Latest / Earn Your Leisure / How To Build a Medical Equipment Business
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- 1:13Speaker 3: Today, you're doing good with the recruiting business. How long
- 1:18Speaker 3: is that your main focus before you start another business.
- 1:21Speaker 4: So the reason so I started this second business because
- 1:25Speaker 4: I wanted something tangible, something that if I'm not working,
- 1:29Speaker 4: like right now, I'm not working working per se, it
- 1:32Speaker 4: can still make money for me. And I was in
- 1:34Speaker 4: a com in two thousand and eight, and you're in
- 1:37Speaker 4: a transition from I was in California at the time.
- 1:39Speaker 4: During a transition from California to Florida, I wanted to
- 1:43Speaker 4: be home with my family. And you have to read
- 1:47Speaker 4: the book for that's that's one that they tell all
- 1:50Speaker 4: in the book.
- 1:51Speaker 1: So yes, got it.
- 1:55Speaker 4: So when I was transitioning, I was wheelchair bound. My
- 1:58Speaker 4: larnix was clipped so you can hear me speak. And
- 2:02Speaker 4: the flight attendant escorted me off the aircraft and placed
- 2:06Speaker 4: me in a corner and I waited there, and I
- 2:08Speaker 4: was there for three hours, trying to signal someone because
- 2:11Speaker 4: they can hear me talk. And I cried, and I
- 2:13Speaker 4: saw people just kept walking by me, and I tried
- 2:16Speaker 4: and tried, and you cannot hear me. And finally a
- 2:19Speaker 4: young girl came over and she helped me. And when
- 2:22Speaker 4: that happened, I realized that the disabled was not cared for.
- 2:26Speaker 4: They were invisible to the world. And after I recovered
- 2:29Speaker 4: from the coma, I decided to start a medical equipment
- 2:31Speaker 4: business because I never want anyone else to feel the
- 2:34Speaker 4: way that I did.
- 2:34Speaker 3: So what is medical equipment? What does that actually entail?
- 2:40Speaker 4: Wheelchairs, hospital beds, respiratory seapap, oxygen.
- 2:46Speaker 5: Diapers.
- 2:47Speaker 3: So you're buying these things and selling.
- 2:49Speaker 4: Them, yes, so I buy them for the manufacturers.
- 2:54Speaker 3: So you buy them from like China, No, I.
- 2:56Speaker 5: Buy them for US based manufacturers.
- 2:58Speaker 3: All right, a US based manufact can you sell them
- 3:01Speaker 3: to hospitals?
- 3:02Speaker 5: Hospitals, I also sell them to patients.
- 3:04Speaker 4: So let's say, for example, Mom is in the hospital
- 3:07Speaker 4: and she cannot embulate, she cannot walk, So they will
- 3:11Speaker 4: send us over a prescription for wheelchair and a walker,
- 3:15Speaker 4: and we'll qualify them through their insurance, through Medicare or
- 3:17Speaker 4: whatever insurance they have.
- 3:19Speaker 5: We'll build the insurance. Now they qualify.
- 3:21Speaker 4: They haven't received one in five years, so they qualify,
- 3:24Speaker 4: and then we deliver it. To the patient's home, we
- 3:27Speaker 4: set it up, we make sure that the wheelchair gets
- 3:29Speaker 4: through the doorways, we make sure that there aren't any
- 3:31Speaker 4: obstruction so that they won't fall, and we service the
- 3:34Speaker 4: patient for a year thereafter.
- 3:36Speaker 1: So how cash intensive is that?
- 3:38Speaker 2: Because I'm thinking, if I'm trying to start this, how
- 3:42Speaker 2: much money would I need to start?
- 3:44Speaker 1: Like a home healthcare medical that's not really home healthcare,
- 3:47Speaker 1: well medical equipment business.
- 3:49Speaker 4: So you have to have seven hundred Well when I started,
- 3:53Speaker 4: the number may have changed now, so I haven't.
- 3:55Speaker 5: Ventured back in that area recently.
- 3:59Speaker 4: When I just started, you have had seven hundred thousand
- 4:01Speaker 4: liquid in order to start a medical equipment.
