Diabetes supplies propel Brentwood-based Simplex Healthcare

Simplex sells diabetes testing kits, glucose monitors and other supplies under the Diabetes Care Club brand name — an operation it bought two years ago — and it plans to sell other types of medical supplies soon to diversify.

CEO and co-founder Doug Hudson says Simplex's eventual goal is to become a publicly traded company. Already, Diabetes Care Club ranks among the top three firms nationally for the sale of diabetes supplies, with projected sales of $185 million this year, Hudson said.

"Two years ago, we were nothing but an idea, a concept. Over the next 18 to 24 months, we expect to double in size, to around 600 employees," he added. Hudson discussed how Simplex intends to reach its goals with Tennessean Business Editor Randy McClain.

What's your background; did you have any medical supply experience before starting this company?

I had just come from selling my piece of HearingPlanet.com, which was the largest hearing aid retailer online and a direct marketing business model. So, diabetes supplies wasn't too far a departure from that. My background was in marketing and call center operations. That led to this new venture.

Also, I knew diabetic supplies would be a much larger opportunity than Hearing Planet because of the size of the problem of diabetes. We went from 35 people employed by Diabetes Care Club when we bought it to more than 300 today and growing.

Who are the top three players today in diabetes supply?

If you start at the top, Liberty Medical is No. 1 with almost 1 million patients. Medco (a health-care giant with more than $51 billion in net sales last year) acquired them about the time that we bought Diabetes Care Club.

Another one we compete with is CCS Medical, which is backed by Warburg Pincus private equity, and they probably have 400,000 patients.

CCS has a very large sales force around the country that calls on physicians. We do more direct sales to patients.

In Nashville, there's also AmMed Direct, which focuses on mail-order medications for the diabetic patient. We focus on diabetic testing supplies, test strips, glucose meters.

We made a conscious decision early on not to get into the mail-order meds business because we feel like there's lots of other guys out there (that) do a great job for the patients. We want to focus on different areas where we think we can add the most value.

Diabetes is growing so quickly. Testing supplies are a primary product for the patient newly diagnosed with diabetes. That's how we want to get to know and keep the patient.

How do you tap into that huge market?

If you look at the U.S., there are 1.5 million new diabetics being diagnosed every year.

When they get the diagnosis from their doctor, they ask: "What do I do next?" And one of the first things they have to think about is routinely testing their blood sugar. And that's where we step in.

When it comes to testing equipment, what sort of meters do you supply?

We try to focus the patient on some of the newer meters, some of the newer technologies. Our goal isn't to just send them the cheapest meter. One of the big developments in our industry is no-coding technology.

With older meters whenever the diabetic got a new supply of test strips they'd have to punch a code into the meter to properly calibrate it for that batch of test strips.

Statistics show that one in six people code their meter wrong or don't code it at all. That's important because a lot of times those readings are what they set their insulin dose based on.

We decided early on to get no-code technology into the hands of our patients to make it a better experience.

When do you hope to take the company public, sell stock to investors?

Not at this time. We know it has potential, but right now we're focusing on growing our core business.

We're moving into a 92,000-square-foot office in Cool Springs off Carothers Parkway in November, and we will begin the process of recruiting for about 300 new staff members.

We're looking to double the size of our operations over the next 18 to 24 months. We can expand the new offices by an additional 50,000 square feet as the need arises.

We'll hire across the board. The jobs will pay anywhere from $30,000 to $75,000 a year. And here in Nashville, a health-care capital, we've got a well-trained, educated work force from which to recruit.

When you hire call or contact center personnel, how do you screen for medical knowledge or just plain patience?

Ellen Hitt, our vice president of human capital management, came on board and helped us get it right. There are a couple of things you look at. You hire attitude first; we want people on board who want to serve our patients.

There's a big difference between someone at a call center selling Ginsu knives, or just taking an order, versus someone who really personally connects with a patient and wants to help them.

We also hire for technical expertise. We do a skills assessment to judge whether they can handle the job. Secondly, we don't just sign off on a person after a single interview. They meet with their potential team captain, the department manager, a recruiter and human resources. Also, we're very focused on training and quality control after we hire someone.

What are some of Simplex's quality-control measures?

One of the things we look at is patient attrition; if we bring a patient on board and they order for the first time, do they order again? That's the ultimate metric on whether they're satisfied or not.

We also pay attention to feedback from patients on things they don't like. We used to print "Diabetes Care Club" on the boxes that we'd mail to people's homes. But many customers said they didn't like that. We thought from a branding and information standpoint it was a nice touch to have that on the box. But from the standpoint of someone newly diagnosed as a diabetic, many didn't want their neighbors to know or they were somehow embarrassed or bothered by it. We took that off the package.

How many patients do you have now?

At the end of August, we were at 187,000 patients, and we consider that ahead of plan. It's also evidence of just how bad the problem of diabetes is for our country.

In 2007, we had roughly $8 million in gross revenue. In 2008, it was around $56 million. This year, as of the close of Aug. 31, we were at $127 million. We're targeting around $185 million for this year as a whole. All that is through organic growth, not any other acquisitions.

