Re: hanger/linkia
Jim Andreassen
Description
Collection
Title:
Re: hanger/linkia
Creator:
Jim Andreassen
Date:
9/7/2006
Text:
Thank you Eric, for reminding everyone that competition is an American
foundation, and since the entrepreneurial spirit of independents has created
the service delivery system that currently provides around 75% of the
orthotics and prosthetics to the U.S. market, it seems logical that a lack
of understanding of market conditions is what could allow Hanger/Linkia to
dominate. I have read with great interest, the recent postings regarding
Hanger/Linkia and now feel it is time I put in my two cents worth. Although
this post is a bit lengthy, I believe it is of the utmost importance that
each of you on the list serve read it and form your own opinion...then the
choice is yours. This post is in no way meant to be a sales pitch but an
opportunity for everyone to make that choice and then to make a difference.
In order to make the correct choice for you, it is necessary that you have
all the facts.
Independents are now forced to re-evaluate their perception that the world
understands the quality of their professional services and because of that,
will offer them the opportunity to continue to provide these services at
traditional reimbursement levels. Economics forces tough choices when funds
available are not sufficient to purchase all needs. Competition on price,
while often brutal, is a fact of life. You are correct in recognizing that
networks are a viable strategy for independents to compete with Linkia.
OPGA, is a nationwide network of more than 1,100 independently owned and
operated orthotic and prosthetic facilities. These companies have joined
together to better compete in the ever-changing health-care environment.
Since 1993, OPGA's original mission has been to help members receive
manufacturer discounts similar to those received by multi-national
companies. Such discounts provide you the opportunity to remain independent.
However as the needs of the independent changed, OPGA has more recently
evolved into a member service organization offering numerous other benefits
including Buying group discounts from 40 manufacturers and access to
HOMELINK - our managed care contract division. OPGA is owned by VGM, which
also purchased the provider-owned POINT Health Centers of America network in
2004.
The POINT network was founded by a proactive group of independent facilities
in 1996 who recognized the economic pressures of the healthcare industry
would force consolidation and reimbursement reductions, requiring
independents to lower their costs through economies of scale and through
technology. More efficiency was absolutely required due to the
ever-increasing administrative burden of operating an independent practice.
Paramount in accomplishing these objectives is the need for
state-of-the-art information technology and information management
systems. Because these skill sets and programs already existed in-house
within the VGM group of companies, POINT owners determined they would be
better positioned by seeking an affiliation with VGM. HOMELINK is the
Managed Care Contracting and Billing Administration division for the VGM
network. HOMELINK also administers billing for O&P managed care contracts
accessed by both the OPGA and the POINT divisions. POINT's mission statement
has remained the same, post integration into OPGA.
To provide select, ABC-accredited, independently owned orthotic and
prosthetic facilities a vehicle to compete and prosper in today's rapidly
changing healthcare environment thru participation in a national network of
facilities which purpose is to obtain and retain capability to provide top
quality orthotic and prosthetic services to patients in need while
continually improving operational efficiency and cost effectiveness.
The OPGA/POINT objectives are exactly what Eric suggests in his post and are
the expressed mission.
The tireless efforts of the OPGA/POINT network founders to build and
maintain a network of independents created a vehicle that is now poised to
benefit many of their colleagues who did not foresee or accurately predict
the changes in the O&P industry. Linkia's recent success in extracting
important market share from independents and the upcoming plans for
competitive bidding on the Medicare front, indicate the time for
independents to network in order to better compete has arrived.
The work is begun, but not completed. POINT currently has 235 ABC-accredited
locations. Combining OPGA and POINT now accounts for more than 1,300
independent orthotic and prosthetic locations compared to Hanger's 600+.
Independents have wanted the network to get the contracts BEFORE they join,
again wanting someone else to lead the effort then participate AFTER
benefits are received. Although they would independently be unable to get a
managed care contract directly from a payer prior to actually having a
service facility location, they somehow believe the network should be able
to do it. You don't get a free ride. You should not expect to just pay some
Member dues and automatically reap the benefits. We are a young organization
and the Members have to participate, communicate, cooperate and give
meaningful feedback on the organization's performance for continuous
improvement. We need to capitalize on the data and information systems
expertise we have available to succeed. Clinician input will be essential in
developing the correct outcome measures and data to assemble. Likewise, once
deciding to participate, Members need to resist offers to break rank with
the Network strategies on contracting and purchasing in order to gain
short-run more favorable terms. These network-busting measures are a
tactic to prevent the Network from achieving the goals you want it to
accomplish. To succeed, the Network needs symbiosis with the Independent
Facilities. I don't believe this can be achieved by cooperating with an
entity that competes with you.
