecasting 2022
Unusual summer volumes have also presented issues for the fragile supply chain. Predictability along with seasonality has always been a strength of the country’s supply chain, and one of the reasons why the U.S. has managed to stay in front of emerging trends. However, because of delayed orders, inventory shortages, and carrier capacities, the nation’s supply chain realized unusual summer volumes, with muchlarger-than-expected year-over-year volumes. This has only exacerbated supply chain gaps, which became even more prominent coming in the fall.
[ ]
Labor Shortages
“From COVID-19 factory shutdowns to drivers and port operations, labor shortages are keeping the supply chain from normalizing quickly,” said Terry Henderson, McKesson Medical-Surgical’s senior director of global procurement.
Unusual Summer Volumes
]
Last summer’s unpredictable volumes created the inventory shortages we’re seeing today.
“When there’s consistency, you can schedule when things will likely happen, and keep supplies moving as expected,” said Henderson. “However, last summer’s unpredictable volumes created the inventory shortages we’re seeing today. And the capacity is tight right now, and carriers just can’t absorb it.” Equipment Shortages The last factor creating supply chain issues are equipment shortages. Henderson said, “This isn’t a production problem. Manufacturers both domestically and overseas are making product. But because of unexpected high summer volumes, we’re seeing shipping container shortages, and now, chassis shortages, which are the wheels that move the containers from point A to point B.”
[
Products are sitting at the railroads, but there’s simply no way to get the product to its destination.
]
McKesson Medical-Surgical: Supply Outlook With Operational Updates | 19
continued...
McKesson Medical-Surgical: Supply Outlook With Operational Updates Provided by McKesson
He added, “There’s a situation emerging where the products are sitting at the railroads, but there’s simply no way to get the product to its destination; shipments are also backed up in ports.”
Henderson also said that the supply chain is seeing equipment shortages related to the actual trucks themselves. Typically shipping companies rotate their trucks after a certain number of miles. But today new trucks just aren’t available, so carriers are extending the life of their current trucks, which means an increase in repair costs and potentially even more delays related to broken down vehicles.
[
The country has been attempting to restock inventory for over 14 periods, but many are still experiencing out of stocks.
Predicting Stability
Despite the supply chain issues, there are also new realities for those who rely on the U.S. supply chain: New Supply Chain Realities
•
Increased transparency and visibility to product availability and possibly allocations
•
Government controversy over global tariffs and their role in U.S. policy
•
Pandemic disruptions of global transportation and manufacturing cause shipping delays and higher costs
•
Patient care shifts outside of the hospital’s four walls
•
Global demand for PPE and critical supplies created new strategic sourcing efforts for domestic and near-shore manufacturing
Jon Archer, McKesson Medical-Surgical’s senior manager of global transportation, said, “There were many disruptions to the supply chain during COVID-19; we saw many breaks and misses throughout the supply chain at varying levels and across the continuum.”
][
Based on data Henderson has seen, he believes the country has been attempting to restock inventory for over 14 periods, but many are still experiencing out of stocks1.
When asked what data providers should look at to predict when things may stabilize, he recommended looking at intermodal data. Intermodal activity is defined as “trains moving in the U.S. with trailers filled with product,” Henderson said.
The pandemic disruption of global transportation adds up to higher costs and longer wait times for medical supplies.
]
According to Archer, the pandemic disruption of global transportation adds up to higher costs and longer wait times for medical supplies. “Because of truck driver shortages, rail imbalances, and shipping container scarcity, we have medical goods stranded at various points, which means medical supplies can’t get where they’re needed.” Archer said.
He suggests when the country experiences another spike in intermodal activity and products ship back out and volumes begin to drop, the supply chain may not be as constrained. VGM Playbook: Forecasting 2022
McKesson Medical-Surgical: Supply Outlook With Operational Updates | 20
McKesson Medical-Surgical: Supply Outlook With Operational Updates
continued...
Provided by McKesson Good News However, there is good news. The volume of medical products moving inland and on rail continues to increase month over month as prioritization efforts have increased success, Archer said. But there’s still a major backlog of volume that makes it difficult to keep up. Because of the increase in volume, shipping containers are being resent overseas empty in a rush to rebalance levels. But if current shipping containers can’t be processed and reintroduced back into the supply chain—either at ports or inland—that means product backs up awaiting containers.
Page 21
68
Costs increase, as much as to
times pre-COVID costs, driven by container shortages and vessels stacking up in ports
Archer said that surprisingly, however, despite the larger vessel backlog, some overseas ports are only backed up about 2 to 3 days3 because they’re much larger facilities and operate 24/7 rather than those in the U.S. Despite the supply chain challenges, McKesson has stepped up to the plate with new processes and protocols to help the flow of product get to customers. According to Archer, McKesson has implemented the following: How McKesson Is Addressing the Issue •
Expanding transload operations at major U.S. ports
•
Trucking to inland U.S. destinations
•
Trucking from smaller China ports to larger ports like Shanghai
•
Increased use of Canadian rail for U.S. inland destinations like Chicago
•
Alternate operational tactics (different ports of entry, overseas warehousing, etc.)
•
Working with 3 times the normal ocean service providers to move McKesson containers
•
Defining and implementing an end-to-end lead time dashboard—prioritizing hot containers (expediting critical items)
•
Monitoring risk of global suppliers and supply chain weekly
Page 31
This means costs increase, as much as 6 to 8 times pre-COVID costs, driven by container shortages and vessels stacking up in ports2. “When vessels stack up in ports because of the increased volume and congestion, those along the supply chain who need that product will experience longer wait times and longer delays,” Archer said. Unfortunately, most ports in the U.S. are experiencing vessel backups. Long Beach, Calif., is experiencing the most delays at an estimated two-week delay3 from the time a ship is close to the port until it’s anchored at the port. East Coast ports are faring slightly better, with Savannah, Ga., experiencing about a one-week delay3.
VGM Playbook: Forecasting 2022
Moving Forward In summary, supply chain disruptors and implications are here to stay for the time being, including slow delivery times, increased freight, logistics, and raw material costs along with labor shortages driving product cost increases.
McKesson Medical-Surgical: Supply Outlook With Operational Updates | 21
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[
McKesson Medical-Surgical: Supply Outlook With Operational Updates Provided by McKesson
We’re hopeful that together, we’ll successfully navigate through the pandemic.
]
But despite the challenges ahead, McKesson is working hard to get the products providers need to best serve patients during this tough time. And McKesson has enhanced operational processes to ensure we’re doing all we can to get products and supplies to patients and providers who need them the most. Our tireless work to make a bad situation as good as possible sets us apart from others, and we’re hopeful that together, we’ll successfully navigate through the pandemic.
References Cleveland Research Company Market Intelligence, Transportation Industry Monthly: Trend Analysis October 18, 2021 1
Drewry Container Freight Rate Insight, drewrycfri. co.uk/trade-1582-4-1 2
Kuehne + Nagel, Transpacific Eastbound & Indian Subcontinent Market Update, Week 44, Nov. 4, 2021 3
To learn more about the latest supply chain updates, please visit https://mms.mckesson.com/content/ managing-global-supply-chain-challenges/. About McKesson McKesson Corp. is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments, and other organizations in healthcare to help provide the right medicines, medical products, and healthcare services to the right patients at the right time—safely and costeffectively. United by our ICARE shared principles, our employees work every day to innovate and deliver opportunities that make our customers and partners more successful—all for the better health of patients. McKesson has been named a “Most Admired Company” in the healthcare wholesaler category by FORTUNE, a “Best Place to Work” by the Human Rights Campaign Foundation, and a top militaryfriendly company by Military Friendly. For more information, visit www.mckesson.com.
VGM Playbook: Forecasting 2022
McKesson Medical-Surgical: Supply Outlook With Operational Updates | 22
New Logistics in Product Fulfillment By Jonathan West, Procurement Director, VGM Fulfillment
T
oilet paper. Who would have ever guessed that a shortage of toilet paper would be an early sign of challenges that the pandemic would create for the world’s supply chain? And that those challenges may last well into 2022 and possibly beyond?
[
It’s not just one variable but rather a complex supply chain where “fixing” one issue can create another issue downstream.
]
We’ve all asked the question: “How did we get to a point that 18 to 20 months after the start of the pandemic, almost every industry is still experiencing inventory shortages?” Is it the ocean ports? Is it the staffing shortage? Manufacturing constraints? The truth is, it’s not just one variable but rather a complex supply chain where “fixing” one issue can create another issue downstream. How We Got Here Pre-pandemic, the majority of supply chains in the world would operate with a just-in-time model: Only order product when it’s needed, which minimizes costs associated with carrying additional inventory. And while this presented challenges at times, it’s a model that was often successful if consumer trends were consistent year over year, and even if trends changed seasonally, the historical data allowed everyone to usually forecast when that change would occur.
[
Operating in a just-in-time world doesn’t give much room for a major forecasting error or significant change in demand.
VGM Playbook: Forecasting 2022
]
But operating in a just-in-time world doesn’t give much room for a major forecasting error or significant change in demand. Once the pandemic hit, buying patterns shifted, not to mention manufacturing stopped at many facilities as the world shut down. Many people who used to spend funds on traveling or restaurants were now at home spending money in different places, such as home projects or online shopping. Bringing it back to toilet paper, people began to buy more of certain items than they ever would have in the past due to fears of what the future may hold. In a sense, many consumers were doing the exact opposite of just in time—they moved to a just-in-case model by building up months or years of inventory at a time. All of this to say, supply expectations for nearly every product in the world were immediately thrown off once the pandemic started, which showed the risks of a just-in-time supply chain. The factors above, plus many others, created the chain reaction that still impacts us today. Shut down a factory for a couple weeks and your manufacturing line gets behind while orders possibly increase as consumers shift spending patterns. Manufacture more goods than the world has ever seen and you run into shortages of raw materials and even production line shortages. Get the manufactured goods to a port, and the freight sits on a dock as it waits for empty ocean containers or open capacity on a ship. Unload that record freight increase at the destination port after days of waiting on the ocean only, again, to have it wait on the dock due to a massive driver and equipment shortage. Arrive to New Logistics in Product Fulfillment | 23
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New Logistics in Product Fulfillment By Jonathan West, Procurement Director, VGM Fulfillment
a facility that will ship the product to the consumer only for that facility to be struggling with the nation’s staffing challenges.
[
Ship and container manufacturing takes time, so we’re most likely still a year out before we begin to see additional capacity.
]
These are just a couple examples, of many, that point to challenges throughout this year. And while some solutions may seem simple for the global supply chain, many of those solutions still require time. Ship and container manufacturing takes time, so we’re most likely still a year out before we begin to see additional capacity inducted into the shipping channels. This also doesn’t factor in material shortages that manufacturers in any space may be struggling with. Oh, and don’t forget that every step of the way, a premium was paid to get the product from one point to the next.
[
Challenges continue to be very real and will most likely be here well into 2022.
