In many ways, business software is inextricably linked to two of the industry's biggest topics: accreditation and competitive bidding. Even if you had the good luck to not be named among the first 10 MSAs for competitive bidding, you know that you will eventually have to be accredited if you want to serve Medicare beneficiaries. For those who recently put in bids on or around the July 20 submission deadline, software may have built in the efficiencies needed to make a low and competitive bid.

For providers who will be swept up in the next 70 MSAs, now may be the time to build in those efficiencies that will lower costs and streamline your practices for smoother accreditation. In our running dialogue with software innovators, we are finding a continuing willingness by vendors to work with providers and match the software to the company—not the other way around.

In government circles, health care technology has also been the buzzword. For example, the US Senate recently approved a bill (S 1693) that would help health care providers buy and adopt new information technology products. According to a report from Congressional Quarterly, the bill would "require government purchases of information technology to meet basic standards on exchanging health care information." A panel of government and private-sector stakeholders would set the standards.

While the legislation does not specifically impact HME providers, it signals that lawmakers are willing to spend taxpayer dollars to make health care more efficient. "Long term, I think it will affect the HME industry," says Kent Barnes of TeamDME Inc, Brentwood, Tenn. "The government is now allowing hospitals to pay for software that would allow the doctor and the hospital to share information between them. In the past, this was viewed as a kickback and not allowed. There are already health information networks emerging that give health care parties the ability to exchange data via a secure Web portal—this is all health care parties, not just hospitals and doctors but payors and home health dealers."

If you've been examined by a particularly young physician lately, you probably have already seen your electronic medical record created on the spot via a handheld device. Large physician networks in major urban areas have already gone digital. The move is in part a response to studies lamenting the increase in fatal medical errors. "In our health care system, medical errors are all too common, and coordination of care is often poor," said Senator Edward M. Kennedy (D-Mass) in a statement made in conjunction with S 1693's passage. According to a press release, the government estimates the nation could save $140 billion each year from better use of information technology. For HME providers, technology could mean the difference between winning a bid and going out of business.

In this month's installment of Executive Tech Talk, HME Today chats about the future of technology and its impact on HME providers. These software veterans have seen the industry change as it mirrors technological progress from other health care sectors.

HME Today: Why is technology so important in a competitive bidding era?

Esther Apter

Esther Apter, president of Healthcare Management Solutions (HMS) and CEO of MedFORCE Technologies, Chestnut Ridge, NY: Webster's definition of technology is "the practical application of knowledge in a particular area [computers] to control an environment [competitive bidding]." By definition, technology must serve a purpose. To serve a purpose, the tool must make it easier—or in some circumstances possible—for humans to survive in that environment. Competitive bidding has without a doubt made HME a new environment.

The wheel gave mankind control of mobility; computer solutions will give mankind control of competitive bidding. Technology provides better data and more efficient operations, both extremely important survival tools in the competitive bidding era.

Spencer Kay, president, Fastrack Healthcare Systems Inc, Plainview, NY: Technology is vital because it can significantly reduce operating costs by improving productivity. For example, many providers have staff wandering around searching for files, many of which are misfiled—as opposed to having a document storage capability within their software application to access documents. Technology can eliminate many redundant functions such as order confirmation. A good routing system can reduce overtime and the amount of gasoline used.

Spencer Kay

HME Today: In working with new clients, what do you find is the biggest misconception about your product? How do you dispel this misconception?

Apter: The greatest misconception is that document imaging is difficult to implement and is consistently put on "hold" for that reason. The easiest way to dispel that myth is to have customers speak with those that went before them.

One of the most common statements we hear is how easy it was to get started with the MedFORCE solutions. Document imaging is about simplifying processes, eliminating unnecessary work, reducing expenses, and effective management of resources. A recent installation reduced the time from date of service to the date of primary billing from an average of 7 days to an average of 3 hours. This kind of strong evidence is what we use to dispel the misconception.

Kay: While everyone is familiar with order entry, billing, etc, most providers have no direct experience with technology such as bar coding, routing systems, and business intelligence tools. As a result, they believe it can't work for them. As well, many providers fail to give their employees enough credit, thinking that they can't handle automation processes. To overcome this, we show them success stories among our existing client base, where the benefits can be explained by our clients.

HME Today: Looking 5 years down the road, how do you think software and new technology will shape the HME business?

Apter: Actually, I think it will be the reverse. The HME business needs will shape software solutions and new technology. Plato said, "Necessity is the mother of invention." Out of dire situations come ingenious solutions.

It is imperative that we as software solution providers answer the call of the providers that demand better tools and better solutions and efficient workflow components. The software world has moved to open architecture. HME providers are demanding the ability to choose and integrate "the best of the breed" solution that works most efficiently for their specific environment. Most software vendors have already begun to comply with the new world of open architecture and flexibility, and have been assisting providers to select the solutions that best fit their needs.

Kay: Software and new technology will be the difference between failure and success just as they have been in other industries. They will provide more costs savings by eliminating many of the paper-intensive and tedious tasks that require so many people and are error prone.