XMED Oxygen & Medical Equipment
“Prochant is a partner you can depend on. We’ve more than doubled the revenue we did five years ago.”
Founder & President, XMED
- Reduced DSO by 50 days
- Reduced 90+ A/R by 63%
- Increased invoicing by $2.8 million
- Increased cash by 124%
John Skoro founded XMED Oxygen & Medical Equipment with one mission: to build a healthcare company that proudly serves its patients. XMED provides home medical equipment (HME), respiratory and sleep therapy, and post-mastectomy care through licensed and trained healthcare professionals.
Family owned and operated, XMED offers five main locations and five retail locations in the Austin, Houston, and North Central Texas areas. In October 2020, XMED became a part of the Pennsylvania-based HME company AdaptHealth.
As XMED expanded into the wider Texas market, the company needed a reliable and transparent billing partner. Skoro also recognized the important role of technology in his decision.
“It’s a huge issue of ownership and understanding liability, so we outsourced with a company, then brought it back inside,” says Skoro. “We went to another company, who was touted as tech-savvy, and found that their services were problematic. They weren’t working hard on our business.”
Skoro’s next vendor took its resources offshore. As a result, XMED’s numbers crumbled: Days sales outstanding (DSO) increased, and collections decreased. Skoro soon realized that his business was at a crucial transition point.
His colleagues suggested he speak with Prochant’s CEO, Mathew Mammen. Skoro spoke with Mammen, emphasizing the need for extensive data and transparency that were lacking with previous vendors.
“Mathew told me, ‘Prochant can do all of those things,’” says Skoro.
In 2015, Skoro made the move to Prochant. When XMED’s contract began, its metrics had suffered: DSO rose to 83.15 and 90+ A/R increased to 51%. Invoices stalled at $2.1 million and cash held at $715 thousand.
Prochant quickly went to work. Tracy Sharpe, Senior Account Manager at Prochant, was assigned to work with XMED. At first, Sharpe managed six revenue cycle processes for her new client as part of Prochant’s staff augmentation solution. XMED later signed up for full service billing, which handed its entire billing function over to Prochant’s experts.
For Sharpe, this partnership is significant. “It’s been a great five years – it really has. We’ve been an extension of their entire company. Prior to XMED, Prochant didn’t offer fax wrangling, resupply validation, or consignment order entry,” she says. “Prochant grew because of the services XMED needed. We expanded our menu of services because of it.”
With their strong partnership, XMED and Prochant successfully and substantially improved the company’s metrics.
Skoro agrees. “We’re partners together. If you’re successful, then I’m successful,” he says.
Working with Prochant, we have gone from 43% accounts receivable over 90 days to just 13%. In this audit rich environment, this result is phenomenal.
Steve Mamangakis, CEO
Physicians Choice Respiratory Services