]
The Impact on the Healthcare Industry The healthcare industry has experienced challenges just as much, if not more, due to the pandemic. In talking with many of our VGM Fulfillment vendor partners, challenges continue to be very real and will most likely be here well into 2022. Even as I’m writing this article, a vendor partner just reached out to let us know of an item delay, due to their production molds being stuck in transit at a carrier terminal. Another vendor partner recently told me that multiple containers had been “stuck” on the ocean in the backlog of ships waiting to be unloaded.
VGM Playbook: Forecasting 2022
As our industry works to get ahead of the CPAP machine shortage, our vendor partners continue to focus their efforts on meeting demand within the industry. The VGM Fulfillment procurement team is working weekly with our vendor partners to help anticipate any challenges in the short and long term as we go into 2022. In doing so, we were also able to limit our resupply backorders in 2021.
Page 24
While our CPAP business has experienced a higher than average backorder rate during the pandemic, 2021 averaged only
1%
higher than our pre-pandemic backorder rates
While our CPAP business has experienced a higher than average backorder rate during the pandemic, 2021 averaged only 1% higher than our pre-pandemic backorder rates. This credit goes in large part to the efforts of all vendor partners during this challenging time.
New Logistics in Product Fulfillment | 24
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New Logistics in Product Fulfillment By Jonathan West, Procurement Director, VGM Fulfillment
What’s Ahead While this article discusses mainly supply chain challenges, it points to one major thing—higher prices. These challenges most likely mean higher prices for the consumer, as every step of a product’s journey— from manufacturing to container ships to domestic transportation—has drastically increased in price over the past year. Until the capacity situation improves, we should expect to see this trend in most industries.
[
One thing is clear: The just-in-time model used across most of the global supply chain seems to be outdated.
]
As we assess the past 18 months, one thing seems to be clear: The just-in-time model that’s been used across most of the global supply chain seems to be an outdated model that lacks the ability to be flexible with quick changes in society. While the just-in-case model may not be the perfect answer to the situation, it certainly seems that the argument can be made to implement some of its methods. And while some may say this situation will never happen again in our lifetime, one thing is certain: It did happen once in our lifetime. And we need to use that experience to better our global supply chain going forward.
VGM Playbook: Forecasting 2022
ABOUT THE AUTHOR Jonathan West, Procurement Director, VGM Fulfillment As director of procurement for VGM Fulfillment, Jonathan, along with his team, is constantly monitoring inventory and evaluating processes to ensure appropriate stocking of over 2,500 items which impact over 500 DME partners. Jonathan’s extensive career experience in logistics and supply chain management was a key driver in his addition to the VGM Fulfillment team. Before joining Fulfillment, Jonathan was with Target for 10 years as an executive in both operations and logistics. His knowledge and vision has contributed significantly to low backorder rates during the most challenging supply-chain period in recent history, which also included significant growth for VGM Fulfillment. Jonathan’s commitment to our vendor partners and finding ways to create relationships within the industry have positively impacted nearly every VGM Fulfillment customer. Connect with Jonathan via email at Jonathan.West@vgm.com.
New Logistics in Product Fulfillment | 25
Reimbursement Landscape in 2022 By Ronda Buhrmester, Senior Director, Payer Relations and Reimbursement, VGM Government Relations
W
hat does the reimbursement landscape look like in 2022? Let’s get the crystal ball out to discover what this new year has in store for the billing, reimbursement, and audit areas.
The country (and the world) is still living through a public health emergency (PHE) with the coronavirus pandemic now creeping up on two years. We have faced a fair share of challenges in the chaos. However, there has also been some lessons learned. The PHE should be coming to an end in 2022, probably midway through the year, which means we all should be planning our strategies in preparation for life post-PHE. Preparing for Life Post-PHE While we have not heard from CMS on any instruction for post-PHE, I suspect the instruction would include grandfathering current active rental patients versus having the patient requalify. With the time that has lapsed since the start of the pandemic, it does not make sense to have patients requalify or qualify to meet medical policy criteria for equipment that is already in use in the home. The system would get overloaded if it was forced.
[
Our industry can overcome anything that is thrown our way because of our adaptability, knowledge, experience, and good judgement.
]
CMS has indicated that they will give the healthcare industry a 60-day notice prior to the PHE ending, and I do believe they will stay true to that statement, maybe even a 90-day notice. Now, I am certain there will be some nuances that will come with the instruction for post PHE. Let’s be realistic, it is CMS. However, I know our industry can overcome anything that is thrown in our direction because of our adaptability, knowledge, experience, and good judgement. Recognizing Our Significance Even though the pandemic has brought on its own set of challenges for the DME industry, it has also shed some light recognizing our efforts. CMS has VGM Playbook: Forecasting 2022
recognized that modifications addressed with waivers during the PHE have also been lessons learned. The DME industry’s efforts of servicing patients—with a prescription from their treating practitioner for medically necessary equipment required for therapy in the home that either allows the discharge from the hospital to occur sooner or keeps the patient out of the hospital—has been the most significant lesson learned for CMS. Even though, as an industry, we know our capabilities, our significance, CMS is starting to understand it. What does this look like for us in 2022? We already know of one big policy change coming our way—the oxygen medical policy. The implementation of the new oxygen equipment medical policy should happen within the first half of 2022. The most significant change is the elimination of the CMS CMN-484 for oxygen. The PHE forced the Medicare contractors to find a way to process a claim without the certificate of medical necessity (CMN), and they did. It was finally recognized that the CMN was a claim processing tool only. This has become a big win for our industry because claims will pay faster, and there is no longer a hold waiting for the referral to complete and sign the CMS document for initial and recertification claims. When running reports for on-hold and A/R days, the percentages should improve.
[
Once the oxygen medical policy is implemented, we will be down to four CMNs.
]
Another big win is less stress and frustration with referrals. When I started in the industry many years ago, and many of you will relate to this as well, there were CMS CMN forms for every piece of DME. Once the oxygen medical policy is implemented, we will be down to four CMNs. With the changes coming to the oxygen policy in 2022, this will open our doors to more changes with the positive airway pressure (PAP) and respiratory assist device (RAD) medical policies.
Reimbursement Landscape in 2022 | 26
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Reimbursement Landscape in 2022 By Ronda Buhrmester, Senior Director, Payer Relations and Reimbursement, VGM Government Relations
Easing Entry Into Telehealth Another silver lining the pandemic has revealed in our industry is telehealth. While telehealth has always been around for the DME industry, the guidelines have been very restrictive for every party involved (patient, referral, and provider). During the pandemic, the waivers for telehealth guidelines were relaxed, allowing the patient-to-practitioner interaction to be smoother. While the Office of Inspector General (OIG) has included telehealth monitoring on its COVID-19 workplan, I believe their research will have effective findings allowing for some of the restrictions to be lifted and for easier access for patients to receive medically necessary equipment for use in the home.
[
During 2022, the audits will continue at the prepayment and post-payment level.
]
Increasing Audits We need to bring in the discussion of audits in 2022. While there was a short period of relief early in the pandemic, audits have resumed, including the prepayment audits known as target, probe, and educate (TPE) that are conducted by the local DME MACs. During 2022, the audits will continue at the prepayment and post-payment level. Normally, we see a majority of the audits in the Medicare fee for service (FFS) area; however, the audits have been on the rise with all other payers (Medicare advantage plans, commercial, and MCO) and will continue through 2022.
[
Set a company policy that follows the coverage criteria for Medicare FFS medical policies.
VGM Playbook: Forecasting 2022
]
Because of this, it’s vital that DME providers understand the policy guidelines for all the payers that you have contracts with, and if you are unsure of what their policy includes then follow Medicare FFS policies. What we have seen is that Medicare FFS sets the standards for medical policies and all other payers will follow the same guidelines (no need to reinvent the wheel). When in doubt, set a company policy that follows the coverage criteria for Medicare FFS policies. In addition, be sure to gather all medical records upfront, before delivery occurs, to ensure the coverage criteria has been met. Embracing E-prescription Getting medical records up-front leads into the discussion of where we will be in 2022 with technology in our industry. Once again, the pandemic forced our industry to learn about the options available, specifically for home medical equipment providers at various levels. Don’t get me wrong, I know the technology platforms have also done their share with improvements that meet our needs. In 2022, we will see more suppliers adapting to e-prescribing platforms that allow the treating practitioners to capture the medical necessity information that is required for a successful reimbursement.
[
We will also see suppliers heading toward a paperless operation.
]
We will also see suppliers heading toward a paperless operation. Because of the advancements of e-prescribing, a supplier can do the front-end process of an intake through delivery of equipment to a patient all paperless. The referral is received electronically, and the delivery occurs with a mobile delivery device that allows for patient signatures. This also means no more missed signatures on a form, no more papers gone missing, and also a quicker, smoother claim submission and payment process.
Reimbursement Landscape in 2022 | 27
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Reimbursement Landscape in 2022 By Ronda Buhrmester, Senior Director, Payer Relations and Reimbursement, VGM Government Relations
Moving to a Non-Assigned Claim Model In 2022, I foresee a few more suppliers adapting to the non-assigned claim model. Let me explain my reasoning behind this prediction. With supply chain issues that will continue in 2022, we have faced an increase in acquisition costs and surcharges ranging from 20% to 30%, and this will continue to increase. We have seen delivery charges, meaning delivery and setup of equipment to the home, on the rise ranging from 19% to 43% during the pandemic, and this will continue. We have payroll expenses and overhead expenses that are breaking records, in addition to staffing shortages that all will continue through 2022. With the already inadequate, low reimbursements from all payers, we must become a better part of the solution that is available and has been for many years. This is the option of submitting claims non-assigned when enrolled as a non-participating supplier. While nonassigned applies to Medicare FFS claims, this could be negotiated within other payer contracts (that will take some big efforts, but is doable), otherwise looking into a deluxe feature charge or upgrade charge where the patient would have some out-of-pocket expense. CMS continuously monitors our habits and collects the data showing that the majority of suppliers (over 95%) accept assignment. From their perspective, the allowables on the fee schedule are sufficient because the industry continues to accept assignment. Even when the rates continue to decline, our habits remain unchanged. We need to change the reimbursement landscape, and their view. That starts with changing habits by submitting claims non-assigned and, unfortunately, passing some of the costs onto the patient, the one needing the equipment. Getting patients more involved with understanding the financial impact helps our voice to be heard. Continuing to Adapt To wrap up the outlook for the reimbursement landscape in 2022, we continue to adapt quickly to VGM Playbook: Forecasting 2022
change and new challenges. We will see favorable changes in policies even though the audits will continue and will be on the rise with all payers. We need to protect our business by pushing back with the payers, in addition to passing some of the costs onto the patients. While DME suppliers continue to service patients with medical equipment in the home, the crystal ball shows that our industry will continue to shine. ABOUT THE AUTHOR Ronda Buhrmester, Senior Director, Payer Relations and Reimbursement, VGM Government Relations As a VGM employee owner since 2012, Ronda specializes in the billing, reimbursement, and audit areas as the senior director of payer relations and reimbursement. She managed a hospital-based DME in Illinois for 12 years, and handled sales and marketing. Ronda is a respiratory therapist as well as a certified mastectomy fitter. With over 20 years of experience in the healthcare industry, she assists VGM members with review of claims and all types of audits, and educates members on medical policies in the respiratory and all other DME products. She serves on the Jurisdictions B and D respiratory team, is a member of the Provider Outreach and Education teams with the Jurisdictions, and attends the council meetings with all four Jurisdictions. She is also on the Great Lakes Home Medical Services Association board of directors and a member the National Supplier Clearinghouse Advisory Council. Ronda has presented at the VGM Heartland Conference as well as the Medtrade and state association meetings, and has conducted webinars and on-site education with VGM members. You can connect with Ronda via email at Ronda. Buhrmester@vgm.com or follow her on LinkedIn.
