Outsourcing eases operational strains

As the HME industry navigates a more and more complex landscape, companies that provide outsourcing services are emerging as sustainable solutions. By transferring logistical tasks to specialized partners, providers can focus on patient care—a model more suited to the industry's future, these companies say. 

Staffing headwinds 

The industry is under strain from higher salary expectations, rising living costs, and the significant expense of onboarding and training. Add to this the challenges of scaling operations and it’s clear why personnel shortages are a critical issue. 

Tactical Back Office (TBO) recruits and trains new hires in-house for eight weeks before placing them with clients, offering a full range of administrative, billing and patient management services. By handling employee management from start to finish, the company relieves providers of these complexities, says Todd Usher, founder of TBO. 

“The one thing that’s a headache for everybody is recruitment, so we've made that easier for people,” he said. 

In-house hassles 

Some providers believe they can service products in-house for less, but they often overlook additional burdens, says Jim Worrell, chief commercial officer of Quality Biomedical. 

Handling repairs in-house means dealing with tasks like purchasing and tracking parts, managing inventory, sorting damaged shipments, and coordinating returns and credits with vendors. Each step requires time and precision, making in-house repair more resource-intensive than it appears, he says. 

“We service between 10,000 to 15,000 concentrators and 200 to 300 ventilators a month—that's a lot,” he said. “We do it really well, we know what parts work and what parts don’t, and what vendors deliver. So, if customers focused on revenue-generating instead of piling (energy) into purchasing and receiving and shipping and inventory control, maybe they’d make more money." 

Global disruptions 

Since the COVID-19 pandemic, global supply chains have faced unprecedented disruptions, marked by labor shortages, geopolitical conflicts and increased costs. Companies now face a more complex landscape, requiring adaptive strategies to maintain reliability and meet demand. 

Outsourcing supply chain management allows providers to tap into an established network of key industry players, from overseas manufacturers to domestic transportation providers, says Peter Martin, president of VGM Fulfillment. 

“We work extremely hard to ensure we have redundancy in our network (to cushion) major disruptions, whether that be potential port strikes or unexpected weather events,” he said. “We have world-class supply chain expertise and acumen. We’re a major account for large transportation providers, so we work with senior level leaders in those companies. It's all about reliability and mitigating risk.”