Independent Networks: Leveling the Playing Field

In a competitive environment, small O&P companies have often found it advantageous to join forces to gain more strength relative to large national and regional entities. Two such networks--OPGA, which recently merged with POINT, and PrimeCare--are profiled in this article. OPGA/POINT: Dynamic Duo Websters New World Dictionary, the benchmark reference tool for word aficionados, defines network (noun) as a group, system, etc., of interconnected or cooperating individuals. As a verb, network means to develop contacts or exchange information with others, as to further a career. The original purpose of networks in O&P was simple: to help independent practitioners work on the same level playing field that the multi-location nationals occupy. The Orthotic and Prosthetic Group of America (OPGA) SM , Waterloo, Iowa, was founded on that premise in 1993. However, almost immediately, at the request of members, it began to evolve into a member service organization that offers programs to assist with ancillary business functions. For example, OPGA, the countrys largest O&P network offers its more than 1,300 members: A nationwide managed care network which places 5,000 new referrals to its members monthly; Professional and comprehensive insurance coverages tailored for O&P practices; Business consulting services that focus on increasing revenues and decreasing expenses; Consulting that helps members determine if they're getting the best deal on a variety of telecommunications services, including long distance; Financial services, including a short-term revolving credit program that allows members to bundle purchases on one invoice and make one monthly payment, as well as leasing programs for larger equipment purchases; A business communications company that designs and prints everything from logos to letterhead and brochures to more complex corporate identity packages; Educational sessions on the new M.A.S. socket technology; An Internet company that offers services ranging from effective and affordable web design, to hosting and consultation on how to effectively manage and market members websites; Patient care clinics, during which patients are evaluated by outside guest clinicians who recommend needed services--host clinics can generate $100,000 to nearly $1 million in additional prosthetic revenues; and Manuals on topics that include facility accreditation, contract presentation, policy and procedures, diabetic risk management, and HIPAA. The most basic advantage alliances provide is volume pricing, negotiated by the network and based on the number of members who purchase from its preferred vendors. This can also mean more favorable terms or other perks, such as shipping discounts. However, networks in many industries have evolved from straight group purchasing organizations or buying alliances to offer services that help members be more successful at their businesses. OPGA has likewise evolved, and has recently merged with POINT Health Centers of America, headquartered in Dayton, Ohio. The merger brought together 1,300 independent O&P facilities in all 50 states, allowed the expansion of OPGAs highly successful managed care referral division, HOMELINK®, and helped the group gain access to additional local, regional, and national managed-care contracts. OPGA is very excited that POINT has agreed to join forces with us, which will allow us to do an even better job of helping independent O&P providers remain independent. Now that we have more than 1,300 member locations throughout all 50 states, this alliance will strengthen our purchasing power with O&P manufacturers and help us sign contracts with even more attractive pricing for our members. And alliances with some of the other O&P networks will allow OPGA/POINT to become even stronger. I couldn't be more pleased with our members unanimous support of the Boards recommendation to accept the merger proposal, said Tom Passero, CP, POINT president. Independent practices throughout the country now have an unprecedented opportunity to leverage our collective market dominance by uniting under the new OPGA/POINT organizational structure. I encourage all independent P&O facilities to join us in our effort to create a unified and effective member service organization. In today's highly fluid healthcare environment, independent practitioners who want to both survive and thrive should align themselves with a strategic alliance that can help with both the clinical and business aspects of an O&P practice. That's exactly why OPGA/POINT exists. OPGA President Jim Andreassen was introduced into the O&P field when Dennis Clark, CPO, of Dale Clark Prosthetics, Waterloo, hired him as business manager in April 1989. Through the acquisition process, Andreassen also served as area practice manager for NovaCare Orthotics & Prosthetics (March 1997) and as director of operations and area vice president for Hanger Prosthetics & Orthotics (July 1999). PrimeCare O&P: Expanding Services In 1997 managed care contracting was just beginning to gain a foothold in the southern United States, and forming a network to address this brave new world was a clear answer to the issues that arose for independent O&P facilities. At that time there were upwards of a dozen regional networks with similar missions: contracting and purchasing discounts. What We Offer Mentoring program: Our members have access to some of the best business minds in the field-other PrimeCare members. Upon request, we will match a member with a fellow member who can act as a sounding board and share materials and advice with a "mentoree" regarding an issue that they have dealt with successfully, without the concerns that their hard-won knowledge will be shared outside the "family." Marketing and public relations: PrimeCare assists members with marketing and public relations needs. While it is difficult for a business owner/manager to be proficient as a clinician, a financial manager, a personnel manager, and also a public relations expert, PrimeCare