The market for durable medical equipment (DME) is growing because of the ageing population and an increased desire by patients to stay in their homes. Difficulties with Medicare billing and lower payments are driving many DME suppliers to opt out, with patients paying out of pocket instead.
Opportunities for Today’s DME Entrepreneur
With the multitude of changes and challenges in today’s durable medical equipment (DME) marketplace, successful entrepreneurs are seeking new opportunities where they can employ their skill and experience.
Ask yourself:
⇒ What opportunities and markets are right for my company, my customers, and myself
⇒ How do I successfully enter new, parallel markets without jeopardising my current DME operation?
Why you should care about Parallel Markets?
Parallel markets are environments where DME owners can utilise their expertise despite some differences of language or philosophy. Parallel markets allow a DME provider to diversify risk and opportunity, with the possibility of expanding offerings within existing populations served.
Why? One of the silver linings in the aftermath of the initial competitive bidding phases is the emergence of a new diversification approach to the DME and related markets.
For example, there are similar reimbursement sources to Medicare (e.g. Medicaid) that have been more stable with continuing growth as part of the Affordable Care Act expansion. While a successful DME owner may have a very strong market niche today, they know that considering other options within their skill set increases their prospects for the future.
Durable Medical Equipment Market Analysis
The “Durable Medical Equipment (DME) Market Report” further describes detailed information about tactics and strategies used by leading key companies in the Durable Medical Equipment (DME) industry. It also gives an extensive study about different market segments and regions.
The durable medical equipment market was valued at USD 140.9 billion in 2015 and is expected to witness a CAGR of 6.2% over the forecast period. The prevalence of chronic conditions, such as heart disorders, cancer, gynaecological disorders, and neurological disorder is on a rise. Demand of long term care and hospitalisation for treatment of these disorders is anticipated to facilitate the demand for durable medical equipment.
The U.S. DME market Value is large, growing and can be profitable for independent pharmacies. While competitive bidding under Medicare and other regulations have made DME sales more challenging, the U.S. DME market is expected to grow from $46.5 billion in 2015 to $60.2 billion in 2020.
To do DME, you have to do it well. “The learning curve is pretty steep to do it correctly.”
Keys to growing the DME business
DME providers have faced a volatile market that has been turned upside down with competitive bidding, lower reimbursement rates, and audits. While the Cures Act will provide temporary relief to most providers, it’s time to think about what you can do differently as you embark on 2018, to drive growth and profitability in the ever changing DME market.
Here are some ways that can help you maximize profit, create efficiency, and find new revenue streams.
- Examine your 2017 data.
- Train providers.
- Be Audit Ready for 2018.
- Leave no stone unturned.
- Strengthen the relationship with your Referral Sources.