Each December, WestMed Rehab goes all out with its holiday decorating. And while the tree, the tinsel, and the stockings hung with care might look out of place at many HME dealerships, somehow they work at WestMed Rehab.

Even without the holiday décor, this Rapid City, SD, dealership has a homey touch by design. President and founder Tim Pederson encourages a family feeling within the staff, a personalized approach with clients, and a sense of community with local residents. That approach has helped the independent dealer outdo three national competitors in its local market.

“Our motto is ‘hometown, home-owned, home medical equipment,’” says Pederson. He knows what he is talking about. Although he was born in North Dakota, he has lived in Rapid City since he was 5 years old and been interested in health care his whole life. Not surprisingly, home health care was a natural fit for Pederson, who completed his bachelor’s degree in health care administration in 1986 when there was a shift away from inpatient care.

“A lot of consolidation was going on in the hospital industry,” he says. “I could see that home health and ambulatory care were where the opportunity was.”

Going it Alone
After several years’ experience in the home health care field, Pederson decided it was time to start his own business. Together with John Nesland and Debra Holso, he launched WestMed Rehab in 1998. The company has steadily expanded since then.

“Rehabilitation technology was our bread and butter, but in 2000 we began offering home respiratory care and other medical equipment,” Pederson says. Chris Seime, BSRRT, oversees respiratory care operations. “No other provider in this market has a respiratory therapist with his credentials,” Pederson says.

When Jason Jennings, CPO, joined the staff in 2001, WestMed also expanded into orthotics and prosthetics. “Referral sources like the idea that with one phone call, they can arrange for most if not all of a patient’s discharge needs,” Pederson says.

Solving Growing Pains
Success has brought challenges, including access to capital and anticipating capital needs. “I think our cash flow has finally caught up with our growth,” Pederson says. A contract with a local hospice proved lucrative but taxing. “When they are using all 15 beds, we are happy,” he says. “But when all 15 come back, we are scratching our heads about where to put them.”

Less head-scratching will occur thanks to the recent addition of 3,500 square feet to the dealership. That includes 1,500 square feet of warehouse space, as well as administrative and clinical areas and an orthotics and prosthetics laboratory.

Rehab technology is still the company’s main focus says Pederson, an Assistive Technology Specialist (ATS) credentialed by the Rehabilitation Engineering and Assistive Technology Society of North America (RESNA).

“The other services are kind of new and growing,” he says. “Until now, we have been a home medical equipment company that does orthotics and prosthetics. A year from now, we’ll be primarily an orthotics and prosthetics company that provides HME.”

To help make that transition, WestMed Rehab has brought in Heidi Schmitt, whose orthotics and prosthetics fabrication experience will help the company produce in-house more than 90% of the finished appliances it provides. “This will save money not only in central fabrication costs but shipping as well,” Pederson says.

A board-eligible orthotics and prosthetics practitioner, Mike Lagerstrand, has also joined the team, making WestMed Rehab the only provider in its market with two dual-discipline practitioners on staff, Pederson says. “No other provider in our area has the depth of clinicians that we employ.”

Putting a Premium on People
When asked to talk about a few star associates, Pederson can’t resist naming all 16 of his coworkers, from the founding partners to Erin Frey, the high-school student who processes returned equipment after classes. Having the best staff merits investing in them, he says.

“Their happiness and welfare are very important to me,” Pederson says. “I do everything I can to minimize any concerns they have. We pay above market because I don’t want them worrying about money.”

An annual overnight holiday party at a Black Hills resort is an unusual perk. “We’re also generous with time off for family matters. I’m a single father, and I know what it’s like,” says Pederson, who has a 6-year-old son.

“We’re almost like a family,” he adds. “We have a few little squabbles, but everyone sincerely likes each other and cares about their work. In 5 years, we have had only one position turn over. It is just the type of company I would like to work for. Some of the staff own shares, but they all take ownership in what they do, which is a good thing. This whole industry needs to be conscious of elevating our own standards of practice and care.”

The WestMed team. On horses: Nancy Waccholz and Tim Pederson. Back row, from left: Mike Lagerstrand, John Nesland, Gary Lembcke, Chris Seime, Jim Hermeling, and Jason Jennings. Front row: Marcy Gray, Erin Frey, Kathleen Ruvalcaba, Heidi Schmitt, Kathy Lembcke, Debra Holso, Joe Luciano, and Tony Holso.

Freedom from corporate staffing formulas helps WestMed Rehab extend that personal touch to its clients. “We refuse to use an automated telephone attendant,” Pederson says. “Everyone is trained to answer the phone after one ring.”

Service technicians Tony Holso, Gary Lembcke, and Joe Luciano visit with patients as they deliver equipment. Some area providers chose not to provide home delivery and service for enteral nutrition. WestMed emphasizes on-site service and recognizes that many enteral clients also use custom wheelchairs.

“We stress the point that we can be in their home once a month to deliver supplies, and we can have our technician make minor repairs and adjustments to the client’s wheelchair at the same time,” Pederson says. “We are now a major player in enteral nutrition services.”

Remembering Your Roots
WestMed Rehab reaches out to the local community in many ways, including participation in health fairs and events that focus on the needs of the disabled. These activities have brought the company to the attention of clients who had not previously known what it had to offer. For instance, when national companies acquired the area’s other local facilities, those providers narrowed the scope of their services to concentrate on home respiratory care. WestMed Rehab, unlike its competitors, still has a strong focus on rehab technology, Pederson says. “Former patients who required other services were happy to meet us, and many have switched as a result of our commitment to comprehensive, personalized service,” he says.

The company’s primary market includes the Pine Ridge Reservation, where Pederson, an Oglala Lakota Sioux, has relatives. Of the reservation’s residents, 69% live below the poverty line and many go without health care. “They’re among the most impoverished and underserved areas of the country,” Pederson says. “We make it a point to provide outreach to the reservation, in part because of my heritage and in part because it is the right thing to do.”

Because diabetes is common among Native Americans, it is an area where WestMed has really been able to come to the aid of reservation residents. “We try to be proactive in preserving function of limbs or providing new limbs,” Pederson says. “We do a lot of diabetic shoes. Today, we have a prosthetist and an office person at a diabetic foot clinic at Pine Ridge Hospital. Whether the patients need new shoes or inserts or an ankle-foot orthosis, we can evaluate them, make a casting, and provide it for them. We also offer a seating positioning service with Children’s Care Hospital & School to provide the community with a clinical evaluation process.”

Recruiting and retaining quality staff and fostering relationships with its customer base and community have enabled this local outfit to outdo three national competitors serving the area. In the 5 years since Pederson, Nesland, and Debra Holso joined together to form a rehabilitation technology company, WestMed Rehab has grown into a comprehensive HME provider.

“I never thought we would get to this point,” Pederson says. “We thought we’d do three or four wheelchairs a month and have a nice life.”

Keith Bush is a contributing writer for Dealer/Provider.