FOR IMMEDIATE RELEASE

HOME OXYGEN DELIVERY PROFITABILITY
MODEL FOR HME SUPPLIERS

Riverside, California, November 3, 2003 ---- Strategic Dynamics Inc. has released a software based model to help Home Medical Equipment (HME) suppliers maximize their profitability of home oxygen delivery while still providing clinically appropriate equipment for the patient.

The model is based upon the HME supplier entering the patient’s prescription information, activities of daily living requirements, their equipment acquisition costs, operational costs and anticipated monthly reimbursement.

The model calculates the patient’s oxygen requirements and then provides a financial comparison of purchasing the equipment to leasing it using the two most common lease programs available today.

Designed by and for HME suppliers, the easy-to-use model allows the HME supplier to understand the financial implications of providing one method of oxygen delivery over another. The model compares delivering oxygen concentrators plus various size oxygen cylinders for ambulation, versus liquid oxygen, a combination system of an oxygen concentrator plus liquid oxygen versus use of an in-home refillable cylinder system.

Of particular interest to the HME supplier is that the model automatically calculates the number of E, M9 or M6 oxygen cylinders the patient will need, based upon a delivery schedule of once or twice per month. It also allows the HME supplier to vary the number of hours of patient ambulation, the savings ratio of different oxygen conserving devices used, the number of deliveries per month and the net present value to see the effects on profitability.

The model was presented at the fall 2003 MedTrade meeting in Atlanta, Georgia. MedTrade is the largest international trade show dedicated to the home healthcare industry.

To order a copy of the software or to learn more about the product please contact Strategic Dynamics Inc. at 480-488-3639.