- 4:04Speaker 3: So the medical equipment you're are you ever physically holding
- 4:09Speaker 3: or you're just shipping it from the warehouse to the client.
- 4:12Speaker 4: So you have a physical So I personally have a
- 4:14Speaker 4: physical holding. So all my deliveries are done by drivers
- 4:18Speaker 4: that's within my office that are hired and their employees
- 4:22Speaker 4: of Bailey's.
- 4:23Speaker 3: And you have a physical warehouse.
- 4:25Speaker 5: Yes, so every location.
- 4:27Speaker 4: So right now I have sixteen locations, and every location
- 4:30Speaker 4: has at least one or two warehouses that stacked with
- 4:33Speaker 4: items that patients would need. So if the prescription comes
- 4:36Speaker 4: in today and they need walker wheelchair. I will, they will,
- 4:40Speaker 4: qualified patient, send it out for tomorrow delivery.
- 4:42Speaker 3: But you're not making any of this stuff.
- 4:44Speaker 5: No, I'm not making.
- 4:45Speaker 3: So all right, that's interesting. I would have thought that
- 4:50Speaker 3: the people that make it are the people that sell it.
- 4:53Speaker 3: So if it's like X, Y and Z wheelchair, right,
- 4:58Speaker 3: like these are the manufacturers of it and they're selling
- 5:00Speaker 3: it like BMW sells cars that they make. Why are
- 5:05Speaker 3: they not doing that? And why would a hospital just
- 5:09Speaker 3: not buy directly from the people that's making it as
- 5:11Speaker 3: opposed to You're essentially like a mid middleman in the situation,
- 5:14Speaker 3: right right, Why would there be a need for a middleman?
- 5:16Speaker 4: So because they because then they're the part of qualifying
- 5:19Speaker 4: the patient and servicing them.
- 5:20Speaker 5: For because disabled people, you have to service them.
- 5:22Speaker 4: You have to make sure that they're set up properly,
- 5:24Speaker 4: make sure that they're not going to fall, make sure
- 5:25Speaker 4: they're not returning to the hospitals. So the manufacturers, they
- 5:29Speaker 4: would have to create a whole nother division in order
- 5:31Speaker 4: to service the patients. And so that's why the middleman
- 5:34Speaker 4: is necessary. There are most most manufacturers do not sell
- 5:38Speaker 4: directly to a hospital. Some of which do sell to
- 5:40Speaker 4: hospitals however, okay, so but not to end not to
- 5:45Speaker 4: end stage patients.
- 5:45Speaker 3: So you like customize the situation, yes, to make sure
- 5:48Speaker 3: that they get in the right fit. They just make
- 5:50Speaker 3: make a million of them, but you have to like
- 5:53Speaker 3: make sure that this one fits this person and right.
- 5:57Speaker 3: They might need to tweak a little bit here and there.
- 5:58Speaker 1: Yes, in situation exactly that.
- 6:00Speaker 4: So like a wheelchair, so you know, wheelchair people are
- 6:02Speaker 4: different sizes, so my staff have to qualify the patient
- 6:06Speaker 4: to make sure that, Okay, they might need a K one.
- 6:09Speaker 4: A K one is a standard wheelchair and they might
- 6:13Speaker 4: need it. They might be two hundred pounds five eight,
- 6:16Speaker 4: but they might be bottom heavy.
- 6:17Speaker 5: So instead of instead of.
- 6:18Speaker 4: Them having a twenty inch they might have eight or
- 6:21Speaker 4: eighteen inch, they may have a twenty inch. So that's
- 6:23Speaker 4: what it is necessary for someone like myself in the middle.
- 6:26Speaker 2: So, I mean because technology changes, so you have to
- 6:31Speaker 2: keep up with the technology, especially with wheelchairs like ten
- 6:33Speaker 2: years ago, they don't look the same, they're not operating
- 6:35Speaker 2: the same. How do y'all handle compliance and regulatory issues
- 6:39Speaker 2: when it comes to the equipment.
- 6:40Speaker 4: So there are lots of medical equipment and this is
- 6:43Speaker 4: actually more regulated than in pharmacy, right, you would think
- 6:47Speaker 4: that it would be the other way around. I read that,
- 6:48Speaker 4: but there are you have to be you have to
- 6:51Speaker 4: be licensed in each state. Then you have accreditation, then
- 6:54Speaker 4: you have Medicare, then you have all the other insurance plans,
- 6:58Speaker 4: and then you have oxygen is separated from the medical equipment.
