The health care industry has certainly had its fair share of ailments to cope with over the past year. With a government shutdown topping the long list of offenses, courtesy of nationwide debate over the Affordable Care Act, many are taking a guarded approach in 2014. Could this spell trouble for an otherwise stable sector? Not if Jim Magdaleno has anything to say about it.
According to Magdaleno, health care product manager for TFP Data Systems, Oxnard, Calif., distributors are in luck. The commonly used CMS-1500 medical billing form recently got a facelift, which means the existing documentation is being phased out to meet an April 1 deadline.
Because billions of these forms are filed each year, Magdaleno said that TFP Data's reseller partners enjoy a spike in sales any time a revision is made. To keep its partners informed, TFP Data created a print advertisement containing important information about the new (02/12) CMS-1500 Health Insurance Claim Form.
Here, Magdaleno shares the thought process behind the company's latest promotional tool.
Print+Promo (P+P): Describe a promotion of yours that you consider one of TFP Data's best.
Jim Magdaleno (JM): The CMS-1500 medical billing form was recently revised by the Centers for Medicare and Medicaid Services. TFP Data Systems, the designated provider of the form, worked with the government agencies on the revisions. When the final transition timeline was released, we developed a print ad that accomplished two goals:
- Promote the significant sales opportunity that always accompanies a mandatory change, as all health care providers transition to the new form.
- Create a sense of urgency by informing distributors about the transition timeline.
P+P: What items were featured in this promotion, and what influenced that decision?
JM: The advertisement prominently featured the CMS-1500 medical billing form along with a bold, easy-to-read timeline.
P+P: How was this a profitable promotion for your company? For your distributor clients?
JM: Since the advertisement began running, we have received an average of 15 to 20 calls a day from laboratories, doctor's offices, clearinghouses, EDU hospitals and medical facilities of all kinds. As TFP does not sell direct, we have been presenting these leads to our reseller partners, providing a new sales opportunity for them.
P+P: Did you encounter any challenges with this particular promotion?
JM: We anticipated a significant sales increase in fourth quarter 2013. However, this didn't happen. Instead, it seems medical customers were waiting for the January date when insurance carriers began accepting the new form. Sales are now soaring, and this is the perfect time for distributors who have health care customers to begin offering this form.
P+P: Do you have any advice for distributors interested in selling to the health care market? Are they easily intimidated by all the paperwork, frequent revisions, new laws, etc.?
JM: The CMS-1500 is revised approximately every five to seven years. So this is not an opportunity that comes along every day. If you have health care customers, you should be selling this form. It's an easy sell because the form is mandatory. If health care providers accept insurance, they must use this form to get paid. If you already offer this form, now is the time to get the word out to customers.
P+P: Is there anything you would like to add?
JM: We are always looking for new partners, and we have an established set-up process to get you up and running quickly and easily. As the final transition deadline isn't until April 1, there is still ample time to take advantage of this opportunity.