Steven Hernandez, president and owner of Star Medical Equipment Rental, Inc., used to be embarrassed to say that he ran his company like a “mom and pop operation.”
But, today, he sees that as a positive. “I found, over the years, that big is not necessarily better,” he says. “Smaller-sized companies like ours can be more flexible and responsive in terms of both pricing and service.”
Star Medical is a 19-year-old business that specializes in two product areas: nutritional formularies for tube-fed patients, and wound care services and supplies. It also sells consumables and disposables such as dietary supplements for infants and diabetics, syringes, and adult briefs, and rents standard DME items like wheelchairs and hospital beds.
Headquartered in Medley, FL, the company operates out of a 15,000 square-foot warehouse and employs a staff of eight. Hernandez and one other professional handle the marketing, promoting the company to hospitals and nursing homes from Tallahassee to Miami.
Star is especially competitive in the cutting-edge field of negative pressure wound therapy, says Hernandez. In simplest terms, this therapy produces a vacuum state over the wound, which draws blood to the skin to promote healing.
Star provides the supplies and treatment devices for this therapy, including foam dressing. “Only two companies in the country currently manufacture the dressing,” states Hernandez, “and Star is the exclusive South Florida distributor for one of them, Innovative Therapies, Inc. (ITI).”
Foam represents an advance over traditional gauze dressing. It provides thermal insulation to the wound, while creating a moist healing environment; further, its non-adherent, can be easily removed, and may be used with topical antibiotics on infected sites.
Hernandez also carries ITIs wound treatment systems, which he says offer benefits over the competitions, such as greater comfort and better outcomes for the patient. They also cost lessa third less, says Hernandez. “ITI is a smaller enterprise than its key competitor, and thats definitely reflected in its pricing.”
Hernandez sells Star not only on the quality and pricing of its products, but on the overall quality of the company. Star is accredited through the Healthcare Quality Association on Accreditation (HQAA), a national service designed expressly for DME providers. HQAA helps companies meet rigorous standards and practices in all facets of their business, from operations to accounting. It also suggests ways to improve.
Another advantage Star affords is attentive service, says Hernandez. “I pride myself on delivering 24/7. Even if a customer calls on a Saturday or Sunday, I immediately get them what they need. While this is not an emergency-based business, people do have high expectations for turnaround.”
Hernandezs plans for growth center on finding new customers for his core products, rather than on expanding his offering. Hes targeting large hospital systems for his wound care items, and has been in negotiations with one in South Florida since last September.
“Its a long process of presentations to review panels,” he says. “Once they like your price, theyll trial you with the value analysis team, wholl then evaluate your clinical efficacy.”
In nursing homes, the sales cycle is shorter, Hernandez notes, because youre generally marketing one-on-one. The upside is, he adds, if you can sell one facility, others owned by the same entity are likely to contract with you as well.
For the near term, the business outlook is positive, says Hernandez. “2008 was mostly level; so far, 2009 looks promising.”
Steven Hernandez, president and owner of Star Medical Equipment Rental, Inc., used to be embarrassed to say that he ran his company like a “mom and pop operation.” 