- 7:01Speaker 4: You have oxygen license. So they're in each location. There
- 7:04Speaker 4: are at least six sometimes seven license that you have
- 7:08Speaker 4: to have just to sell the equipment, just to sell
- 7:09Speaker 4: medical equipment.
- 7:10Speaker 1: Which state did you Did you start in Florida?
- 7:13Speaker 5: Florida? Yeah?
- 7:14Speaker 2: So which states are more well less regulatory? Right, So
- 7:17Speaker 2: I'm sum of Florida and probably wouldn't been easy state
- 7:19Speaker 2: to do it, and not easy in the sense of
- 7:21Speaker 2: like not having to deal with as much as you
- 7:23Speaker 2: wouldn't other say, what states that come to mind are like,
- 7:26Speaker 2: all right, this is a good state to create this
- 7:28Speaker 2: business in.
- 7:29Speaker 4: So it's really governed by Medicare, which is national, right,
- 7:33Speaker 4: and you have to follow Medicare guidelines in all states.
- 7:36Speaker 4: And in order to build medicare, which is all equipment patients,
- 7:41Speaker 4: disabled patients, you have to follow the guidelines.
- 7:43Speaker 5: So it's really not easier in any state. Florida, I
- 7:46Speaker 5: think is a little bit harder.
- 7:49Speaker 4: They take longer for the license, they're more, they cost
- 7:52Speaker 4: more for the license. And it's because the reason why
- 7:55Speaker 4: accreditation came into play is because what I've been told
- 7:59Speaker 4: is Florida, in South Florida was one of the places
- 8:02Speaker 4: that they had the most medicare fraud. There were places
- 8:06Speaker 4: people that were just picking up busses of people paying
- 8:08Speaker 4: one hundred dollars and just bill the insurances from what
- 8:12Speaker 4: I from what I heard, now that may not be factual,
- 8:15Speaker 4: but that's what I was that was told.
- 8:16Speaker 3: So okay, so what's the profit margins.
- 8:22Speaker 5: The profit margins are good. They're good.
- 8:24Speaker 4: It depends on what the items are. Some of them sucks,
- 8:27Speaker 4: some of them are not that great. But most of
- 8:29Speaker 4: the times you'll get a patient who, let's say that
- 8:32Speaker 4: they're bed bound. They need a hospital bed, they need
- 8:34Speaker 4: a lift, they need a commode, they need a walker,
- 8:37Speaker 4: they need a wheelchair, and so a lot sometimes they
- 8:40Speaker 4: need oxygen. So with a patient like that, which is
- 8:43Speaker 4: a lot of our patients, you'll find that there's a
- 8:46Speaker 4: really good profit margin because even if you don't make
- 8:48Speaker 4: a lot on the hospital bed, you might make a
- 8:50Speaker 4: decent amount in the wheelchair and they'll kind of offsets
- 8:52Speaker 4: each other.
- 8:53Speaker 3: So you selling multiple things. Yes, and you said you
- 8:55Speaker 3: said Medicaid, medicare. So when you're selling this stuff, you're
- 9:01Speaker 3: like a doct like you're billing insurance for it. Yes,
- 9:04Speaker 3: people aren't paying out of pocket.
- 9:05Speaker 5: Well sometimes sometimes sometimes.
- 9:07Speaker 3: A lot of it's coming from insurance.
- 9:08Speaker 5: From insurance to yeah.
- 9:10Speaker 3: Yeah, how does that process work?
- 9:13Speaker 4: So when we qualify this, so you have to it
- 9:15Speaker 4: for wheelchair or any really any medical equipment. If you
- 9:18Speaker 4: have manicures or primary insurance, you cannot get one. You
- 9:22Speaker 4: could only have one per five years. So my staff
- 9:24Speaker 4: are running through the system. Okay, this s patient received
- 9:27Speaker 4: one last year from this this practice, and maybe they
- 9:31Speaker 4: got billed for the bill for two months. You can
- 9:33Speaker 4: take over the bill and for that patient and give
- 9:35Speaker 4: them another one because they returned it. Or if it's
- 9:37Speaker 4: a patient who actually do qualify, you will you will
- 9:40Speaker 4: just build for the thirteen months.