Where do you advertise to reach the diabetic patient?

You'll see us on television, and you'll also see us on the Internet. On TV, we reach more of the newly diagnosed diabetic. On the Internet, you tend to see the patient's caregiver or a family member reaching out to find information — the son or grandson trying to help mom or grandma.

We like to use TV and the Web because we can easily track it to see what's effective and what's not. On TV, we run commercials with literally hundreds of 1-800 phone numbers so we know exactly which TV spots are working for us. We intend to spend $36 million on TV next year.

Are you considering making other acquisitions?

Let's take a step back and I'll tell you the broader vision for Simplex Healthcare. We'd like to serve 1 million patients across four or five product categories, not just diabetic supplies.

Right now, we have our Diabetes Care Club brand, and in August we launched a new division called CPAP Care Club that provides supplies to patients being treated for sleep apnea or sleep disorders.

We know there's a high incidence of people who have both diabetes and sleep apnea. We'd like to help them with both. If a patient is wearing a sleep apnea (oxygen machine) at night, we can provide them the masks, the filters, the tubing … all of which need to get replaced on a regular basis.

We have diversified as a company with CPAP Care Club. We didn't do this one through an acquisition. We started it from scratch. We'd like to get our bearings first and learn how the market works. We think that will make us a much smarter potential acquirer later in this arena.

Separately, for us to buy something else in the diabetic supply space … the odds are pretty low.

How did you pick sleep apnea services as your second division?

We asked our existing clients a whole list of questions, and what we found out was that about 62 percent of our patient base has sleep apnea. So, there's a very high coincidence of diabetes with sleep apnea. And, I wear a sleep apnea machine. Hey, I know a little bit about this, too.

Masks, filters and tubing are key supplies. It's a consumable that needs to be replenished every 90 days. And as we touch base with our diabetic patients about their supplies, we can serve both and do it in a cost-efficient way.

Source: www.tennessean.com

High Tech DIABETES TESTING Kits

Diabetes devices

Choosing Your DIABETES TESTING Meter

Good day! If you have anything you wish to add on this list, based on your own experience with DIA
BETES TESTING Meters, please feel free to share it with us by posting a comment. Thank you.

Features to Consider When Choosing Your Meter

Size of meter
If you carry your meter with you, consider a smaller meter and carrying case.

Size and location of buttons
Larger buttons may be easier for you if you have trouble using your hands or fingers.

Size and packaging of test strips
You must be able to open the foil wrapped or vial of strips. You also need to be able to pick up the strip to place it into the meter.

Blood sample size
If you test your blood sugar frequently, have trouble getting enough blood, or like to use sites other than fingers, consider a meter with strips that require 1 micro-liter of blood or less.

Meter memory
Memory features differ from meter to meter. Some meters store the result of one blood sugar test; others store up to 3000 tests.

Some meters can give you averages of blood sugar tests done in the past 7, 14, 30, or more days. Many meters have computer download capabilities and can display charts or graphs of your blood sugar results. Some meters even have the ability to keep track of food eaten, exercise, and medication, if you are willing to enter the information.

Batteries
Some meters use batteries that are easy to find (AA, AAA) at local stores. Other meters use batteries that need to be purchased at electronic stores such as Radio Shack. One simple solution is to carry a spare battery with you at all times. The battery life of most meters is about 2000 blood sugar tests.

Comparing meter features
Refer to the “Blood Glucose Monitors Reference Guide” from Diabetes Health.

SOURCE: www.diabeteshealth.com

Tips on DIABETES TESTING 2

Proper Disposal of Syringes and Lancets from www.americandiabetes.com

Laws regarding the proper disposal of your insulin syringes and lancets, vary from state to state. Primarily you would want to dispose of these items in a puncture-proof and leak-proof container, referred to as a Sharps Container. It's important to dispose of insulin syringes and lancets in order to protect individuals who may come in contact with your discarded needles, for example, your trash collector.

To find out what is required in your local area, try contacting one of the following agencies for specific information for your immediate area: Hazardous Waste Disposal, Public Health Department, or your community hospital.

Sharps containers can be purchased from your local or mail-order diabetic supplier.

Some communities may offer an exchange program in which you can swap out a filled container for a new one. Other communities may offer a mail-in service to exchange or dispose of the sharps containers.

If these options are not available and purchasing a Sharps Container is not in your budget, please follow health/safety guidelines. Use a rigid, leak & puncture-proof plastic container, such as a Clorox bottle & mark it as Bio-Hazard. When it is full, put the lid on and tape it securely shut. Place this bottle in the middle of the trash bag, and double-bag. Do not recycle hazardous materials!

SOURCE

Free DIABETIC SUPPLIES

Good day! This morning, I found this website called www.mydiabetessupply.com advertising Free DIABETIC  SUPPLIES. I'm just wondering if anyone has ever tried this before. Please share your experiences with me/us by posting a comment. Thank you.