Reimbursement Landscape in 2022 | 28
Complex Rehab Reimbursement Forecast By Dan Fedor, Director, Reimbursement and Education, U.S. Rehab
I
n 2021 the DME industry, including complex rehab wheelchair providers, had many challenges with the public health emergency (PHE)—an increase of Medicare Replacement (“Advantage”) Plans and Medicaid managed care organizations (MCOs), and product delays and cost increases due to supply chain issues because of the COVID-19 pandemic.
So, what can the DME industry expect for 2022 ? We know for certain that the PHE waivers have been extended to late January 2022 and possibly beyond if there are additional 90-day extensions. Below are some other things to watch for in 2022:
[
In 2022, we expect some more stability than we had in 2021, but with some continued challenges.
]
In 2022, we expect more stability than we had in 2021, but with some continued challenges. However, we know the DME industry, as always, will continue to advocate, provide medically necessary DME, and secure reimbursement for qualified patients.
Reimbursement Changes to Watch For in 2022
ABOUT THE AUTHOR
•
Reinstate the sequestration deduction from DME reimbursement in second and third quarter of 2022 (2%)
Dan Fedor, Director, Reimbursement, U.S. Rehab
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Telehealth continuation in place of in-person visits for the ordering practitioner beyond the end of the PHE
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Licensed/certified medical professional (LMCP) specialty evaluation (required for complex rehab— K0005, E1161, K0835-K0864) may allow telehealth (at the time of publication TBD)
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Removal of the virtual option once the PHE ends for the home assessment and assistive technology professional (ATP) assessment
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Removal of signature waiver once the PHE ends
•
Reimbursement challenges will continue and grow with Medicare Replacement Plans as more Medicare beneficiaries are unknowingly lured into selecting a for-profit private insurance company to administer their Medicare healthcare benefits
•
Audits will be back to normal with the Medicare administrative contractors (MACs), recovery audit contractors (RACs), etc.
Dan has been in the HME industry for over 28 years and currently serves as the Director of Reimbursement for U.S. Rehab, a division of VGM & Associates. He is a graduate of Penn State University where he earned a BS in Economics. Dan joined VGM in 2014 and before that, was the Director of Education and Compliance for Pride Mobility Products / Quantum Rehab for 13 years. Prior to joining Pride, Dan served as a Senior Manager for Provider Outreach and Education (POE) and Electronic Data Interchange for the Jurisdiction A DME MAC (United Healthcare) for nearly 6 years. Dan has presented at numerous local and national events regarding Medicare compliance and reimbursement including, Medtrade, Heartland Conference, ISS, RESNA and for multiple state association meetings. You can contact Dan at Dan.Fedor@vgm.com.
•
Personal mobility device (PMD) repair audits will resume
VGM Playbook: Forecasting 2022
Complex Rehab Reimbursement Forecast | 29
The Return of the RACs By Wayne H. van Halem, AHFI, CFE, President, The van Halem Group
T
he Recovery Audit Contractor (RAC) Program wreaked havoc in in the DMEPOS industry from 2011 until about 2015 when they were essentially given free rein to audit DMEPOS claims. While there were limits as to how many claims they could audit from a unique provider, there was no limit on how many providers could get audited. And for a while, it seemed no one was immune.
The RACs get paid a contingency on any overpayments and underpayments they find. Of course, underpayments account for a very small percentage of the incorrect payments that they identify. This program made the RACs quite a bit money, which obviously allowed CMS to recoup a lot of money as well. From the eyes of the government, the program was a huge success. Ballooning Backlogs What they did not plan for was the impact it would have on the administrative appeal process. As the RAC increased its audit activity, the appeal system became strained. Despite federal regulations that required hearing decisions within 90 days, a significant backlog began to grow. Not staffed or funded to handle the number of appeals they were receiving, the Office of Medicare Hearings and Appeals (OMHA) allowed the backlog to reach over 700,000 appeals at one point. With that volume, it was taking providers up to five years in some instances to get a hearing. Page 30
The Office of Medicare Hearings and Appeals (OMHA) allowed the backlog to reach
700,000
over appeals and was taking providers up to to get a hearing For some reason, it took a while for CMS to recognize that the RAC program was having a direct impact on the appeal backlog. During the height of the backlog, VGM Playbook: Forecasting 2022
DMEPOS claims accounted for about 54% of the total appeal backlog, and the RACs were really focused on DME claims. Correcting Course Eventually, CMS made some changes to the RAC program and significantly limited the number of claims the RAC could review. Previously, once an issue was approved by CMS, the RAC was free to audit as many claims as they could handle. CMS changed the program and once an issue was approved, the RAC was limited to only looking at between 500 and 2,000 claims. Once that preliminary review was done, CMS then analyzed the impact it had on the appeal process. For example, were the denials being appealed and were they getting overturned? Essentially, CMS wanted to limit the number of new appeals entering an already overburdened backlogged system. If it resulted in appeals being filed, then CMS would not authorize the RAC to continue reviewing those types of claims. As a result, the volume of RAC audits dropped significantly. It wasn’t until a 2018 federal court ruling in favor of the American Hospital Association and its member hospital plaintiffs, which established annual deadline-based targets for reducing the backlog of Medicare appeals at the Administrative Law Judge (ALJ) level, that Health and Human Services (HHS) was forced to act. With a significantly increased budget, OMHA opened seven new offices throughout the country and hired 70 new judges to assist in meeting the court-ordered deadline to hearing cases within the 90-day timeframe required by the Code of Federal Regulations.
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7 70
OMHA opened new offices throughout the country and hired
new judges The Return of the RACs | 30
The Return of the RACs
continued...
By Wayne H. van Halem, AHFI, CFE, President, The van Halem Group In its most recent status report to the court, HHS stated, “By the end of the third quarter of 2021, a total of 86,063 appeals remain pending at OMHA, which is a reduction of over 79% from the starting number of appeals identified in the court’s order.”
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a reduction of over By the which end ofisthe third quarter of 2021, a total of appeals remain pending at OMHA, which is a reduction of over
86,063 79% Audits Ahead
Page 43
That brings us to today. The court ordered the backlog resolved by the end of 2022; however, discussions I have had with ALJs and the numbers reflect that they are ahead of schedule and the backlog will likely be resolved by the spring of 2022. We are now seeing hearings getting scheduled within three or four months of submission.
[
I asked OMHA if their intent was to reduce staffing once caught up on appeals—it was clear they had no intention of doing that.
Staffed to handle approximately
300,000 appeal requests per year within the -day requirement
In the recent report to the court, OMHA reported that additional appeals received in the third quarter of 2021 totaled 8,083, compared to 8,172 in the second quarter, with only 288 RAC-related receipts. That volume is less than 35,000 appeals per year, but they are staffed to handle 300,000. It doesn’t take a genius to figure out that they will need to start receiving a lot more appeals in order to maintain the increased budget and staffing that they currently have, and there is one very easy way to accomplish that. CMS recently increased the number of claims the RAC could review during the preliminary stage. I’m afraid it is a sign of what is to come. Once the backlog is resolved, I believe the limitations put forth on the RACs will become less restrictive and allow for more audits to occur.
][
With the new offices and judges, representatives from OMHA had previously indicated to me that they are staffed now to handle approximately 300,000 appeal requests per year within the 90-day requirement. However, with the reduction of audit activity during the pandemic and the restrictions on the RAC, they are receiving nowhere near that volume. I asked if their intent was to reduce their staffing once caught up and it was clear that they had no intention of doing that. VGM Playbook: Forecasting 2022
Page 31
I do anticipate a significant increase in RAC audit activity in 2022 compared to the last several years.
]
I am hopeful it will not be at the level that we saw back when the program began, but I do anticipate a significant increase in RAC audit activity in 2022 compared to what we have been used to for the last several years.
The Return of the RACs | 31
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The Return of the RACs By Wayne H. van Halem, AHFI, CFE, President, The van Halem Group
Preparing as a Provider I understand that this news doesn’t sit well with providers, but awareness of what the audit landscape may look like is important. It’s a good opportunity to take a look at the RAC’s list of approved issues for Region 5 (DME, home health, and hospice) and if you see products and services that you provide, then conduct a review of a sample of claims to make sure documentation is accurate and supportive of the claims you submit.
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Being proactive and prepared is the key to assuring that RAC auditors can’t come in and recoup money from your business.
]
Being proactive and prepared is the key to assuring that RAC auditors can’t come in and recoup money from your business. If they audit you and don’t find anything, they will likely move on and audit elsewhere, as they only make money when they find incorrect payments. If you want an independent review, contact The van Halem Group for more information.
VGM Playbook: Forecasting 2022
ABOUT THE AUTHOR Wayne H. van Halem, AHFI, CFE, President, The van Halem Group Wayne founded The van Halem Group in 2006. The Atlanta-based firm merged with VGM Group in 2014, and Wayne currently serves as its president as they assist providers through complex issues related to audits, appeals, enrollment, and compliance. As a CMS contractor for 10 years, he spent a majority of that time as a fraud investigator and national appeals director. Wayne is also a published author and well-known lecturer. He is an accredited healthcare fraud investigator through the National Health Care Anti-Fraud Association (NHCAA), a certified fraud examiner through the Association of Certified Fraud Examiners (ACFE), and an active member of the Health Care Compliance Association (HCCA). He has served on the faculty for each of these national organizations. He also sits on the American Association for Homecare’s Regulatory Council, Medtrade’s Educational Advisory Board, Medicare DME MAC Jurisdiction D Advisory Council, Advisory Board for HME Business Magazine, and the board of directors for Friends of Disabled Adults and Children (FODAC) and the Georgia Association of Medical Equipment Suppliers (GAMES). He has also served as an expert in various criminal and civil proceedings. Under his leadership, The van Halem Group has saved clients over $100 million in overpayments and denial recoveries. Follow him on LinkedIn.
The Return of the RACs | 32
Once More Unto the Breach, Dear Friends By John Gallagher, VP, VGM Government Relations
O
nce more unto the breach, dear friends…in Shakespeare’s Henry V, King Henry speaks this phrase to encourage his soldiers, who are launching an attack, forward through a gap or breach in the walls of Harfleur. It remains a battle cry to this day. It is a reminder that, whether it is a real battle in the battlefield or a battle in daily life, one should always try again. It’s a phrase that comes to mind for me because—heading into the second year of 117th Congress is an adventure to say the least.
