In today’s HME world, providers and manufacturers must learn how to adapt to changes in the industry. In an interview with Dealer/Provider, Kevin Fraser, president, Star Cushion Products Inc, Freeburg, Ill, discusses how his company was able to adapt to changes in the seating industry while improving service to customers.
Dealer/Provider: How have coding issues affected the seating industry?
Fraser: Overall, the changes have brought clarification to the therapeutic benefits offered by seating products. Under the old system code, cushion differentiation was limited and did not represent the wide range of products or the differentials in manufacturing costs. Today, coding categories delineate specific criteria based on performance, durability, and safety, ensuring appropriate seating intervention for the clinical application.
D/P: How is the industry reacting to the reimbursement changes?
Fraser: There has obviously been a lot of confusion within the industry with the changes that have taken place over the past 3 years. When we first heard about the proposed changes to the old EO192 code, we were actually pretty happy with the concept. There was a definite need to differentiate the vast styles and functions of the many cushions that were with this code. However, the initial KO108 code made life tough for processing claims. But the most significant outcome of all the changes was the reduction in allowables. We have actually gone from $378 from the old EO192 code to $331.47 for code KO734. I can certainly attest, and I’m sure that the majority of other manufacturers would agree, that the cost of business has not decreased by over 12% during this same period. In addition, only $2.72 separates the allowable between KO734 (skin protection) and KO736 (skin protection and positioning). The extra cost associated between the two from a manufacturing standpoint pales in comparison. Although it is affecting their bottom line, our dealers are putting the needs of their clients first.
D/P: What has Star Cushion Products done in response to these changes?
Fraser: Star has consistently maintained the highest quality products in the market. As the policy changes evolved, Star worked closely to understand and fulfill every requirement (eg, fire retardancy, warranty, performance tests, load tests). When the new policies were set in place, Star had validated its product quality in meeting and/or exceeding the higher coding standards of performance, safety, and durability. Additionally, at the first of the year, we temporarily reduced our dealer pricing across the board and this lower pricing still exists today. Star has never compromised, nor will we ever compromise, quality or durability in an attempt to save money. In fact, instead of being more conservative this year, we retooled our entire product line enhancing softness and durability to the user. We showcased our new “soft cell” design at this year’s Medtrade. In addition, we brought our first economical line of cushions called the Star-Lite.
D/P: How did Medtrade Atlanta attendees react to the products you featured at the show?
Fraser: The response at this year’s show was very positive. Our featured items included the new “soft cell” line of cushions and the Star-Lite cushion…both went extremely well. We have been asked repeatedly to produce a lower cost cushion that still performed well from a pressure mapping standpoint. The Star-Lite conforms to both of these requests. Several attendees commented on our dedication to quality and really appreciated the “soft cell” changes incorporated into our products. Our goal is to make sure our equipment dealers, clinicians, and, most importantly, our end users are getting the best quality and best performing products on the market.