At PHM – and in HME – Mastrovich sees opportunity

KENT, Wash. – With more than three decades under his belt, Larry Mastrovich, the new CEO of Performance Home Medical, has seen the HME industry weather many challenges – and he remains optimistic about its future. 

“The industry has endured a lot of headwinds, and now I think we’ve started to see a little tailwind,” said Mastrovich, who previously held executive roles at Breathe Technologies, a medical device manufacturer, and Apria Healthcare. “I think we’re going to see a more stable reimbursement environment and continued growth of the population that needs these services that can be done at home. What we do is vital and critical, and it will continue to survive and thrive.” 

HME News: How does it feel to be back on the provider side of things and how will your background serve you in the new role? 

Larry Mastrovich: I think it’s a great advantage to have been on both sides of the table. I think it gives me a unique perspective on how activities are managed and where there are opportunities for us to negotiate with different payers, providers and manufacturers. 

HME: You’ve actually been at PHM for a while now, serving as chairman since January 2024. What has you so bullish on the company? 

Mastrovich: It’s such a phenomenal company from a patient advocacy perspective. We do a great job servicing all (our areas of focus) from sleep apnea to diabetes and COPD. Our clinical care and customer service is superior to anything that I've seen, and our model is one that really could be replicated across other geographies. I believe there is an opportunity to be able to take what we have at PHM and really scale it organically and by M&A. 

HME: Do you see those core areas of business growing? 

Mastrovich: Absolutely. From a prevalence standpoint, those three areas continue to grow dramatically and need service providers like PHM to bring quality service and therapy to those patients. We’re working toward carve outs with capitation opportunities with insurance companies.  We’re working to develop a new model focused on disease performance as opposed to fee-for-service. The way things have been done historically, it's not focused on outcomes and is more focused on controlling expenses. What we're working toward is putting together data that allows us to justify what services we’re providing and how we will be reimbursed for those services. 

HME: How big of a role does technology play in your growth plans? 

Mastrovich: The biggest change that seems to be sweeping this industry is that new opportunities exist from a technology perspective that allow you to have a higher level of qualifications for revenue and insurance coverage, and help you automate a number of processes. There are opportunities with new technology and AI to use machine learning to come up with a number of things that are really critical to the life cycle of a claim. 

HME: What do you see as the industry’s biggest challenge? 

Mastrovich: I think it’s really being able to have enough quality providers that are providing health care in the home and can do it in a way that is efficient and effective. I think that’s the challenge, but it's also the opportunity. If you can figure out how to manage that, you will have an opportunity to gain market share and grow significantly and profitably.