Legislative Strategy for 2022 With midterm elections in November 2022, we will need to focus our efforts in the first and second quarter of the year. Politicians will be focused mainly on campaigning by August. As an industry we will be begin working in early 2022 to find a champion on the E&C committee. At the same time, the industry will be focused on language to address concerns with non-rural and competitive bid area rates. The hope is by the time this is published, the CMS DME final rule will have been released and have offered the anticipated rural relief extending the 50/50 blended rates indefinitely, rather than at the conclusion of the public health emergency (PHE). (At the time of printing the rule had not been released.)
(Jay Witter of AAHomecare, Seth Johnson of Pride, John Gallagher of VGM, Rep. Cathy McMorris Rodgers, and Jim Kissler of Norco) Jay Witter, Seth Johnson, and Jim Kissler of Norco, and I met this past fall with Rep. Cathy McMorris Rodgers, who is likely to be the incoming chairwomen of Energy and Commerce (E&C) after the midterm elections. (Regardless of your politics, history indicates the party in power normally loses anywhere from 23 to 40 seats during a midterm election. Republicans will only need to pick up five seats.) During our conversation, McMorris Rodgers indicated that while she remains a champion for the DMEPOS industry, as chairwomen she will have a full plate. And the industry will need to work to build an additional champion on the E&C Committee—similar to when Dr. Tom Price (R-GA) tapped McMorris Rodgers to be the next champion for the industry as he moved into leadership years ago.
VGM Playbook: Forecasting 2022
Once we have the language and support on E&C, we will want to take that language and gain support on Ways and Means and with the Rural and Underserved Task Force [Reps. Terri Sewell (D-AL), Jodey Arrington (R-TX), Danny Davis (D-IL), and Brad Wenstrup (R-OH)]. Simultaneously, we will need to work with industry supporters on the Senate Finance Committee [Sens. Thune (R-SD), Grassley (R-IA), and Wyden (D-OR)]. Not to be lost in all these efforts, we will also focus on legislative and regulatory issues related to complex rehab technology, women’s health issues, and orthotics and prosthetics. In addition, we plan to continue to create supportive documents and studies to quantify our arguments.
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For over a year, the team has been working with auction experts to create a sustainable auction system.
]
Once More Unto the Breach, Dear Friends | 33
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Once More Unto the Breach, Dear Friends By John Gallagher, VP, VGM Government Relations
Alternative Bidding Program With the postponement of the competitive bid program until at least 2023 to 2024, providers have been saddled with the rates from 2015. For over a year, the team has been working with auction experts to create a sustainable auction system that achieves the industry objective of sustainable rates while maintaining the government’s objective of providing quality products and services at an equitable price. To this end, we are working with Missouri State University’s economic department on an agentbased modeling program to verify the effectiveness of a workable auction system. We have been working with the Ways and Means Rural and Underserved Task Force with hopes they will find this alternative auction system within their wheelhouse to move CMS legislatively.
membership in this key industry stakeholder group. For a long time, VGM has promoted the fact that when state associations are strong, the DME industry is strong. And thereby, VGM is strong.
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In these transformative times for our industry, it’s critical to have both grasstops and grassroots efforts.
]
Grassroots Accountability Project (GAP)
VGM and AAHomecare partnered together to strengthen grassroots advocacy efforts within the industry with the Grassroots Accountability Project (GAP). In these transformative times for our industry, it’s critical to have both grasstops (high level) and grassroots efforts working in tandem to help move This is where our grassroots efforts will be employed. the dial on DME issues. GAP is a vehicle for the DME industry to effectively target and reach all 535 federal Continue to build relationships with freshmen legislative offices with a unified message on major members of Congress who are most vulnerable during DME priorities. the first re-election campaigns, which is an excellent opportunity to have their voices heard. We will want Under GAP, industry stakeholders volunteer to to work with state associations scheduling meetings become a primary contact to a particular legislator during the spring and summer time frame. and maintain a constant presence with that legislator to educate and activate them on our issues. Together, we will broaden our reach on the hill and secure more champions for our cause. If you are not a member of When state associations are strong, the GAP, please reach out to Emily Harken of VGM or the DME industry is strong. Ashley Plauché of AAHomecare by clicking on this link, to become a volunteer.
[
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In addition, during the turbulent times of the COVID-19 pandemic, state associations have fallen on tough times. The VGM Government team will be focused on helping to sustain, recruit, and build a provider
VGM Playbook: Forecasting 2022
We hope you will join us in these efforts. One more time into the breaches!
Once More Unto the Breach, Dear Friends | 34
continued...
Once More Unto the Breach, Dear Friends By John Gallagher, VP, VGM Government Relations
ABOUT THE AUTHOR John Gallagher, VP, VGM Government Relations John E. Gallagher is vice president of government relations for the VGM Group, Inc., where he is responsible for advocating on behalf of VGM members/DME providers to Congress, the administration, and federal agencies. Gallagher has also amassed thousands of miles, traveling across the country to educate both the state associations and independent providers on regulatory and government issues. Additionally, Gallagher has worked tenaciously to promote upstanding service within the home medical VGM Playbook: Forecasting 2022
equipment industry. He is a board member of both the Healthcare Quality Association for Accreditation (HQAA) and the Fraud Eradication Advisory Team (FEAT). John received his undergraduate degree from the University of Northern Iowa and a master’s degree in management from the State University of New York Binghamton. Prior to his 2002 employment with VGM, John served as a U.S. Army Signal Corp. Officer from 1983 to 1990. He also held a number of executive positions in the medical equipment industry. In 2016, John was inducted into the Inaugural Hall of Fame for both the University of Northern Iowa Army ROTC and the United States Army Reserve Officer Training Command (ROTC). You can connect with him on LinkedIn or contact him at John.Gallagher@vgm.com.
Once More Unto the Breach, Dear Friends | 35
Why Hasn’t E-Prescribing of DME Taken Off? By Ken Hodel, VP, Product Development, DMEscripts
E
lectronic prescribing of medications and lab tests have been a part of the healthcare ecosystem for almost 20 years. It has been proven to improve quality of care, reduce errors, increase efficiency, and lower administrative costs. So why hasn’t e-prescribing of durable medical equipment taken off?
[
The pandemic accelerated the acceptance of new technology that could benefit both physicians and their patients.
Reluctance to Change
e-prescribe orders come with a billable and refillable prescription in addition to the accompanying documentation to prove medical necessity for the item being ordered. The orders produced by these platforms reduce, and many times remove, the rework that is inherent in the current fax and phone-based DME ordering process.
][
With DME e-prescribe everyone wins—healthcare provider, DME provider, and patient.
]
For many years, change in healthcare was mired in a reluctance by physicians to adopt new technologies. The general perception had been that technology was an inhibitor that slowed them down and created more work. However, as the pandemic progressed, it accelerated the acceptance of new technology that could benefit both physicians and their patients.
Without the friction point of rework, orders can sail smoothly from intake to delivery resulting in real benefits for DME providers like faster delivery of orders, higher patient and healthcare provider satisfaction, reduced inbound calls, and increased patient starts on service. With DME e-prescribe everyone wins—healthcare provider, DME provider, and patient.
Complexity
Educate Yourself
E-prescribing for DME is unlike e-prescribing for meds or labs in that more than just a prescription with a signature is required to justify the patient getting what has been prescribed. Payer qualification guidelines and the need for supporting documentation add a complexity to e-prescribe for DME that is accounted for in only a handful of DME e-prescribe platforms.
It is crucial that DME providers educate themselves. Most important is to know what differentiates a DME e-prescribe order from an order e-faxed out of an EHR system.
[
The orders produced by these e-prescribe platforms reduce, and many times remove, rework.
]
What Is a DME E-Prescribe Platform? All four of the DME e-prescribe platforms (DMEscripts, eOrders Plus, GoScripts, Parachute Health) are centered around producing complete and accurate DME orders. Unlike the e-faxed orders that come out of an electronic health record (EHR) or referral management platform, a high percentage of DME VGM Playbook: Forecasting 2022
E-faxed orders from an EHR system are certainly a far sight better than handwritten orders since they are typically legible and provide accurate patient demographic information. However, EHR systems most often don’t help qualify the order or provide the HCPCS and utilization data that is required for a billable and refillable prescription. Adjust to Transparency Once you’ve made the decision to pursue an e-prescribe strategy, you must marry the opportunity of the moment with thoughtful preparation. The best way to do that is to take a hard look at your current intake, qualification, and order execution processes to see if they will stand up to the transparency that e-prescribe brings with it. Why Hasn’t E-Prescribing of DME Taken Off? | 36
continued...
Why Hasn’t E-Prescribing of DME Taken Off? By Ken Hodel, VP, Product Development, DMEscripts
Healthcare providers will now have a greater level of transparency with what happens on every order they send to you through one of these platforms, and your processes must adjust to meet their expectations. DME providers will still compete on service but the specificity and granularity of the data provided will allow healthcare providers to make much more educated decisions about the DME providers they choose to work with.
With a new openness to change by physicians and quantifiable benefits experienced by DME providers, the adoption of the DME e-prescribe platforms is poised to explode in 2022. But that explosion is dependent on DME providers becoming agents of change, maturing from passively accepting DME e-prescribe orders to actively driving the adoption of these platforms among the healthcare providers they work with.
If you expect your healthcare providers to make this change with you, you’re going to have to find ways to incentivize them to do so.
Any DME provider is capable of turning a reluctant healthcare provider into a devoted user of DME e-prescribe platform.
[
][
One effective strategy I’ve seen from DME providers is to adjust their processes to prioritize DME e-prescribe orders over all other orders, pushing them to the front of the line. If you expect your healthcare providers to make this change with you, you’re going to have to find some ways to incentivize them to do so.
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]
Opportunity + Preparation = Success Any DME provider is capable of turning a reluctant healthcare provider into a devoted user of DME e-prescribe platform. 2022 will be the year to seize the opportunity of the current moment and use it to drive the adoption of DME e-prescribe across the country.
10%
It’s estimated that
or less of current DME orders originate in e-prescribe platforms ABOUT THE AUTHOR
Passive to Active In the past few years, the percentage of orders flowing through the DME e-prescribe platforms has slowly increased, yet most would agree that 10% or less of current DME orders originate there.
[
The adoption of the DME e-prescribe platforms is poised to explode in 2022.
VGM Playbook: Forecasting 2022
]
Ken Hodel, VP, Product Development, DMEscripts Ken Hodel is VP of product development at DMEscripts and held the same role at its predecessor company, DMEhub. You can connect with Ken via email at Ken.Hodel@dmescripts.com or follow him on LinkedIn.