Active participation by a handful of independents is the reason this network
is here for you today. Our industry is plagued by participants who fail to
fully educate themselves on all the critical aspects of their field yet are
still willing to complain when they don't like the outcome for their
business. Independents (who by the way still dominate the industry in
numbers) have allowed Hanger to fund all the legislative efforts, dominate
the donations to the patient organizations, trade organization,
credentialing organization, etc; Independents will purchase supplies from
Hanger/SPS, service contracts through OPNET or Linkia; and then cry unfair
when they lose industry control and market share to companies that are not
able to match the high quality of O&P services that Independents are best
capable of providing.
The time to be educated and get involved is NOW. You must compete!
Independents do need to look carefully at the market conditions of their
industry. To unite in a network is one strategy available to include in
your business plan. The network will not alleviate your need to continue to
be active in knowing your industry and making appropriate choices to
ensure you don't give your business to a lesser provider by failing to
understand the implications of business decisions you make.
CIGNA claims it has undertaken this Linkia contract initiative in response
to a need to control its costs. While I disagree with the wisdom of CIGNA's
move and its active participation in encouraging Independents to service
patients via a competitor that aims to capture market share for itself at
the expense of Independents, the choice of not following the wrong gods
home is up to the Independent provider delivering services to Members.
Independents are free to choose if they will service CIGNA insureds when no
alternative service avenue is given, just as independents also make the
choice whether they will purchase supplies through SPS, thereby supporting
the profitability of an entity bent on taking away their market share. The
competitive strategy pursued by each Independent practice is a choice. I
hope all Independents will see the whole picture, check out the OPGA/POINT
networks and become actively participating Members.
WE HAVE AN OPPORTUNITY TO MAKE A CHANGE NOW, but we must all band together
to make it happen.
Jim Andreassen
President, OPGA/POINT
-----Original Message-----
From: Eric Eisenberg [mailto:<Email Address Redacted>]
Sent: Tuesday, September 05, 2006 6:07 AM
To: <Email Address Redacted>
Subject: [OANDP-L] hanger/linkia
hanger has 600+ locations OPGA has 1200 locations. Why doesn't OPGA compete
with Hanger if all band together OPGA could get bigger discounts and compete
for insurance contracts?
Just my two cents.
Eric S. Eisenberg M.S.;C.P.O.
foundation, and since the entrepreneurial spirit of independents has created
the service delivery system that currently provides around 75% of the
orthotics and prosthetics to the U.S. market, it seems logical that a lack
of understanding of market conditions is what could allow Hanger/Linkia to
dominate. I have read with great interest, the recent postings regarding
Hanger/Linkia and now feel it is time I put in my two cents worth. Although
this post is a bit lengthy, I believe it is of the utmost importance that
each of you on the list serve read it and form your own opinion...then the
choice is yours. This post is in no way meant to be a sales pitch but an
opportunity for everyone to make that choice and then to make a difference.
In order to make the correct choice for you, it is necessary that you have
all the facts.
Independents are now forced to re-evaluate their perception that the world
understands the quality of their professional services and because of that,
will offer them the opportunity to continue to provide these services at
traditional reimbursement levels. Economics forces tough choices when funds
available are not sufficient to purchase all needs. Competition on price,
while often brutal, is a fact of life. You are correct in recognizing that
networks are a viable strategy for independents to compete with Linkia.
OPGA, is a nationwide network of more than 1,100 independently owned and
operated orthotic and prosthetic facilities. These companies have joined
together to better compete in the ever-changing health-care environment.
Since 1993, OPGA's original mission has been to help members receive
manufacturer discounts similar to those received by multi-national
companies. Such discounts provide you the opportunity to remain independent.
However as the needs of the independent changed, OPGA has more recently
evolved into a member service organization offering numerous other benefits
including Buying group discounts from 40 manufacturers and access to
HOMELINK - our managed care contract division. OPGA is owned by VGM, which
also purchased the provider-owned POINT Health Centers of America network in
2004.
The POINT network was founded by a proactive group of independent facilities
in 1996 who recognized the economic pressures of the healthcare industry
would force consolidation and reimbursement reductions, requiring
independents to lower their costs through economies of scale and through
technology. More efficiency was absolutely required due to the
ever-increasing administrative burden of operating an independent practice.
Paramount in accomplishing these objectives is the need for
state-of-the-art information technology and information management
systems. Because these skill sets and programs already existed in-house
within the VGM group of companies, POINT owners determined they would be
better positioned by seeking an affiliation with VGM. HOMELINK is the
Managed Care Contracting and Billing Administration division for the VGM
network. HOMELINK also administers billing for O&P managed care contracts
accessed by both the OPGA and the POINT divisions. POINT's mission statement
has remained the same, post integration into OPGA.
