Notes from Monetizing Home Mods Meeting June 15, 2015

MONETIZING HOME MODIFICATION BUSINESS

JUNE 15, 2015 VIRTUAL MEETING

MEETING NOTES

GUEST SPEAKER - SCOTT ANDERLE

Scott is a physical therapist who owned 13 PT clinics, then founded a business called Specialized Home Design, focused on universal accessible design.  In his journey to modify homes, he became a coordinator and consultant for home modifications.  In his role as a consultant, Scott evaluated homes and made recommendations for home modifications.  In his role as a coordinator, Scott worked with case managers and brought in contractors and architects. 

Scott then invented Comprehensive Home Evaluation Report (CHER) - an online tool for home evaluations.  This is a powerful home evaluation tool that supports information fill-in and embedded pictures and compiles a finished report from the data.  The CHER can be found at: http://www.shdesigns.net/cherreg

(Note from Karen:  Scott’s tool is more comprehensive than Carolyn Sithong’s tool.  Scott’s tool is appropriate for complex home evaluations that need to be very detailed for other professionals and even litigation purposes.  Carolyn’s tool is more appropriate for aging-in-place evaluations where your recommendations are more for lay people and you don’t have large amounts of time to spend.  Both are great tools for their applications.)

Scott then became a national speaker teaching home modifications.  He was a speaker for 2 years but decided to make a change to cut down on the rigors of travel.  Scott considered several new business opportunities among his network of professional contacts.

Scott decided to partner with Williams Distributing to open a new business called Home Living Experts (HLE).  Williams Distributing is a large distribution channel that sells wholesale to contractors and remodelers.  Home Living Experts (HLE) is a division of Williams organized as a one-stop shop for Universal Accessible Design for the home.  Williams Distributing/HLE has 3 large showrooms of Universal Accessible Design bathrooms and kitchens.  Through HLE, Scott provides home assessments, coordinates projects, and provides fixtures.  HLE has an online catalog with universal design fixtures.  Soon, Scott will be releasing a 90-second video of the showroom’s adaptive living area.

DISCUSSION

Starting out in business.  For those just starting their businesses, Scott recommends getting well organized first.  Be sure you understand:

• Who are the players and what are their roles.
• In-depth knowledge of specialty products.
• Basic space relationships for working with assistive devices.

Scott developed 3-online courses to support learning the home modifications business.  These online courses qualify for CEU’s for OTs, COTAs, PTs, and PTAs.  The courses include:

• ABC’s of home modifications
• Specialty products
• How to do a home evaluation

Scott’s online courses are at: http://www.shdesigns.net/seminars

Scott also offers a 3-hour 1 on 1 class.   Conducted via the phone or skype, Scott discusses what is involved in home modification business and what you need to develop a home modification business.  During the meeting, you work on a business strategy so you leave the meeting with a strategy on paper.  The cost for this class is $540.00.

How much does it cost to start a home modification business? 

• Scott answered that it depends on how much you want to spend.  If you have the opportunity, you can rent an office, buy office equipment, etc., and spend $10,000-$20,000 to start.
• Most people start part-time to decide if this is something they’d really like to do.
• It is very important to write a business plan for a period of 12-18 months.  Figure out projected revenue and costs and try to stick to your goals.
• Develop and implement a marketing strategy for your business. 

(Note from Karen: It's beneficial to create a revenue stream and build your business on that so you make money before you spend money.  Either way, make sure you invest your time in a business plan.) 

3 hats that a home modifications business person wears:

• Financial.
• Subject matter skill set.
• Marketer.

Marketing:

• Scott recommends these marketing approaches: booth at case manager meetings or seminars, one-on-one meetings, email marketing, telephone.
• Scott highly recommends keeping an Excel spreadsheet to keep detailed records of all your contacts with people and what you talked about.  These records are valuable.
• Avoid radio and TV unless you really know what you’re doing in these mediums.  Scott spoke with someone who advertised on radio and TV for 1 year spending $2,500 per month and felt as though they may have just broken even on cost:benefit.

What Medicare reimbursement codes are appropriate for home evaluations?

• When working as a consultant, Scott doesn’t use reimbursement codes.  He bills for a home assessment consultation, not as a medical practitioner.  He doesn’t touch the client/patient physically.  He has the patient sign a HIPPA form, then speaks with their physicians and therapists, if needed.
• As a consultant, Scott offers 3 types of evaluations:  full home assessment, partial home assessment, cursory summary.
• For Medicare reimbursement codes, services must be reasonably necessary, and you can bill for more than 4 units (unit is 15 minutes).  Check with the billing department.  Appropriate CPT codes: 
• 97535 - self-care management (ADLs, safety, home management, meal prep., adaptive equipment).
• 97537 - community reintegration.

Why use the term Universal Accessible Design instead of Universal Design? 

Universal design is based on the 7-principles of universal design to make a space usable to a wide variety of people.  Accessible design focuses on the individual situation and specific functional needs.  When designing for a functional need with specific accessibility features, also applying principles of "universal design" allows for more flexible adaptability for other needs later. 

How long should an evaluation be?

An evaluation takes as long as necessary to paint a picture of the situation and the needs.  It is important to include several photos to increase understanding and provide evidence to support your recommendations.  Scott’s assessments usually include:

• Snap shot of the client.
• Physical and functional status.
• Considers everything inside and outside the home, starting with the mailbox!
• Includes several photos.

What products do you recommend?

Highly recommends the Tuff-form fiberglass shower base for roll-in showers.  The base allows for a roll-in shower without having to alter the floor joists.  It comes in a variety of sizes, has a lifetime guarantee, and you can tile over it easily.

COMMUNITY BUSINESS

Many favorable comments were made about the value of this meeting for our group.  One person mentioned she is using the CHER tool and finds it excellent. 

If anyone has suggestions for meeting topics or speakers or would like to organize one of our meetings, please let Chris or Karen know. 

Maher and Chris will send out survey results and information about the subgroups to get us started.

We have been meeting every other Monday.  To make scheduling easier, we agreed in this meeting that the future meetings will be 1^st and 3^rd Mondays of every month.  We will continue with 8:00pm Eastern Daylight Time for now.  So, the next meeting will be on July 6.  (Note that there will be no meeting on June 29.)  Upcoming meetings after that will be July 20, August 3, August 17, September 7, September 21. 

If anyone would like to meet on June 29^th to discuss a certain topic or a project they are working on I would be more than happy to meet and open the meeting to anyone who is interested.

Onward,

Karen