Why Hasn’t E-Prescribing of DME Taken Off? | 37
Forecasting Your Cybersecurity Risk By Jay Bracken, CISSP, Information Security Officer, VGM Group, Inc.
T
he information security landscape continues to shift quickly in the current pandemic environment and is likely to change even more in the new normal postpandemic. Employees are now accustomed to remote or hybrid workplaces and the use of highly interactive communication tools such as Zoom and Teams.
Companies all around the world are relying more on third-party vendors for their software, systems hosting, and security services. This new reality requires organizations to look at security through an entirely new lens—one that is adaptable to quick changes, supports flexible work environments, and acknowledges the presence of third parties in the process.
The most common line of questioning I get is: Where do I start? How do you know what questions to ask, what rocks to look under, what the standards for the industry might be? Unfortunately, there isn’t a one-size-fits-all answer. The process is as unique as your organization. That’s why I highly recommend starting with one of two options: either contracting with a qualified third-party security consultant or utilizing an established risk assessment platform such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework.
[
It is often easy to overlook or ignore risks in your own systems as you are accustomed to them being there.
]
The Preferred Option: Hire an Expert
[
The preferred option is to bring in an external expert in security risk to assess your environment. A cybersecurity risk professional will know the right questions to ask to cover all aspects of your business and draw out any risk areas you may have overlooked. The third-party can give you an unbiased look at your comprehensive risk posture; it is often easy to overlook or ignore risks in your own systems as you are accustomed to them being there.
It’s important to know exactly where your risk is coming from in order to focus your resources.
Perform a Risk Assessment
][
The first step in addressing the information security risk to your organization is to perform a thorough risk assessment process. It’s important to know exactly where your risk is coming from in order to focus your resources where they will do the most to protect your organization. In fact, the HIPAA Security Rule requires covered entities and business associates to perform a comprehensive risk assessment anyway—you might as well make the most of it. VGM Playbook: Forecasting 2022
Hiring an expert can be expensive— but finding hidden risks could potentially save you from a security breach.
]
An expert can also provide you with guidance on how to eliminate these risks, or on compensating controls that could be used to reduce the impact of these risks to your data. They have the expertise to explain the risk to you in terms you can understand. Hiring an expert can be expensive—but finding hidden risks could potentially save you from a security breach, which will cost a whole lot more in the long run.
Forecasting Your Cybersecurity Risk | 38
continued...
Forecasting Your Cybersecurity Risk By Jay Bracken, CISSP, Information Security Officer, VGM Group, Inc.
The Budget-Friendly Option: Do It Yourself If hiring a third-party to perform your risk assessment isn’t in the budget right now, it is still worth performing a self-assessment at least annually. When performing a self-assessment, it is vital to start out with an established risk assessment platform, to make sure you cover all the bases. There are many to choose from, however, I recommend the NIST Cybersecurity Framework as it is comprehensive and regularly updated. The NIST framework takes you through the five key functions of security practices, which are summarized below:
[
Either way you choose to assess your risk, the most important thing is to be honest.
]
Honesty Is the Best Policy Either way you choose to assess your risk, either yourself or by a third party, the most important thing is to be honest. Hiding from risks is not a successful long-term strategy—an attacker will find them.
5 Key Functions of Security Practices 1.
Identify – What are your critical processes? What systems support those processes? What are the roles and responsibilities for cybersecurity in your organization? Where is your important data stored? Document this information so you can refer back to it and keep your key operations secure.
2. Protect – Restrict access to your data and systems, secure your devices, manage your vulnerabilities, and provide security awareness training to all staff. 3. Detect – Develop detection mechanisms such as software tools that monitor network activity and can quickly alert you of any irregular activity in your environment. 4. Respond – Develop and test processes to take action when a security event is detected. Even if you use a third party to handle security tasks for you, test this process as you will need to work with them in the event of an incident. 5. Recover – Create and implement processes to allow you to resume normal business operations after an event, and communicate with key suppliers, customers, and staff.
VGM Playbook: Forecasting 2022
And if you find yourself unable to answer or understand the controls in the security framework, that may be a good sign that it’s time to hire a consultant to help you through the process.
[
Many large security breaches you’ve heard about on the news came not from the company themselves, but from a trusted partner.
]
Trust but Verify An often-missed element I’d like to address specifically is assessing risk of third parties you interact with. This could be a vendor you hire to do your security monitoring, a cloud provider that hosts your systems, an electronic health record (EHR)
Forecasting Your Cybersecurity Risk | 39
continued...
Forecasting Your Cybersecurity Risk By Jay Bracken, CISSP, Information Security Officer, VGM Group, Inc.
system, the alarm company that secures your facility, even companies that provide your equipment. Many large security breaches you’ve heard about on the news came not from the company themselves, but from a trusted partner. Reach out to these third parties and discuss their security and resiliency controls, and make sure their processes align with yours. If you are using a vendor for an EHR system, they should already have documented controls to secure protected health information (PHI). A large cloud hosting provider such as Amazon Web Services (AWS) or Azure will have security certifications you can review, and smaller providers should be able to show they are taking security just as seriously.
[
]
Make sure you take a “trust but verify” approach because at the end of the day, your data is your responsibility.
As interconnected as all information systems are these days, there are many entities outside your own walls that have access to your data. Make sure you take a “trust but verify” approach because at the end of the day, your data is your responsibility. Expect companies you interact with to ask the same of you as well and be prepared!
VGM Playbook: Forecasting 2022
Security Is Never “Done” Finally, document all your risks and review them regularly with management/ownership. It is important that the leaders of an organization understand how much risk they are accepting. Security is never “done.” There is always some risk in operating information systems or handling sensitive data. The important thing is to know where your risks lie and start building processes to mitigate these risks over time. A continuous loop of identifying and reducing risk is the only way to stay ahead of the curve in the everchanging security landscape. ABOUT THE AUTHOR Jay Bracken, CISSP, Information Security Officer, VGM Group, Inc. Jay Bracken, CISSP, is the information security officer for the VGM Group, where he continues to evolve a comprehensive information security program. With over 13 years of cybersecurity experience, Jay has leveraged his extensive technical and business operation experience to apply sound IT security practices while supporting the complex, highly regulated business requirements of the healthcare industry. He is also responsible for the development and coordination of VGM’s strategic IT security planning and business continuity initiatives to reduce risks, respond to incidents, and limit exposure to liability that may result in financial and image loss to the organization. You can connect with Jay on LinkedIn or email him at Jay.Bracken@vgm.com.
Forecasting Your Cybersecurity Risk | 40
Using Data to Hit the Right Sales Targets at DASCO Home Medical Equipment Jill Cisco, Sales Manager, DASCO HME
A
sales and marketing strategy is only as good as the data that you have behind it. Without a way to measure or benchmark your success, you don’t fully understand your current positioning and how you have improved over time.
[
A sales and marketing strategy is only as good as the data that you have behind it.
]
For years, DASCO Home Medical Equipment used its own data and book of business to gauge the impact of its sales efforts, which did not show the whole picture of potential. We used inaccurate information, often self-reported by referral sources, to determine which accounts were frequently using DME services. Each year, we planned based on which physicians had utilized our services, which were new accounts to DASCO, the accounts that had retracted from a previous period. Goals and performance were set based on the analysis of our own data. Today, we have an entirely new outlook on goal setting and performance. As part of our overall growth strategy, the leadership at DASCO HME decided to invest in VGM Market Data and utilize it to its fullest potential. Utilization of the market data tool has been beneficial for DASCO HME over the past couple of years.
[
VGM Market Data has changed how we establish goals and targets for our sales and marketing team.
]
VGM Market Data has changed how we establish goals and targets for our sales and marketing team. We use Market Data to identify the top prescribers based on number of claims and decile ranking, which has allowed us to concentrate our efforts more precisely. Territory plans are more focused on prescribers with high utilization according to the Market Data, not referral source-reported intel. Then VGM Playbook: Forecasting 2022
we use our real-time internal data to measure growth in these accounts. Having the data at our fingertips means the preplanning work is already done for us. It provides our account executives more time to focus on being in the field and gives them confidence they are calling on the right accounts.
[
The market data tool provides solid information about how we are doing compared to our competitors.
]
In addition, the market data tool provides solid information about how we are doing compared to our competitors. Being successful in sales has always included understanding the successes and challenges of competitors and setting precise plans to take over market share. Previously, we were using intuition and referral source statements to determine success and how we compared to our competitors. Now we have supporting data to assist our sales team in strategizing. With the market data tool, we know our overall percentage of market share with physicians and can easily see as the data is updated if our executed plans are making a difference.
Using Data to Hit the Right Sales Targets at DASCO Home Medical Equipment | 41
continued...
[
Using Data to Hit the Right Sales Targets at DASCO Home Medical Equipment Jill Cisco, Sales Manager, DASCO HME
VGM Market Data provides a more accurate method of identifying new service areas with maximum growth potential.
]
Having Market Data access to multiple states gives DASCO HME the ability to identify and strategize about business expansion. We can evaluate referral volume and understand the competition before adding new locations. Prior to utilizing the Market Data tool, this was based on referral source statements, standard population data, and intuition. VGM Market Data provides a more accurate method of identifying new service areas with maximum growth potential. Utilizing the market data tool has proven to be beneficial for DASCO HME. It has helped the sales team to better prepare, strategize, and execute plans. Additionally, the market data tool supports better management of the sales team. Sales managers are basing direction, coaching, and performance evaluations on real market information. Page 42
PURPOSE
To help people breathe, sleep and feel better
VISION
To be a place where human beings thrive
VALUES LISTEN
be present
FUN play
POSITIVITY
choose your attitude
SERVICE
make their day
DASCO’s sales team growth has improved by an estimated
5% 8% to
ABOUT THE AUTHOR Jill Cisco, Sales Manager, DASCO HME
year over year
Since using the market data tool, DASCO’s sales team growth has improved by an estimated 5% to 8% year over year. We will continue to use the market data tool as an important component of our growth strategy.
VGM Playbook: Forecasting 2022
Jill Cisco is the sales manager for DASCO Home Medical. Jill has over 20 years of experience in the durable medical equipment industry. She has a passion for knowing that she helps to make an impact on the health and well-being of the patients that DASCO serves. She believes in having a positive attitude every day and always tries to share this with others. Jill and her husband, Scott, have been married for 36 years, and they have two sons. In her free time, she enjoys boating, biking, and spending time with her four grandchildren.
Using Data to Hit the Right Sales Targets at DASCO Home Medical Equipment | 42
Digital Trends and Customer Experience: Customer Database Is King By Lindy Tentinger, President, VGM Forbin
T
he past two years accelerated and forever changed the digital world across the board. Both customers and employees are demanding more: seamless omni-channel experiences, convenience, reassurance, and commitment to environmental, social, and governance (ESG) values. For marketers, there is—now more than ever—a chance for a blank slate. Many companies are taking advantage and re-inventing their brands and how they engage customers. According to Forrester’s 2022 predictions: “2022 is a year to be bold. The old ways of working no longer work. The future is up for grabs.”
