Salesforce Solution Boosts Sales Productivity by 13%, Revenue by 20%

American HomePatient, a top 5 largest diversified home healthcare provider, supplies home medical products and services to over a million patients. While similar companies shifted to aggressive cost-cutting following 2010 healthcare law changes, American HomePatient transitioned focus away from cost reduction to top line growth. They partnered with Virsys12 for the technology to drive their model because of Virsys12’s proven experience with Salesforce, mobile and healthcare data management. Year one results included 13% increased productivity and 20% revenue increases compared to industry average of 3-5% industry wide.

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A home healthcare services company looks for ways to grow the top line.

Founded in 1983, American HomePatient is one of
the nation’s top 5 largest diversified home healthcare providers, supplying home medical products and services to over a million patients, with over 2,200 employees in more than 250 locations across the United States. The company is one of the leading providers of oxygen and CPAP therapy.

Healthcare’s challenging reimbursement environment after 2010 led most similar companies to adopt an aggressive cost-cutting business model. However, when Mark Lamp took over as President and CEO of American HomePatient in January 2014, he determined this wasn’t a sustainable path for the company. A culture change was in order, one that would involve transitioning the focus away from cost reduction to top line growth.

Increased market share requires higher productivity in the end.

American HomePatient’s leadership began to put in place necessary elements to support the new business orientation, including a list of “vital few” objectives. First on the list was increasing market share through three primary mechanisms: introducing new products, expanding the sales staff and territories, and making sales staff (called “account executives”) more productive.

At American HomePatient, providing quality and compassionate customer service—to hospitals, insurance companies, and the patients themselves—is critical to account executives’ success.

“Virsys12’s process was very easy for us to adapt to, and it kept us on track. The entire project was developed on time and we were impressed.” – Mark Lamp, President and CEO American HomePatient

Enabling them to be more customer-service focused would require improved processes as well as improved efficiency, including minimizing the office time spent looking for key information or sales opportunities. This would require new technology and healthcare data management solutions like Salesforce.

Through an RFP process initiated in November 2014, Salesforce was selected as the clear winner over four competitive options.

“Salesforce was the most robust platform in terms of features and functions,” comments Lamp. “It also had a reasonably mature mobile platform, and it was the most scalable.”

One deciding factor that figured into American HomePatient’s selection of Salesforce was the inclusion of Virsys12, Tennessee’s largest Salesforce Consulting Partner, which Salesforce brought in as part of their pitch presentation. The combination was compelling.

“Virsys12 was an important asset because they had the proven experience with the product, mobile and healthcare. We had great confidence in their ability to implement and execute,” Lamp remarks.

Customization, training, and implementation expertise bridge technology and need.

Virsys12 collaborated with American HomePatient continuously for input and adjustments to the Salesforce solution as implementation began in 2015, using a process of quick-turnaround “sprints” based on American HomePatient’s specifications.

“Virsys12’s process was very easy for us to adapt to, and it kept us on track,” affirms Lamp. “The entire project was developed on time. We were impressed.”

In April 2015, Virsys12 and American HomePatient piloted COACH with about 10% of the sales organization.

Virsys12 team members provided training and ongoing best-practice advice during the pilot and throughout the company-wide rollout to more than 200 additional locations in July.

The strategy is adding up, with a 13% increase in productivity and a 20% increase in product revenue.

Results were impressive. Lamp reports that the pilot group generated a 13% improvement in productivity as compared to the rest of the sales team, and he sees the trend continuing as the full team documents results using COACH. He’s also pleased to note that as of July, year-over-year top line revenue for both oxygen and CPAP is up approximately 20%, compared to 3-5% in the industry as a whole.

American HomePatient team members are actively sharing successes and best practices for Salesforce, from the visibility of healthcare data to task simplification to greatly improved customer responsiveness. As one account executive shares,

“Having updated referral and account information in the palm of my hand gives me the confidence to go in more effectively and efficiently—ultimately, increasing success in my market.”

Next on American HomePatient’s technology horizon for Salesforce solutions are enhanced features to the system, broader patient management on mobile, and follow-up programs. With an ongoing commitment to bridge technology and need,

Virsys12 will be happy to travel that path with them.

Lincare Holdings Inc., a US subsidiary of industrial gas and engineering company The Linde Group, successfully closed the acquisition of fellow US company American HomePatient, Inc., 2/2/16.

“Virsys12’s process was very easy for us to adapt to, and it kept us on track. The entire project was developed on time and we were impressed.” - Mark Lamp, President and CEO

Virsys12’s customized solution for American HomePatient (internally called COACH) included:
1. Salesforce integration with the existing order entry system: allowing near-time access to current order status on mobile devices
2. Salesforce integration with third-party databases: allowing improved targeting and identification of the most productive locations on a real-time basis
3. Salesforce integration of their customized sales processes and work flow, including a metrics based sales management process
4. Robust and timely production reporting