Thursday, February 5, 2009

Medical Oxygen Wakeup Cost Reduction C

Several suppliers in the U.S. are now offering innovative remote filling services for truck mounted medical liquid oxygen delivery vessels. A few are actually meeting delivery trucks in the field and providing a sort of “in-flight refueling” service that allows homecare oxygen providers to extend their work day without a trip to their main bulk oxygen supplier for refilling. Other suppliers are going to their homecare liquid oxygen delivery client's sites and filling their trucks after hours so that drivers are able to go straight out on their routes in the mornings.

This is a true “value add” arrangement providing the best of both worlds with increased revenue generated for both the bulk or mini-bulk supplier and the homecare oxygen delivery company getting filled. Granted, there is no free lunch and both parties have cost benefit decisions to make related to return on investment and potentially higher direct costs for liquid oxygen. The potential off-set is savings generated from reducing Waiting Time, Transportation, and Talent wastes.

There is a funny twist for cryogenic tank manufacturers in this Cost Reduction series pointed out by a friend: “The more efficient companies become the less need there is for new delivery vessels.” Sure. This is true. Likewise- the more cost-effectively homecare companies can operate the more viable liquid oxygen remains as a solution for respiratory patients and providers.