- 9:42Speaker 5: So it's a thirteen month rental for most equipment.
- 9:45Speaker 4: If the reason why it's profitable is because if a
- 9:48Speaker 4: patient passed away or goes in the hospital or no
- 9:50Speaker 4: longer need it, you pick it up because they're rentals.
- 9:53Speaker 4: Then you rent the same item to someone else.
- 9:55Speaker 2: Did the I guess the relationships that you build when
- 9:58Speaker 2: you were doing pharmaceutical play a key role in I
- 10:01Speaker 2: was creating for the medical health equipment because I'm thinking
- 10:04Speaker 2: to myself, how would I get the patients. I'd have
- 10:06Speaker 2: to have relationship with some of these hospitals. So what
- 10:09Speaker 2: role did that play?
- 10:10Speaker 4: Not much the relationship between my medical recruiting because of
- 10:14Speaker 4: my strong relationship with the practices, that had somewhat of
- 10:18Speaker 4: a role in it. But my first hire was a salesperson,
- 10:21Speaker 4: which should be every business first hire should be a salesperson.
- 10:24Speaker 4: I was out selling and I was coming back processing
- 10:27Speaker 4: and order delivering the items, and I walked into a
- 10:30Speaker 4: facility and I said to I said to the director,
- 10:33Speaker 4: I said, I want a pretty white boy, and she said,
- 10:38Speaker 4: I don't know anyone, but you know, hold on the
- 10:40Speaker 4: director's son. He just graduated. He's selling grass. Maybe you
- 10:47Speaker 4: can talk to him.
- 10:47Speaker 5: And my head, I said, director's son, the director of rehab.
- 10:51Speaker 5: That's over three three different rehab centers. That's a lot
- 10:54Speaker 5: of equipment that's coming my way.
- 10:56Speaker 4: I'm like, I'll interview him and in my head, I said,
- 10:59Speaker 4: even if he's semi decent, I'm hiring him because I'm
- 11:03Speaker 4: getting those sales from the work.
- 11:05Speaker 5: And I did.
- 11:05Speaker 4: I hired him and he my first employee in my
- 11:08Speaker 4: stimma right hand today.
- 11:10Speaker 2: Interesting, you got eye for it so or because the
- 11:14Speaker 2: equipment that takes to make these.
- 11:16Speaker 1: Have you ever run into issues with supply chain?
- 11:19Speaker 5: I did not. I did not. Most people did during COVIDR.
- 11:22Speaker 5: I did not have supply chain.
- 11:23Speaker 4: Issues because God just happened to give me this amazing
- 11:26Speaker 4: brain as soon as COVID hit.
- 11:28Speaker 5: I have a warehouse on my ranch and it's about
- 11:31Speaker 5: seven thousand square feet.
- 11:33Speaker 4: I ordered everything that I could, stocked it from the
- 11:37Speaker 4: roof and because of that, I didn't have supply chain
- 11:40Speaker 4: issues because I had all the equipment and supplies that
- 11:42Speaker 4: I needed.
- 11:45Speaker 3: So you said that you have fifteen locations. Fifteen locations, Yeah,
- 11:49Speaker 3: fifteen warehouses.
- 11:51Speaker 4: I have probably twenty five twenty six warehouses.
- 11:58Speaker 3: So what's the location? What's the location?
- 12:01Speaker 5: Weird?
- 12:02Speaker 3: What is it? What is the location? Like? What would
- 12:05Speaker 3: be a location, because I'm thinking a location is the warehouse?
- 12:07Speaker 4: Oh no, No, the locations have physical office that has
- 12:10Speaker 4: a display floor and it has the staff that stays
- 12:13Speaker 4: in that and the warehouses are where we just store
- 12:16Speaker 4: the supplies.
- 12:16Speaker 3: The location because people, it's not like a walk in thing, right.
- 12:20Speaker 4: It is, yeah, walk in oay, most people can't walk in,
- 12:23Speaker 4: so we deliver it.
