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Software Provides Comparison Data for Home Oxygen Delivery

February 1, 2007 by Mobility Management

Taking the time to probe the issues covered by these questions will pay off.
The choices you make will have a decisive affect on your business, so it’s
crucial to choose well. As industry conditions become more challenging and
margins narrow, the competitive edge you can get from powerful, effective IT
solutions may make the difference whether you can stay in the game.

Strategic Dynamics Inc. recently released an updated version of its
software-based economic model to help HME suppliers provide home oxygen in a
cost-effective manner while still providing clinically appropriate equipment.
The model assists HME providers in understanding the financial ramifications of
modality specific reimbursement (including the new class OGPE) and the effects
of patient ownership of an oxygen asset after 36 months.

The model takes into account the reimbursement period, prescription
information, activities of daily living requirements, equipment acquisition
costs, operational costs and anticipated monthly reimbursement. The software
then calculates oxygen requirements and provides a financial comparison of
purchasing vs. leasing, using the two most common lease programs available.

The model also allows the HME provider to see the effects of transferring an
oxygen asset to the user at the end of 36 months continuous rental vs.
re-renting the equipment throughout its useful life. Detailed pro formas and
financial evaluations help HME providers make equipment decisions.

Designed by and for HME suppliers, the easy-to-use model compares oxygen
delivery options as well, including delivering oxygen concentrators plus
various sizes of oxygen cylinders for ambulation; liquid oxygen, a combination
system of an oxygen concentrator plus liquid oxygen; and use of an in-home
refillable cylinder system or portable oxygen concentrator system.

The updated model was presented for the first time at the Virginia HME
Alliance Meeting Jan. 29-30 in Richmond,
Va.

For more information, contact Strategic Dynamics Inc. at (480) 488-3639.

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