(Partial) U.S. Rehab
Benchmarking Survey for 2021
A Division of VGM & Associates
About the Authors
Greg Packer
President, U.S. Rehab
Greg Packer is president of U.S. Rehab. Greg’s background, which includes sales management for Pride Mobility Products Corp. and BioCore Medical Technologies, Inc., provides him with an understanding of both the sales and product areas of rehabilitation technology. Greg served three terms in the Kansas House of Representatives and is familiar with the regulatory and governmental issues facing the rehab/HME industries. He currently serves on five industry boards and committees to help make the industry a better environment for the independent provider. Greg graduated from Iowa State University and received his master’s degree from Baker University.
Tyler Mahncke VP, U.S. Rehab
As vice president for U.S. Rehab, Tyler’s focus is on making sure members have the best tools to move their company forward— whether it’s VGM’s internal programs; our complex rehab manufacturers; or continuing education courses for ATPs, service technicians, and billing staff. Tyler is also VP of the executive board of the DMERT Group, an industry nonprofit organization that provides continuing education programs for service technicians in DME and CRT. Tyler is a graduate of the University of Northern Iowa.
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Table of Contents
Revenue by Product Line 04
(FULL VERSION ONLY) Revenue by Payer Type 05
(FULL VERSION ONLY) Pre-Tax Earnings 05
ATP Analysis 06
Employee Analysis 06
Life Cycle of an Order 07
Days Sales Outstanding 07
(FULL VERSION ONLY) Billing Department Analysis 08
Billing Software 09
(FULL VERSION ONLY) Industry Challenges 10
(FULL VERSION ONLY) Cost of Goods Sold 10
Vendors 11
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4 7% Standard Power Complex Rehab Power Other 16% 45% 22% Complex Rehab Manual 10% Standard Manual Revenue by Source Revenue by Product Line This graph is the average makeup of the revenue obtained by averaging the responses from each of the respondents. Expenses and Revenue 0% 10% 20% 30% 40% 50% 60% Other Expenses as a % of Revenue Pre-Tax Profit as a % of Revenue Cost of Sales Gross Profit (100% Minus Cost of Sales) Operating Expenses Operating Profit (Gross Profit Minus Operating Expenses) Pre-Tax Profit (Operating Profit Minus Other Income) Facility Expenses (Rent, Technology, Office Needs, etc.) Distribution Expenses Other Expenses (Sales, Marketing, and Other)
ATP Analysis
Employee Analysis
Revenue Per Employee Revenue Per ATP
$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000
The average revenue by assistive technology professionals (ATP) for the respondents of the survey came in at $1,648,000 annually. This graph shows where a majority of the respondents fell. Outliers are shown by the stems on the graph.
$1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000
The average revenue per employee is $523,000. This was the total revenue divided by the total number of employees. Outliers are shown by stems of the graph.
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Life Cycle of an Order
39% of the respondents to the survey fell into the 30- to 60-day window, and another 39% of the respondents fell into the 70- to 95-day time period. The other 22% of the respondents landed in the 95+ time frame. The overall average life cycle of all respondents to the survey came out to be 81 days.
Days Sales Outstanding
This graph shows where the responds fell as a percentage of the total (i.e., what percentage have a days sales outstanding of “x time frame”).
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30-60 Days 41%
Days 14%
45%
Days Sales Outstanding
91-120
61-90 Days
95+ Days, 22% 70-95 Days, 39% 30-60 Days,
120% 100% 80% 60% 40% 20% 0% Days Outstanding
39%
Billing
This graph shows what billing software is used as a percentage of the total responses.
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Software Billing Software Brightree 66% Noble House 5% Atlas 9% Qs1 5% POSiTrack 5% Own 5% Pacware 5%
Vendors
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A Division of VGM & Associates