- 12:24Speaker 5: But yes, you can walk in.
- 12:26Speaker 3: So at a location, you have people calling people and
- 12:30Speaker 3: you have what's that a location?
- 12:33Speaker 4: So at the location, so when you walk in, first
- 12:35Speaker 4: you was going to see pharmacy, because most of my
- 12:37Speaker 4: locations have pharmacy. You'll see a display of medical equipment
- 12:40Speaker 4: on the floor with a hospital bed where your.
- 12:42Speaker 5: Lifts, commodes, wheelchairs.
- 12:45Speaker 4: Then you'll see staff that are their processing the orders,
- 12:47Speaker 4: answering phones, and scrubs because scrubs is also another part
- 12:51Speaker 4: of my brand of my line. So pretty much that's
- 12:56Speaker 4: and then you have sometimes my warehouse is on site.
- 12:59Speaker 4: Sometimes there are site So that's what a location usually
- 13:02Speaker 4: looks like.
- 13:02Speaker 2: It's crazy that you're saying this because I'm just thinking
- 13:05Speaker 2: I drive past a location not yours, in my like
- 13:08Speaker 2: down the street from my house every day and I'm
- 13:11Speaker 2: not going in because it's not But I'm like, oh wait,
- 13:14Speaker 2: that does exist. That's interesting. I want to know how
- 13:18Speaker 2: competitive this is because you're doing it. But I'm sure
- 13:21Speaker 2: there's other people that are trying to compete and get
- 13:24Speaker 2: these clients and have more customers. How competitive is it
- 13:28Speaker 2: in this space.
- 13:29Speaker 4: It's competitive. It's very competitive. However, like I don't look
- 13:32Speaker 4: at my competition. Why because I'm better than everybody else
- 13:36Speaker 4: in the industry. The reason why I'm better, the reason
- 13:38Speaker 4: why we are better is because we service. See in
- 13:41Speaker 4: the medical industry, service is usually not very great. And
- 13:46Speaker 4: because I had personal experience of not being cared for,
- 13:49Speaker 4: I require that from my staff. They know that the
- 13:53Speaker 4: one reason that they can get fired for without a
- 13:56Speaker 4: question is if they're nasty or unkind to one of
- 13:59Speaker 4: my patients. And because of that, I make sure that
- 14:02Speaker 4: they have honey cones on their lips. When you answer
- 14:05Speaker 4: my phone, I don't care what moves you're in, you
- 14:08Speaker 4: must have honey cones on your lips.
- 14:09Speaker 5: And they know that. And because I also.
- 14:12Speaker 4: Treat them well, I treat them so well so that
- 14:15Speaker 4: matter of fact, on my birthday this past birthday, thank
- 14:18Speaker 4: you so much, I plug into the chat, the company chat,
- 14:22Speaker 4: and I said, okay, guys, it's my birthday today and
- 14:24Speaker 4: I have something for you.
- 14:26Speaker 5: So I gave for the last two years, I gave
- 14:28Speaker 5: each all of them, the.
- 14:29Speaker 4: Entire company, one dollar per hour raise, and so a
- 14:32Speaker 4: lot of the employers are messaging.
- 14:33Speaker 5: Like who gives someone something for their birthday?
- 14:35Speaker 4: I do because I believe that you should be kind
- 14:38Speaker 4: and loving to every person who is taking care of
- 14:41Speaker 4: you and every person who's around you, and I treat
- 14:44Speaker 4: them extremely well. So every customer that engages with them,
- 14:49Speaker 4: I get amazing reviews. And I got the opportunity to
- 14:53Speaker 4: experience it organically for myself. The delivery drivers in their
- 14:58Speaker 4: processes demand don't tell them they're coming to my house.
- 15:02Speaker 4: If I have medication being delivered my mom get her medicine,
- 15:04Speaker 4: they'll call and they have no idea they're talking to me.
- 15:08Speaker 5: And it felt so good.
- 15:09Speaker 4: He was so polite and so kind, and his voice,
- 15:12Speaker 4: his tone was so loving, and he had not a
- 15:16Speaker 4: single clue that he's talking to me. And I said,
- 15:18Speaker 4: this is exactly why I do what I do for
- 15:21Speaker 4: my staff.
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