[
In tough times, growth comes from being important in the lives of our customers.
The thing that’s changed the most about marketing is how people choose to become customers. The trends covered in this article are focused on things you can do for your business that can be implemented rather quickly and will make the biggest impact on your customers’ choice to utilize Pageyour 43 services.
65%
of consumers who are looking for an omni-channel experience
VGM Playbook: Forecasting 2022
According to McKinsey, the COVID-19 pandemic will drive long-term changes for 65% of consumers who are looking for an omni-channel experience when it comes to their purchasing behavior and decisions. Many want the ability to purchase online, yet also want an in-store option to see/feel/experience products. Major players like Amazon are even experiencing longer lead times and deliveries as a result of higher demand among consumers who are placing a premium on the safety and convenience of having products delivered directly to their homes.
][
In tough times, growth comes from being important in the lives of our customers.The great thing about this space is YOU ARE vital in your customers’ lives. This has never been more apparent. Customers are hungry to interact and will stay loyal to those who help them improve their quality of life. The Amazons and Walmarts of the world cannot compare to this. Take advantage, and make sure your customers know what you offer and show them a great experience.
The COVID-19 pandemic will drive long-term changes for
Deliver an Omni-Channel Experience
Continuing to build and clean up your customer database is essential moving forward.
]
First and foremost, continuing to build and clean up your customer database is essential moving forward. If you focus on nothing else, take the time to ensure you are building a database, asking for the right data points, and showing value to customers in how you engage at any point in their experience. You can influence subscribing by demonstrating value. Then launch a targeted, personalized communication and content strategy plan based on the makeup of the customers you’ve discovered and captured (more on that later). You can no longer force your attention; you must be invited in.
[
]
If you don’t have an e-commerce website, now is the time to seriously consider your strategy and investment moving forward.
If you don’t have an e-commerce website, now is the time to seriously consider your strategy and investment moving forward. If you already have an e-commerce store, you’re probably thinking to yourself, “But I’m not Amazon. I’m one of the thousands of other e-commerce sites trying to pick Digital Trends and Customer Experience: Customer Database Is King | 43
continued...
Digital Trends and Customer Experience: Customer Database Is King By Lindy Tentinger, President, VGM Forbin
up the scraps they leave behind.” Guess what? That’s fine. You won’t succeed trying to beat Amazon at their own game. You need to succeed with a smart strategy, tailored for your business, that will drive conversions and purchases.
[
You won’t succeed trying to beat Amazon at their own game. You need to succeed with a smart strategy, tailored for your business.
]
All of that starts with a product page that stands out from the rest and having a nurture strategy for your customers along the journey. Remind them of your service, remind them you are there, and remind them of what you have to offer. More times than not, they simply just do not know. Below are a few quick tips for product pages: Product Page: 5 Best Practices 1.
Write Unique Product Descriptions Let’s be honest—DME providers all around the country provide products from the same manufacturers. So, you need to make sure that your product description is different than every other provider’s description of the same product. Not enough providers take the time to do this. Instead, most choose to use the same product description that the manufacturer provides on their website. By taking the extra time to write a unique product description, you’re giving yourself a leg up over a vast majority of your competitors right away.
2. Include Specifications With Any Products Specifications are key to helping buyers make decisions about a product. Anything from weight capacity, volume for storage, and the materials of the product can be used by a potential customer as they make a buying decision. Here’s the bottom line: Giving buyers more information about a product is never a bad strategy.
VGM Playbook: Forecasting 2022
3. Make Sure Key Product Features Stand Out Product descriptions are important, but it’s also important to make sure you allow buyers to see the features that will make them want to purchase that product from you. Highlight key attributes of the product that will make it an attractive purchase option. It’s best to lay these key features out in bullet format so they stand out from the rest of the content on your product pages. 4. Provide the Ability to Bundle Similar Products Let’s say you have the ability to sell CPAP equipment on your website. Make sure your site’s functionality gives you the ability to bundle products together for more convenient purchasing. Whether it’s being able to bundle tubing with a CPAP machine or see associated products like masks and filters while on a product page, the easier you make it for users to add similar products to their cart, the more revenue you can generate per order. 5. Incorporate a User-Friendly Design There’s nothing more frustrating for a customer than to find a product they’re looking for and encountering a site that makes it difficult to complete the purchase. Creating a design for your site focused on user experience is one of the most underrated aspects of successful e-commerce websites. On product pages, make sure the product price (including any discounts) and the “Add to Cart” button are easy to see so users can immediately add the product to their cart when they’re ready to purchase. You’re in a unique position that allows you to make adjustments to your product content strategy that have the potential to make a huge impact on your e-commerce business moving forward. Nurture Customers to Stay Top of Mind From an e-commerce standpoint, you have a captive audience. Customers create an account, and you have access to the profile, search history, purchase
Digital Trends and Customer Experience: Customer Database Is King | 44
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Digital Trends and Customer Experience: Customer Database Is King By Lindy Tentinger, President, VGM Forbin
history, and so on. This is a rich opportunity to communicate the right messages at the right time with your customers, based on their behavior. Examples of strategic messages for e-commerce customers include:
To scale with your customers, you can implement a retention nurture strategy to influence repeat business and referrals. The least expensive customer to acquire is one that is referred by another satisfied customer. Here are some ideas on how to nurture your current customers:
•
Order tracker
•
Cart abandonment
•
Discounts and sales
•
Upsell
•
Seasonal promotions
•
You might also be interested in…
•
Back in stock
•
Urgent messages and reminders (how seriously you take security, cleanliness in your stores, how to contact your service team, recalls, industry updates, etc.)
•
Referral program
•
New products
•
Education (e.g., disease states)
•
Brand values
•
Newsletter
•
Rewards and perks
•
NPS/reviews
•
Product adoption
•
Milestones/anniversary
•
Seasonal promotions and resources
•
Urgent communication
Keep Your Customers’ Information Safe
[
The least expensive customer to acquire is one that is referred by another satisfied customer.
VGM Playbook: Forecasting 2022
]
If you have not upgraded your website recently (three years or more), chances are you do not have a secure platform for your information and, more frighteningly, any customer information that is stored. Some weaknesses that the pandemic uncovered tie directly back to outdated websites. Websites should be at the center or hub of any digital, content, and customer experience strategy, and it needs to be treated as such in terms of constantly updating content, having the most accurate information, being a resource center for customers, showcasing your company products/ services offered, and staff, being mobile friendly, explaining safety and sanitary protocols, and catering to your search strategy with optimized content.
Digital Trends and Customer Experience: Customer Database Is King | 45
continued...
Digital Trends and Customer Experience: Customer Database Is King By Lindy Tentinger, President, VGM Forbin those experiences. Here’s some help. Netflix: I watch when I want. Amazon: I shop when I want. Peloton: I work out when I want. AND all of those experiences are personalized for YOU. When we talk about the rise of consumerism, this is what everyone is used to. It must be more than 2008’s email marketing, “Dear [first name].”
Since 2020, some of the weaknesses uncovered of current provider websites include: •
Not compliant
•
Not accessible
•
Outdated programming language
•
Vulnerable to system failure
•
Inability to fight cyberattacks
•
Spam
•
Inaccurate patient database
•
Incorrect hours/updates
[
Upgrading your website will not only keep your company and customers more secure, it will drive your entire digital destiny.
]
It may seem like your website is “working just fine” and the investment doesn’t seem to offer the ROI of other projects. However, if you really dig in with your team to uncover the nuts and bolts, you will find that an upgrade will not only keep your company and customers more secure, but it is also the driver of your entire digital destiny and should very much take a front seat every single day. Personalize the Customer Experience With a Customer Portal Personalization must look different moving forward. Why? Think about all the different experiences you have and what you actually get to personalize in VGM Playbook: Forecasting 2022
A trend we are seeing to help with a personalized experience is customer portals. A portal is set up with each user account. Based on the profile information, behavior on the site, purchase history, and other data points, the portal can display custom messages, relevant resources, and special offers based on your individual customer vs. one size fits all. The customer benefits from personalized service, direct access to their information, multiple ways to communicate about their care or services, ability to make appointments, and much more.
[
]
Personalization in 2022 and beyond addresses the problem I’m looking to solve vs. my name and where I live.
Personalization in 2022 and beyond addresses the problem I’m looking to solve vs. my name and where I live.
[
Showcase your staff, your customers, your process—anything that can give customers a true feel of the experience they will receive.
]
Tell Your Brand’s Story Through Video Video has been on the digital trends list for years now. 2022 will continue to see video in the driver’s seat— however, with more of a focus on actually telling your brand’s story. Showcase your staff, your customers, your process—anything that can give customers a true feel of the experience they will receive if they engage with you. Your product is what helps your customers do and be. Bring that to life.
Digital Trends and Customer Experience: Customer Database Is King | 46
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Digital Trends and Customer Experience: Customer Database Is King By Lindy Tentinger, President, VGM Forbin
A few other video tips include vertical video (According to MediaBrix, vertical videos have a 90% higher completion rate than horizontal videos, with less than 30% of mobile users watching videos horizontally), captions are a must for so many reasons, and don’t be shy to go live. Page 47
90% 30%
Vertical videos have a
higher completion rate than horizontal videos, with
Lindy Tentinger, President, VGM Forbin
of mobile users watching videos horizontally
Page 51
One great example of brand storytelling through video is PhRMA. Starting in 2017, PhRMA started releasing a series of video storytelling ads highlighting important new medical research to find cures for serious diseases such as cancer, heart disease, and Alzheimer’s. Each video spotlights a researcher who is working in the field to help save lives. The videos tell captivating stories that portray patients as well as dedicated medical professionals. Together ALS, for example, begins with the touching plight of people suffering from this debilitating disease. From there, we see researchers discussing their efforts to find a cure.
[
Doing just one thing in the direction of a better customer experience in 2022 will pay off.
VGM Playbook: Forecasting 2022
Reading about trends every year can cause a panic instinct reaction because there is so much that can and should be done. Doing just one thing in the direction of a better customer experience in 2022 will pay off. Start a project, establish milestones, budget, executive oversight, appropriate team members, customer feedback, and most importantly, figure out how you will measure success. By the end of 2022, you will have data to help guide the next project. And your customers will remember you and come back for more. ABOUT THE AUTHOR
less than
A Case Study: PhRMA
Start With One Thing
]
Although she may have a little extra luck because she was born on St. Patrick’s Day, it’s her hard work and experience in various industry verticals that sets Forbin’s president, Lindy Tentinger, apart from the rest. With a bachelor’s degree in electronic media from Wartburg College and an MBA from Bellevue University, Lindy is well versed in various marketing and business platforms. Her education, coupled with her industry experience, allows her to find strategic solutions for each individual situation. In fact, focusing on exceeding the expectations of the customers VGM Forbin serves is a standard she sets not only for herself but for the entire company. She leads the team by working to deliver a customer experience that creates raving Forbin fans—that is Forbin’s ultimate why. When she isn’t busy with her Forbin family, you can find her at home with her actual family. Lindy stays busy with her husband, their three kids, and their 150-pound English Mastiff, Lynx. She also can’t say no to a fun shopping trip with friends, traveling, and the University of Iowa (Go Hawkeyes). Connect with Lindy via email at LindyT@forbin.com or follow her on LinkedIn.
