Beacon Health Memories, Moments

Richard and Diane Omdahl founded Beacon Health in March 1987.  DIRECTION recounts some of the memorable events of this business.

Naming the company
Rich and Diane struggled with a name.  They knew people would have trouble pronouncing or spelling “Omdahl and Associates” or something similar.  So, they focused on a slogan, a tag line — something every successful business needs.  Think about American Express and “Don’t leave home without it.”  In no time, they came up with “Cut your way through the Medicare fog.”  The tag line didn’t make the cut but it led to the concept of a beacon.

The first trade show
In September 1987, Beacon Health participated in its first trade show exhibit at the National Association for Home Care (NAHC) annual meeting in Washington, DC, and displayed one product — The Beacon Guide to Medicare Documentation.  The founders wanted to determine whether there was any interest in or need for training publications.  The response was overwhelming.  (FYI:  That first publication is now The Beacon Guide to Medicare Service Delivery, soon to be in its eighth edition.)

Make or break decision
After three years of working out of a basement office, Rich and Diane faced a decision.  Beacon Health was more than a hobby but not quite a business.  It was time either to shut it down (and send Diane off to find a job in the homecare world) or move to an office.  In January 1990, Beacon Health moved to a two-room basement office.  Since then, the company has moved three more times.

A good opportunity turns bad, then turns good again
In 1990, homecare providers faced a new requirement — providing three hours of home health aide in-service training every quarter.  A large homecare corporation did not know how its agencies would meet this requirement so it turned to Beacon Health.  Over one weekend, Rich and Diane developed a business and production plan for a series of 12 videos in one year, then obtained the financing and production support.  After production started, the corporation informed Beacon Health that instead of purchasing programs for its agencies, it would merely recommend them.  Too far along to change the plans, Beacon Health continued with development.  Eventually, homecare providers found the programs.  That series of aide in-service lessons changed the nature of Beacon Health, becoming a multi-media company.

The worst times
As with the entire homecare industry, the years of the Interim Payment System (IPS) were by far the worst.  That’s because everyone was caught off guard; there was no way to prepare.  And no business strategies in the world could offset the horrific cuts that Congress unintentionally put into place.  (For those who did not live through those dark years, Congress intended the IPS to cut $16 billion from homecare Medicare expenditures over four years.  Instead, the cuts totaled $78 billion in less than three years.)  Beacon Health downsized 16 employees and lost a lot of money.  But like many, it survived. 

Good from the bad
Two years into IPS, Rich and Diane had a startling revelation — one that would change the nature of the business.  Homecare providers desperately needed education but they could not afford it.  Beacon Health had a warehouse full of educational information but they could not sell it.  So, the Beacon Institute™ came into being.  For a nominal fee, providers could rent video programs and get discounts on purchases, answers to questions, and two newsletters.  The Beacon Institute, now with four levels of membership, has become central to Beacon Health’s educational efforts. 

The future
The one thing that’s probably certain about the future of Beacon Health is that someday Diane, and maybe Rich, will need homecare.  That’s why Beacon Health is working hard — to ensure there will be high quality providers to care for them.