As we hit the midpoint of 2016, we wanted to take a minute to consider the DME industry. We called several of our DME/HME customers to find out what they think is going on. Here are four main points they shared with us.
Reimbursement is Tight
Need we say more? Getting reimbursed gets harder every single day. It seems like no matter how hard you try, getting all the right documentation together, meeting the deadlines, and the extensive demands of payors is exhausting. Many DME owners tell us that reimbursement rates are at “starvation levels”
Cash is the Opportunity, but …
The greatest opportunity for growth in DME is in cash sales. Who doesn’t want to move to cash and avoid all the headaches of getting reimbursement? But the problem is that you’re competing with Amazon, which sells many medical equipment items at cost.
DME reimbursement is tied to government rules. One of our customers in Idaho just told us that he recently completed a review by Idaho Medicaid on 62 claims that were four years old. After much gathering and exchanging of paper and many meetings, Idaho determined that a total of $17 had been overpaid. The process cost our customer at least $500, not to mention all of his time and sleepless nights.
Margins are Shrinking
With rents rising, salaries rising, and lower reimbursement rates, DME businesses face shrinking margins. Add to that the ability for the consumer to price shop and often fulfill their needs using Amazon, and many DME businesses are deciding that being in the business just isn’t worth it.
We Would Like to Help
At Bonafide, we believe we can be part of the solution. We can help you reduce overhead and streamline your business operations, while simultaneously improving your reimbursement rates.
If that sounds like something you would like, please call us!