Digital Trends and Customer Experience: Customer Database Is King | 47
Help Wanted: Combating Employee Shortages By Brooke Kraft, Senior Talent Acquisition Specialist, VGM Group
E
verywhere we look, we see the signs: now hiring, help wanted, please be nice to the staff that did show up today (that one is my personal favorite and a good reminder). Our favorite restaurants, bars, and coffee shops are closed on Mondays and Tuesdays, menu items are limited, and our coworkers are leaving for possible greener pastures.
U.S. adults are actively looking or considering a new job search, and according to the Department of Labor, a record 4.3 million people quit Page 48their jobs in August.
40%
Over
of full-time employed U.S. adults are actively looking or considering a new job search
Employees are opting for roles where they aren’t required to commute and can work from home. They are having to consider family pressures brought on by lack of daycare or supporting an ill loved one. And fear of the virus is still ever-present. Then there are those who simply are taking the opportunity to look for a role with a higher paycheck.
Regardless of how you are internalizing the current labor market, you can likely relate as an employer, employee, and as a consumer. It seems we cannot escape the continuing ripple effects of our current economy, including mass labor shortages. As we work toward understanding and adjusting to this new labor market, the realization hits that there are many contributing factors and not a one-size-fits-all solution. The Great Resignation Anthony Klotz, a management professor at Texas A&M University, coined the phrase “Great Resignation” after realizing this is more of a cultural shift and movement than a moment in time. “When we come into contact with life-threatening events,” he said, “we tend to reflect on death and consider whether we are happy with our lives or whether we would like to make changes to them.” The pandemic has forced people to take stock of their lives and take advantage of the opportunity to reinvent and reimagine it. Surveys and research being conducted show that over 40% of full-time employed VGM Playbook: Forecasting 2022
[
The Great Resignation is real and can be seen across virtually all industries.
]
Whatever the reason, it seems like the Great Resignation is real and can be seen across virtually all industries. As a result, employers are scrambling to attract and retain workers via sign-on bonuses, remote work, and enhancing benefits to support workers’ personal and professional development. The Changing Workforce The current shortage can mean different things to different companies—some being short on skilled positions, others on entry-level/non-skilled roles, and some on both. Considerations need to be in place for changing demographics that date back pre-pandemic. We need to be prepared for more permanent loss of workers with a high number of aging and retiring workers realizing there isn’t a need to return to work. Help Wanted: Combating Employee Shortages | 48
continued...
Help Wanted: Combating Employee Shortages By Brooke Kraft, Senior Talent Acquisition Specialist, VGM Group
Some are taking early retirement, and many cite fears of the virus as their main reason to stay out of the workforce. The loss of experienced workers has made it necessary to look at succession planning that may not have been in place pre-pandemic.
[
]
the stagnant wages that have been a major problem for decades. To put things in perspective, the federal minimum wage was $1.60 per hour in 1968. In 2021, we know the federal minimum wage to be $7.25, whereas the equivalent federal minimum wage to 1968 should be $12.38 per hour.
Page 49
Even in a labor shortage, a job seeker cannot simply get a job.
Then there’s the fact that even in a labor shortage, a job seeker cannot simply get a job. The U.S. is highly educated, making for a misalignment in our population. There is a growing number of adults enrolling in fouryear colleges, and the working-age population of noncollege graduates is shrinking. If we have over 6 million jobs that do not require a college degree but a population of college graduates seeking to utilize the degree they earned, we can begin to understand a labor shortage for certain positions. On the other hand, highly skilled roles are requiring more innovation on keeping and retaining talent. Job seekers aren’t going to continue taking positions that aren’t offering relevant experience to move them forward in their career. In a tight labor market, highly skilled workers have the upper hand and are holding out for quality jobs, pay, and benefits. Similarly, employers are taking care not to hire a highly skilled candidate for a role that they know does not offer quick upward mobility. Of course, employers need employees, but it is still costly to hire someone knowing that an overqualified candidate will most likely quit at a faster rate. Combating the Shortage Let’s start with the elephant in the room: higher wages. If we think about pay, we need to think holistically. Throwing more money at people will rarely solve all our problems, and it’s the same case here. We cannot expect simply raising wages to do more than create a temporary fix. That being said, employers are now, more than ever, are taking a closer look at VGM Playbook: Forecasting 2022
The federal minimum wage of per hour hasn’t kept pace with 1968’s equivalent of per hour
$7.25
$12.38
Page 54
At VGM, we love to bring our employees together for cookouts, lunches, anniversary celebrations, and over the last few years, our baby boom celebrations. Our family-oriented culture thrives on togetherness and celebrating our employees for their personal and professional accomplishments. But it doesn’t stop there. Amidst a pandemic and economic chaos, our initiatives were pushed that much farther as we put conscious and intentional efforts toward understanding what is driving our employees and the value alignment we can provide to support them.
[
]
Even as lockdowns lift, working from home is likely to stay as employees report higher levels of both productivity and happiness.
Being forced to move all employees to remote work provided insight that productivity isn’t always highest in the office. Even as lockdowns lift, working from home is likely to stay as employees report higher levels of both productivity and happiness. VGM has initiated hybrid work schedules and hoteling stations for those who want to come into the office a few days a week. Leaving it between the employee and leader to determine a schedule that works best for the needs and success of the role and the employee. Help Wanted: Combating Employee Shortages | 49
continued...
Help Wanted: Combating Employee Shortages By Brooke Kraft, Senior Talent Acquisition Specialist, VGM Group
Instead of halting all events, such as our employee recognition awards and our annual employee owners’ update, we’ve adapted to hosting virtual events when necessary. The key? We can’t only do what we think will engage our employees in this new market. We need to be open to hearing the “why” behind employee satisfaction, the good and the bad, and closing gaps in what an employee needs to remain engaged in this new economy. A further central focus has surrounded the concept of career pathing and employee development: reskilling and upskilling workers we already have and rethinking the positions we need. Do we have roles that can be filled by internal employees who are already engaged and possess the acumen to learn the role? Are there positions we’ve hired skilled workers for in the past that can be broken down into more entry-level roles to create more opportunity for internal growth? We’ve partnered with career centers and colleges to provide certification opportunities for our employees as well as discounts on completing that college degree someone may have been longing to earn. Providing these opportunities not only gives our employees more opportunity to grow, but it also provides us with an internal pipeline of talent.
[
Leaders and human resources are now faced with an opportunity to be innovative in employee engagement and retention efforts.
]
Looking Inward The labor shortages might be getting better, but will they ever get back to what we know as normal? The short answer, probably not. Leaders and human resources are now faced with an opportunity to be innovative in employee engagement and retention efforts. There needs to be a purposeful effort to ask not only, “What are we doing to attract new employees,” but also “What are we doing to improve retention across all employees?”
VGM Playbook: Forecasting 2022
I wish we could find a magic one-size-fits-all answer to the market we are all facing. The truth is, this is the time to look inward and find innovation and vision to address the labor market for years to come. There is no doubt this shift will have a lasting effect on the workplace. People are no longer willing to settle, and they’re realizing they don’t have to. One thing we can be sure about: The pandemic forced people to take stock of their lives. It’s given them the opportunity to reimagine it and to seek value alignment in their everyday work. And employers should do the same. ABOUT THE AUTHOR Brooke Kraft, Senior Talent Acquisition Specialist, VGM Group An Iowa native, Brooke Kraft attended the University of Northern Iowa where she earned undergraduate degrees in anthropology, philosophy/ethics, and psychology. She found a true passion for the study of behavior and culture in the workplace after working as a federal investigative intern for employment discrimination at the Equal Employment Opportunity Commission (EEOC) in Chicago. She continued her education by moving east and achieving an M.A. in industrial/ organizational psychology from West Chester University of Pennsylvania. Brooke has built her career around creating an engaging, inclusive, and healthy workplace for all by specializing in human resources, recruiting, engagement, and corporate social responsibility. She currently supports the Cedar Valley as a City Council consultant on various initiatives, serves as a committee member and panelist for the Economic Diversity and Inclusion Summit, and is a founding member of the VGM Diversity, Equity & Inclusion (DEI) Committee. Connect with Brooke on LinkedIn or email her at Brooke.Kraft@vgm.com.
Help Wanted: Combating Employee Shortages | 50
Remote vs. In-Person: Is the Hybrid Workplace Here to Stay? By Paul DiMarco, APTD, VP, Organizational Development, VGM Group
T
here’s no need to spend a lot of time discussing the obvious—we all know the economy and the business world in general have gone through major changes related to the pandemic. How we “feel” about the changes that have been thrust upon us will greatly determine our paths moving forward. To that same degree, how you as business owners “feel” about whatever hybrid work structure you put in place will in many ways determine your plans moving forward. You work in an industry that requires a front-line presence. Blending that with remote working options to create a hybrid model has taken, and will continue to take, effort on many fronts—employee engagement, technology, security, and well-being. As we emerge on the other side of the COVID crisis, one thing is clear: Remote work is here to stay—for those positions that make sense. Interfacing with patients and retail customers will always need a frontline presence. In a recent “Hybrid Work Global Survey,” 83% of leaders say at least 25% of workers will be hybrid post-pandemic, and 97% are comfortable with those who can work hybrid doing so. However, only 32% believe they are completely prepared to support the shift to a hybrid work model.
Page 51
83% 97%
25%
of leaders say at least of workers will be hybrid
postpandemic, and
However, only
are comfortable with those who can work hybrid doing so.
32% believe they are
completely prepared to support the shift to a hybrid work model
Four areas of focus related to adjusting to and administering a hybrid workplace are employee engagement, technology, security, and well-being. There are multiple topics within each of these areas— let’s just examine these at a high level for now. These affect every employee, whether they are full-time in person, full-time remote, or hybrid.
VGM Playbook: Forecasting 2022
Engagement First, full-time work-from-anywhere is not right for everyone—there’s a need to bond, have access to mentors, form friendships, and share in a workplace. This is especially important for those in the earlier stages of their careers, and for those regardless of career stage who need person-to-person interaction to feel engaged and fulfilled. However, if a person’s defined tasks and goals can be accomplished in a remote/hybrid environment, and they are part of the decision process as to how that is accomplished, they can feel fully engaged without being in the office. The key is to define goals and parameters related to communication and how they will be accomplished regardless of physical work proximity. Technology By now, you’ve already encountered this hurdle for your remote workers. Now it’s time to fine-tune. Of the leaders surveyed in the “Hybrid Work Global Survey” mentioned above, 89% plan to invest in technology in the next 12 to 18 months. Upgrading laptops, cameras, phone headsets, teamwork collaboration tools, “hoteling” workspaces in your office to accommodate visiting remote workers—all are considerations to make when planning for a hybrid future.