offers services such as press release preparation regarding news specific to our member facilities, and also customization of our downloadable O&P brochure, designed specifically for our members' use. Our website: includes all of our members and is easily navigated by medical and insurance professionals who want to locate a reliable, quality facility in a specific geographical area for referral purposes. In the past six months, the network has experienced a dramatic increase in both visits to the site and actionable referrals from Internet requests. Industry support: with the new capabilities of our website, we have launched a specific password protected member area, which includes our internal, member-driven listserve as well as an area for members to post and get feedback from other members on more immediate and pressing concerns and issues affecting them. When staff perceives a "critical mass" of postings on a certain topic, these postings can be summarized and brought to the attention of entities such as the American Orthotic & Prosthetic Association (AOPA). Rather than a lone practitioner reporting, we can summarize and forward comments, issues, and emerging information from dozens of business owners, managers, and practitioners to the appropriate venue-whether that is our staff, AOPA, or another entity. Manufacturing/supplier partnerships: While we have always cultivated relationships with manufacturers and suppliers, in 2004 we sought to expand that relationship and provide benefits beyond incremental sales increases due to the generous discounts our partners offer our membership. With the creation of our Manufacturers Advisory Board, we are working to create a partnership with our supporters that offers them more direct involvement with our membership, as well as assisting staff in keeping abreast of the market conditions and environment that affect the manufacturing and distribution aspects of the field. Specific troubleshooting: Our contracting services don't end with a signature on a contract-our contract administrator will get in the trenches with our members to ensure that they get proper, timely, and fair reimbursement when a problem arises. Regional/local contracting: In addition, over the past 18-24 months, we have seen the reemergence of local and regional contracting in our market area. Thus, PrimeCare's mission has expanded to include contracting services both nationally and in local contracting on behalf of any one specific member. Strategic Marketing, a marketing consulting company that I own and operate, along with three of the company's P&O clients, came to the realization that our marketing relationship and geographyTennessee, Arkansas, and Louisianacreated a perfect incubator for a southern regional network. At the same time, facility owners in Alabama were creating their own state network and made the decision to join forces with the newly emerged PrimeCare Network. PrimeCare now covers not only most of the southern US, but also serves members in the Northeast and Midwest. Although obtaining purchasing discounts was important, contracting with managed care organizations (MCOs) and other insurers was our primary focus, since most of our members were unfamiliar with managed care contracting. Also, "coverage area" was king in the contracting arena. Today, we still maintain our chief goals of contracting with payers and negotiating purchasing discounts for our members. However, PrimeCare, which is essentially a marketing entity, has continually reexamined and reevaluated our role as a network and our services to our membership. More Services, Increased Education PrimeCare has expanded our services into many areas that impact our members, with many of the new services resulting directly from member feedback. We feel that we have made great strides in the educational arena. Our sixth annual PrimeFare East meeting will take place at the Nashville, Tennessee, Convention Center June 24-25. Beginning in 1999 with two tracksorthotics and prostheticsour meeting has grown to incorporate technical, business, and pedorthic tracks, as well as traditional P&O tracks. PrimeFare includes the Ronney Snell Memorial Golf Tournament at Springhouse Country Club (June 23 this year), with profits being donated each year to a relevant community service. We also are in the evaluation process of creating a PrimeFare West meeting, most likely to be held in Utah's "skicountry" in early 2006, as our analysis shows that there is a need for our type of educational programs in the western states. The PrimeCare Network is not designed to directly earn money for our members or owners/founders. All income is channeled back into the network, growing our capabilities and coverage areas and improving service to members. Another example of non-traditional assistance we give is when members who are in charge of their state meetings need help with the planning process. After several requests for this type of assistance, Account Manager Jane Edwards put together a meetings planning manual, complete with helpful tips, which our members can access. A network of independent providers can be a powerful force for good-working on a larger scale for the benefit of all independent O&P providers and the industry as a whole, while it serves to assist with the day-to-day needs of each member. At PrimeCare, we stress the personal touch and never lose sight of the wishes and preferences of each of our members individually, while we strive to make a bigger difference in the industry overall. Catherine "Cathie" Griffith is president and CEO of PrimeCare Orthotics & Prosthetics Network, headquartered in Cordova, Tennessee. She also is president of Strategic Marketing Inc., Memphis, Tennessee, and has served as a marketing consultant to a number of regional orthotic and prosthetic providers nationwide, international manufacturers of O&P products, and other medical and healthcare professional groups and individuals. Contact her via e-mail: CeeGee96@aol.com

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