Home Health & Hospice Week

Marketing:

5 Places To Look For New Referrals

Don't miss these surefire markets hiding right under your nose.

Would you like to grow your business significantly in the coming year and keep referrals rolling in? If so, you aren't alone, and your competitors may already be one step ahead - here's how to catch up.

Many home care providers call on consultant Alison Cherney with Brentwood, TN-based Cherney & Associates for help when their sales programs aren't producing the results they expected. The most common culprit, according to Cherney: lack of training for sales representatives.

"People don't want to spend the money on training," but they are taking money out of their own pockets by failing to train up an effective sales force, Cherney tells Eli.

Home care organizations including home health agencies, home medical equipment and respiratory companies, orthotics and prosthetics suppliers, infusion providers and private duty agencies often hire clinical folks with no sales background or sales people with no clinical knowledge as sales reps, then "throw them in" and expect them to fill in their deficits on their own, she relates.

That leads to ineffective sales reps who can snag a few customers from the usual referral stream, "but who aren't as successful at converting new business," she warns.

What to do: Like clinical new hires, sales new hires need mentoring and coaching to become successful players on your company's team, Cherney advises. They should learn these three important aspects of your business if you expect them to represent you well to your potential referral sources and customers:

  • your industry, including lingo and acronyms, and how it works;

  • the clinical aspects of your business; and

  • selling skills.

    And they need to know where to find new business, perhaps by looking in some surprising places. In her new training course, "Homecare Power Selling: The Key To Unlocking Your Sales Potential," Cherney suggests tapping these markets to grow existing business and cultivate new business:

    1. Physician offices. Physicians "are among the most important customers to homecare businesses" because they write the orders for home nursing, HME, infusion and most other home care products and services, Cherney notes in the manual. "Many homecare companies have built their businesses on a very limited number of high-referring physicians."

    But physicians are busier than ever these days, and home care reps may have a hard time bending their ear. To get in good and cement or generate new referrals, you can tap other physician practice staff who may be decision-makers or at least decision-influencers in the home care referral process.

    In larger practices, the business manager or other senior executive may be involved in choosing to whom referrals go, Cherney points out. Make sure to target your sales message to their business-oriented mindset.

    On the other hand, if a nurse in the office influences the decision, he may be more interested in your clinical capabilities. In some physician practices, it's the front office staff who coordinate home care referrals and influence the referral decision, Cherney explains. Craft your sales pitch there to emphasize ease of administration - for instance, emphasize it if you admit patients seven days a week and respond quickly to referrals.

    2. Hospitals. Home care companies often are used to interacting with hospital discharge planners to secure referrals. Like front-office staff, they want quick responses to referrals. They also like agencies that take all payer types, take a certain number of non-desirable or charity patients, and that provide feedback to help avoid hospital readmissions, Cherney notes in the manual.

    But home care companies may be missing out on a huge business opportunity if they fail to pick up on the latest hospital trend. Home care business has become less attractive financially for hospitals to run (see p. 32), and hospitals may be looking for a home care provider to manage, purchase or jointly own a hospital-owned home care business, Cherney says.

    In trying to win such a contract or negotiate a joint venture or purchase, you'll need to convince senior hospital execs: CEOs, COOs, CFOs, medical directors and other senior managers.

    3. SNFs. There are an estimated 16,000 skilled nursing facilities in the nation, and most of them make home care referrals regularly. As with hospitals, home care sales reps should target SNF discharge planners, Cherney says. Winning over the SNF administrator is also a good way to generate referrals, especially if the facility is seeking a preferred provider relationship in home care.

    4. Long-Term Care. LTC referrals shouldn't stop with nursing homes. U.S. assisted living facilities number an estimated 25,000, and their residents often need services and equipment to support their activities of daily living, Cherney notes. But home care providers must carefully abide by federal and state regulations prohibiting kickbacks and other illegal arrangements, legal experts warn. ALFs are known under a variety of names, from residential care facilities to community living facilities.

    Residents of continuing care retirement communities also often need home care services and products, Cherney says. CCRCs offer a range living options on one campus.

    5. Home care. Don't forget other home care companies when it comes to capturing referrals. Patients who use one type of home care service or item often also need services from other types of home care providers. For example, a patient needing skilled nursing care is also likely to need HME.

    "A common frustration that many referral sources have with homecare is that multiple companies may be needed on a case and there is not always a tight coordination between the companies," Cherney points out. Offering that coordination to referral sources can be a big selling point.

    Charge nurses for HHAs, infusion companies and long-term care companies often will make referral decisions. Marketing managers, sales directors and senior executives for all home care providers are most likely to form partnerships.

    Editor's Note: Information on Cherney & Associates' training course is available at www.cherneyandassociates.com/trainingcourse.html or by calling 1-615-776-3399.