89%
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plan to invest in technology in the next to months
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The level to which you accomplish the technology component will have a direct impact on the retention level of your current employees and the level to which you will attract new employees. Remote vs. In-Person: Is the Hybrid Workplace Here to Stay? | 51
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Remote vs. In-Person: Is the Hybrid Workplace Here to Stay? By Paul DiMarco, APTD, VP, Organizational Development, VGM Group
]
The weakest link in any system from a data security standpoint is the person sitting at the computer.
Page 52 During the pandemic, a larger than average share of young adults reported symptoms of anxiety and/or depressive disorder
56%
Security While this may have been lumped in with technology, it deserves its own category. The weakest link in any system from a data security standpoint is the person sitting at the computer. Now that you have people working away from your office, maybe on equipment that is not fully optimized by your IT team/provider, your level of data breach vulnerability has most likely increased.
Even if only a portion of your staff is remote/hybrid, invest time and energy into wellness activities and/ or programs to do what you can to proactively and positively promote the many stages of well-being in our lives.
People working from home and accessing the internet on non-secured routers opens up the likelihood that when/if those machines come back into the office and connect to your network, you could be vulnerable to ransomware/viruses. Remote workers are also more vulnerable to social engineering phishing scams. Invest in cybersecurity education and awareness programs for all employees. Well-Being It’s been reported that the next pandemic will be related to the negative mental health impacts of what we have been experiencing. Most remote workers experience less human interaction, as they generally spend their work hours at home and away from coworkers. This can increase stress and feelings of disconnection, which can affect their mental health. During the pandemic, a larger than average share of young adults reported symptoms of anxiety and/ or depressive disorder (56%). With the COVID-19 pandemic already causing more anxiety and grief than usual, remote work added to the immense stress of lockdown and subsequent hybrid work after, making mental health a huge concern.
VGM Playbook: Forecasting 2022
To get a sense of what others are doing, here are some questions and responses that were posed to some VGM member businesses who have been addressing these issues and others over the past 18+ months: Q&A With VGM Members Q: What accommodations have you made related to remote/hybrid work? A1: Seeing things from new perspectives was the first thing. Once we transitioned to the home (for certain teams), we found new, BETTER ways to measure our team’s performance. This gave our team a better visual and produced better outcomes. A2: For the most part, we have not changed the way we do business regarding remote work. We did send our billing staff home at the beginning of 2020 for several months, but recalled them in the summer/fall of 2020. We have also allowed employees who were quarantined and able to work do so remotely until they were able to return to the office. A3: We have allowed anyone who can work from home to do so. They have been given a laptop and Cisco Remote phone access via their computer. They have to have adequate internet, and some do not, so they can’t work from home.
Remote vs. In-Person: Is the Hybrid Workplace Here to Stay? | 52
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Remote vs. In-Person: Is the Hybrid Workplace Here to Stay? By Paul DiMarco, APTD, VP, Organizational Development, VGM Group
Q: What does your business plan to do in the coming year or two related to remote work?
The New Way of Working
A1: These teams are staying in the remote setting permanently. A2: We are actively considering the possibility of sending our billing staff home as permanent remote employees during the first quarter of 2022. We are researching phone systems and other options to allow for that. Our billing staff also helps field phone calls, so sending them home would cause issues with managing the incoming phone calls.
This forced experiment of work from home/hybrid work has shown us that we need hybrid workplaces, and companies need to support this new way of working. Inside and outside the office, employees need equal access to technology and opportunities. At a time when finding and hiring talent has become extremely difficult and the “Great Resignation” looms, people can be choosy about who they work for, where they work, and how they work. It’s time for employers to step up with strategies and technologies that make work rewarding, fulfilling. and exciting.
A3: We will continue to stay remote. Q: How has hybrid work impacted your business?
ABOUT THE AUTHOR
A1: As mentioned above, this has grown to make these teams stronger and produce much greater outcomes.
Paul DiMarco, APTD, VP, Organizational Development, VGM Group
A2: Our management team is split on how they view remote work. I’m frankly unconcerned with the schedule as long as the productivity is high and the work gets done on par (or better) than when staff was in the office. I do have concerns about how to keep remote employees invested in the company culture and how we keep them loyal when they can essentially work for anybody from the comfort of their own home.
In his role, Paul strategizes employee and organizational development plans with the various VGM business units. Paul also gets involved in presenting and facilitating development programs and holds certifications and credentials in multiple development programs/disciplines—most recently as a certified strengths coach for the Clifton Strengths program with Gallup Corp., and as an associate professional in talent development. He has held leadership and development positions since joining VGM in 2010. Paul and his wife, Lynda, live in Waverly, Iowa, and have two sons and two grandsons. Paul enjoys travel, creating outdoor adventures, and smoking many kinds of meat. Connect with Paul on LinkedIn or email him at Paul.DiMarco@vgm.com.
A3: We have fewer sick calls. We have set many inbuilding associates up with laptops so they can be flexible. I also have moms who will put more hours in if they can do it from home which helps with varying workloads. Our financials have not been affected even when we were closed.
[
This forced experiment has shown us that we need hybrid workplaces, and companies need to support this new way of working.
VGM Playbook: Forecasting 2022
]
Remote vs. In-Person: Is the Hybrid Workplace Here to Stay? | 53
Employees and Their Mental Health By Katie Morris, Director, Employee Benefits, VGM Group, Inc.
T
he pandemic has affected everyone. Many people are experiencing more stress than ever before in all aspects of their lives, leading to chronic loneliness and declining mental health. Mental health is the combination of our psychological, emotional, and social well-being. It determines how we feel, act, and think.
An individual can experience bouts of poor mental health without being clinically diagnosed with a mental illness. However, chronic poor mental health can lead to physical health problems such as stroke, heart disease, and diabetes as well as increased risk of mental illness. According to the National Alliance of Mental Illness (NAMI), one in five adults experience mental illness, which is among the most common health conditions in the United States. The average time between symptoms of mental illness and treatment is 11 years.
It is imperative to note that a person’s mental health can change over time. Mental health is a cause and effect of the demands placed on that person and whether their resources and coping abilities are compatible with that point in time. If the demands outweigh the resources or ability to manage those expectations, the mental health of an individual suffers. Unfortunately, there is not a test or straightforward way to identify if someone is struggling with their mental health. Each person’s situation is unique and there are many things to keep an eye out for in employees, as well as yourself: Possible Signs of Mental Health Struggles •
Extreme mood changes – highs and lows
1ADULTS 5
•
Persistent negative thoughts and feeling hopeless
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Changes in sleeping and eating habits
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Overuse of substances – alcohol, medication, or drugs
MENTAL ILLNESS
•
Constantly feeling irritable or angry
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Loss of interest in hobbies and activities
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Difficulty concentrating, remembering, or making decisions
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Avoiding friends or social gatherings
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Multiple occurrences of headaches, stomach aches, ongoing pain without obvious reason
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Inability to carry out daily activities
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Thoughts of death and suicide or suicide attempts
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in
experience a
Fortunately, mental health and self-care have become topics of discussion recently. Here are a few takeaways organizations of any size can implement to ensure their teams are engaged, supported, and thriving.
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Tough to Spot
It is imperative to note that a person’s mental health can change over time.
VGM Playbook: Forecasting 2022
]
Ways to Cope If you or someone you know are experiencing any of these signs of unhealthy mental behaviors, there are many immediate tips to cope and enhance your resilience such as:
Employees and Their Mental Health | 54
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Employees and Their Mental Health By Katie Morris, Director, Employee Benefits, VGM Group, Inc.
Tips to Enhance Your Resilience •
Communicate with coworkers, supervisors, and employees about job stress
Exercise when you can, even if it’s just a walk around the block
•
Spend time outdoors with physical activity or relaxation
»
Identify factors that cause stress and work together to develop solutions
•
»
Ask about how to access mental health resources in your workplace
Do things you enjoy during non-work hours like a hobby or activity
•
Take breaks from watching, reading, or listening to news stories, including social media
•
Ask for help if you feel you may be misusing alcohol or other drugs (including prescriptions)
•
Engage in mindfulness techniques, such as breathing exercises and meditation
•
If you are being treated for a mental health condition, continue with your treatment and talk to your provider if you experience new or worsening symptoms
•
Identify and accept the things you cannot control
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Recognize that you are performing a crucial role in your organization and that you are doing the best you can with the resources available—if you do not have the resources, ask
•
•
Increase your sense of control by keeping a consistent daily routine when possible »
Try to get adequate sleep
»
Make healthy meals a priority
»
Take breaks during your shift to rest, stretch, or check in with supportive colleagues, coworkers, friends, and family
VGM Playbook: Forecasting 2022
Employees and Their Mental Health | 55
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Employees and Their Mental Health By Katie Morris, Director, Employee Benefits, VGM Group, Inc.
Supporting Employees Resources such as the NAMI website, employee assistance programs, and health insurance providers can aid in navigating the first steps to receiving help. Taking that first step to talk to someone (friend, family member, or professional) can be hard. But remember, individuals never say, “I really wish I would have waited a little longer to get some help.” More often it is, “I am kicking myself for not doing it sooner before it got this bad.” Because many employees continue to work from their homes, employers may want to look at virtual health and wellness resources to allow for quick and easy access for all employees. Within the new norm of the hybrid workplace, it is crucial to have teams constructed in a way that allows them to regularly exchange resources and thoughts to increase interactivity, leading to a more cohesive unit rather than working parallel with one another. Some employers are trying to bridge this gap with more social events, however, that is not always effective in creating stronger relationships or providing what employees want. Instead, encourage collaboration on projects and regular check-ins as a team. Everyone has a story and hurdles that impact their everyday lives, both personally and professionally. It is important to ensure that all individuals are present and know that it is acceptable to talk about their mental health in a professional way. And it is vital to provide an outlet where employees feel supported and heard. Leading with empathy is a great way to gain rapport.
VGM Playbook: Forecasting 2022
If you or someone you know is in immediate distress or is thinking about hurting themselves, call the National Suicide Prevention Lifeline tollfree at 1-800-273-TALK (8255). You also can text the Crisis Text Line (HOME to 741741) or use the Lifeline Chat on the National Suicide Prevention Lifeline website.
ABOUT THE AUTHOR Katie Morris, Director, Employee Benefits, VGM Group, Inc. Katie develops and facilitates a robust benefits and wellness package for more than 1,000 employees. Katie began at VGM in 2009 as an intern, and since then her career journey has led her to the current position within VGM’s human resources team. Prior to joining VGM, Katie received her bachelor’s degree in communications from the University of Northern Iowa. Katie and her husband, Aaron, live in Waverly, Iowa, and have two energetic and kind-hearted children, Claire and Bennett. In her free time, Katie enjoys quality time with family, cheering on the Iowa Hawkeyes, spending time outdoors, and playing with Lilly and Luka—the family’s goldendoodles.
Employees and Their Mental Health | 56
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