To provide select, ABC-accredited, independently owned orthotic and
prosthetic facilities a vehicle to compete and prosper in today's rapidly
changing healthcare environment thru participation in a national network of
facilities which purpose is to obtain and retain capability to provide top
quality orthotic and prosthetic services to patients in need while
continually improving operational efficiency and cost effectiveness.
The OPGA/POINT objectives are exactly what Eric suggests in his post and are
the expressed mission.
The tireless efforts of the OPGA/POINT network founders to build and
maintain a network of independents created a vehicle that is now poised to
benefit many of their colleagues who did not foresee or accurately predict
the changes in the O&P industry. Linkia's recent success in extracting
important market share from independents and the upcoming plans for
competitive bidding on the Medicare front, indicate the time for
independents to network in order to better compete has arrived.
The work is begun, but not completed. POINT currently has 235 ABC-accredited
locations. Combining OPGA and POINT now accounts for more than 1,300
independent orthotic and prosthetic locations compared to Hanger's 600+.
Independents have wanted the network to get the contracts BEFORE they join,
again wanting someone else to lead the effort then participate AFTER
benefits are received. Although they would independently be unable to get a
managed care contract directly from a payer prior to actually having a
service facility location, they somehow believe the network should be able
to do it. You don't get a free ride. You should not expect to just pay some
Member dues and automatically reap the benefits. We are a young organization
and the Members have to participate, communicate, cooperate and give
meaningful feedback on the organization's performance for continuous
improvement. We need to capitalize on the data and information systems
expertise we have available to succeed. Clinician input will be essential in
developing the correct outcome measures and data to assemble. Likewise, once
deciding to participate, Members need to resist offers to break rank with
the Network strategies on contracting and purchasing in order to gain
short-run more favorable terms. These network-busting measures are a
tactic to prevent the Network from achieving the goals you want it to
accomplish. To succeed, the Network needs symbiosis with the Independent
Facilities. I don't believe this can be achieved by cooperating with an
entity that competes with you.
Active participation by a handful of independents is the reason this network
is here for you today. Our industry is plagued by participants who fail to
fully educate themselves on all the critical aspects of their field yet are
still willing to complain when they don't like the outcome for their
business. Independents (who by the way still dominate the industry in
numbers) have allowed Hanger to fund all the legislative efforts, dominate
the donations to the patient organizations, trade organization,
credentialing organization, etc; Independents will purchase supplies from
Hanger/SPS, service contracts through OPNET or Linkia; and then cry unfair
when they lose industry control and market share to companies that are not
able to match the high quality of O&P services that Independents are best
capable of providing.
The time to be educated and get involved is NOW. You must compete!
Independents do need to look carefully at the market conditions of their
industry. To unite in a network is one strategy available to include in
your business plan. The network will not alleviate your need to continue to
be active in knowing your industry and making appropriate choices to
ensure you don't give your business to a lesser provider by failing to
understand the implications of business decisions you make.
CIGNA claims it has undertaken this Linkia contract initiative in response
to a need to control its costs. While I disagree with the wisdom of CIGNA's
move and its active participation in encouraging Independents to service
patients via a competitor that aims to capture market share for itself at
the expense of Independents, the choice of not following the wrong gods
home is up to the Independent provider delivering services to Members.
Independents are free to choose if they will service CIGNA insureds when no
alternative service avenue is given, just as independents also make the
choice whether they will purchase supplies through SPS, thereby supporting
the profitability of an entity bent on taking away their market share. The
competitive strategy pursued by each Independent practice is a choice. I
hope all Independents will see the whole picture, check out the OPGA/POINT
networks and become actively participating Members.
WE HAVE AN OPPORTUNITY TO MAKE A CHANGE NOW, but we must all band together
to make it happen.
Jim Andreassen
President, OPGA/POINT
-----Original Message-----
From: Eric Eisenberg [mailto:<Email Address Redacted>]
Sent: Tuesday, September 05, 2006 6:07 AM
To: <Email Address Redacted>
Subject: [OANDP-L] hanger/linkia
hanger has 600+ locations OPGA has 1200 locations. Why doesn't OPGA compete
with Hanger if all band together OPGA could get bigger discounts and compete
for insurance contracts?
Just my two cents.
Eric S. Eisenberg M.S.;C.P.O.
Citation
Jim Andreassen, “Re: hanger/linkia,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 2, 2024, https://library.drfop.org/items/show/227259.
