Articles

FleetTraks GPS System Seeks to Improve Delivery for Oxygen Providers

September 14, 2007

As providers undergo the competitive bidding process, one thing has become clear: Savvy oxygen providers must understand their costs for doing business to succeed in today's reimbursement environment.

Enter GPS tracking.

The delivery model for oxygen is expensive both in manpower and fuel consumption, but On-Board Communications, manufacturers of FleetTraks, says its GPS system can help providers understand their costs, improve efficiencies and possibly save them money.

"There's only so many places that providers can go to get more money out of what they have," says Robert Wagner, an On-Board Communications representative and HME provider in Wexford, Pa. "You can't squeeze the suppliers anymore. Everything is over in China. You're not going to get more help from Medicare or your payors. You have to find efficiencies in house."

The Web-based system tracks the delivery fleet through real-time dots on a map. It generates reports that show when a truck stops and starts so providers know where the vehicle is at all times, and it also monitors drivers' speeds. Reports can be generated on individual vehicles, and providers can track mileage data to better understand delivery costs.

Wagner says the system saves money in three ways: by reducing payroll, by reducing mileage and by increasing sales.

When vehicles are tracked, providers who use the system say their days begin to move faster because drivers are more accountable for their time. Also, GPS tracking allows providers to monitor mileage and route logistics. Paying closer to attention to mileage translates into less overtime for delivery personnel. Managers can use the system's route audits to improve efficiency. Overall, Wagner says, providers using the system are significantly reducing their overall mileage per month — by around 10 percent.

Plus, unexpected deliveries can be quickly assigned to the closest driver to maximize efficiency.

"We're hearing on a regular basis what happens when providers have real-time information as to where the vehicles are," says Wagner. They are "able to assign the most logical vehicle to the event. The other thing that happens is if there is any unauthorized use of the vehicle, it's eliminated."

Wagner stresses that FleetTraks is not a "big brother tool." Providers are saying "we need it because of all of the pressures that are behind us right now with competitive bidding," he says. "We are sure that the insurance companies are going to follow the trend of the new rates that come out with Medicare, and we have all of these other pressures coming at us. … It does take the good guys and make them better. We've got documented situations there. But by the way, if you're doing some things that are wrong out there, we're going to see it and we're going to give you an opportunity to get back on track."

Though it's difficult to document that the program increases sales, Wagner acknowledges, providers are seeing that by tightening up delivery routes, they are able to make more deliveries.

"Once the day tightens up and things start to move faster and you're running fewer miles out there and you've got the same number of vehicles and the same number of drivers, you all of a sudden have more capacity and more room in your vehicles to be able to drive more sales through the same existing fleet," he says.

Other tracking measures help providers prepare for the accreditation process.
"One of the things that is a requirement of accreditation is a system to monitor the maintenance of your vehicles," says Wagner. "Our system here will monitor the maintenance."

The program tracks vehicle mileage so providers can keep tabs on when oil changes and tire rotations are necessary.

GPS tracking also helps the environment, says Larry Simmons, On-Board Communications' vice president of marketing. "A gallon of fuel emits about 20 pounds of harmful emissions into the atmosphere," he says. "So, for every gallon you save, you're reducing harmful emissions in the atmosphere."

On-Board Communications, based in Dallas, recently partnered with MedFORCE Technologies to integrate GPS data into the new version of MedFORCE 5. GPS data travels seamlessly into the patient's files to validate delivery, says Wagner. The company also has partnered with VGM.

Stop by Booth #2471 at Medtrade to see a demonstration. Visit www.hmegps.com for more information.