Software Provides Comparison Data for Home Oxygen Delivery
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.
This article originally appeared in the February 2007 issue of HME Business.