I found this bit of information in their site. However, upon clicking the link which supposedly leads to the Free section, I was diverted to another website offering Free Smileys. Disappointing. Anyway, I've manage to post the name of the company who is advertising the Free DIABETES SUPPLIES. Please see below:


QualityHealth is the best rated and fastest growing community for diabetic people, their caregivers and/or loved ones, and health care professionals. If you are one of the millions of Americans suffering from diabetes, you may qualify to receive free diabetic supplies or at little cost.

Where to buy DIABETES TESTING kits

Good day! Today, I found a website called the American Diabetes Wholesale. It's an online store selling everything related to diabetes. You might want to check it out but before that, I took the liberty of attaching their company information below. For those who have already tried their service, please feel free to comment and share with me/us your experiences with ADW. Thank you.

"American Diabetes Wholesale focuses on helping you to effectively manage your diabetes. We serve everyone who must pay out of pocket for testing supplies by providing top quality brand name diabetic supplies and over-the-counter pharmacy items at prices that are up to 60% lower than retail prices. As part of our commitment to helping uninsured and underinsured patients with diabetes self-management, American Diabetes Wholesale strives to remove some of the economical challenges that patients face without health coverage. We provide low cost diabetic supplies directly to you with a friendly and courteous customer support staff.

We carry an extensive stock of all major brands; blood glucose monitors, glucose test strips, lancets, and other top quality diabetic supplies, while offering significant savings to the customer. Our superior customer service staff is trained to answer all your questions about our products, service and shipping. Our convenient ordering system enables customers to purchase low cost diabetic supplies without any qualifying questionnaires or tedious paperwork. You simply buy supplies at discounted prices.

Through long-term working relationships with Physicians, Certified Diabetes Educators, Registered Nurses and other providers, American Diabetes Wholesale acts as a resource for these healthcare professionals to help their patients maintain healthy and active lifestyles. These professionals know that affordable diabetic supplies are essential to effective diabetes self management.

Diabetes affects many lives; almost every person who isn’t diabetic knows someone who is. Therefore, we joined the fight against diabetes - in the community, national and global levels, to help find a cure. As proud supporters of the Juvenile Diabetes Research Foundation, the American Diabetes Association, the American Association of Diabetes Educators and Eye Care for Kids, we volunteer time, and sponsor countless efforts through health fairs, fundraisers and other community events.

Since 2002, we have been delivering our promise to provide quality products at affordable prices with fast shipping. We work hard at earning and keeping our customers loyalty and confidence, with a personal touch that makes a difference."

For a link to their website, please click SOURCE.

Various ways of DIABETES TESTING

This article on DIABETES TESTING is from www.webmd.com

Everyone with DIABETES should TEST their blood sugar, or glucose, levels regularly. Knowing your blood sugar levels allows you to alter your diabetes management strategy if your levels aren't near your target blood sugar.

Also, regular TESTING of your blood sugar can help reduce your risk of having long-term complications from DIABETES. Based on studies of people with type 1 diabetes (Diabetes Control and Complications Trial [DCCT]) and type 2 diabetes (United Kingdom Prevention of Diabetes [UKPDS]), maintaining near normal blood sugar and HbA1c levels significantly reduces the risks of complications from diabetes.

Ways to Test Your Blood Sugar With Diabetes

    Traditional Home Blood Sugar Monitoring. The traditional method of testing your blood sugar involves pricking your finger with a lancet (a small, sharp needle), putting a drop of blood on a test strip and then placing the strip into a meter that displays your blood sugar level. Meters vary in features, readability (with larger displays or spoken instructions for the visually impaired), portability, speed, size, and cost. Current devices provide results in less than 15 seconds and can store this information for future use. These meters can also calculate an average blood sugar level over a period of time. Some meters also feature software kits that retrieve information from the meter and display graphs and charts of your past test results. Blood sugar meters and strips are available at your local pharmacy.

    Meters That Test Alternative Sites. Newer meters allow you to test sites other than your fingertip; these alternative testing sites include upper arm, forearm, base of the thumb, and thigh. However, testing at alternative sites may give you results that are different from the blood sugar levels obtained from the fingertip. Blood sugar levels in the fingertips show changes more quickly than those in alternative testing sites. This is especially true when your blood sugar is rapidly changing, like after a meal or after exercise. It is also important to know that if you are checking your sugar at an alternative site while you are experiencing symptoms of hypoglycemia, you should not rely on these test results.

    Lasers to draw blood. In 1998, a laser to draw blood was approved by the U.S. Food and Drug Administration (FDA). The laser device produces a precise beam of light that penetrates the skin on the finger instead of pricking it, reducing pain and discomfort.

    MiniMed Continuous Glucose Monitoring System. This device involves a small plastic catheter (very small tube) that is inserted just under the skin. It collects small amounts of fluid and measures the sugar content over 72 hours.

    GlucoWatch. In 2001, the FDA approved the GlucoWatch, a watch-like device that helps people with diabetes measure their blood sugar via tiny electric currents. It draws small amounts of fluid from the skin and measures blood sugar levels three times per hour for up to 12 hours. The GlucoWatch is considered a first step toward noninvasive, continuous sugar monitoring, but it does have some shortfalls.

According to the FDA, these newer devices should not replace the traditional daily finger pricks. SOURCE