8-Step Guide to Open a DME (Durable Medical Equipment) Business

Posted by medicalstaffing on February 24th, 2020

Durable medical equipment (DME) business is the one that deals with medical supplies that are offered to medical patients and consumers for extended use at home. It covers a huge range of products, such as wheelchairs, pressure-reducing support surfaces, children’s mobility and positioning equipment, hospital beds, canes, crutches, ventilators, nebulizers, oxygen monitors, traction equipment, pressure mattresses, bili lights, lifts, accessories for diabetic patients, and more. Many types of equipment are also covered under insurance plans, given that they are intended for long-term use. 

Opening a DME business means you can sell and distribute these items to patients who need them and earn money by receiving payment either directly or through an insurance plan that covers DME supplies. However, before starting this business, you should be aware of durable medical equipment business policies to ensure that your business remains protected against illegal claims and violations.

This blog discusses how to open a DME business. So, let’s take a look at them. 

1. Online, Physical, or Combo??

First of all, decide whether you want to open an online business, have a physical store, or would like to go for both options. While you can manage operations at home in case of online business, you need to find a suitable commercial place for rent, lease, or purchase (near hospitals or similar facilities for maximum benefit) in case you want to have a physical store for selling DME supplies. 

2. Choose Business Structure

According to the policies and procedures set by your state or local authorities, create a limited liability company or other business structure to protect your assets and enjoy tax benefits. Then, apply for a local business license. For that, you may need to fill and submit a “doing business as” or d/b/a form. It would allow you to perform and manage financial transactions under your business name.

3. Go through DME Business Policies

Check out whether you need a specialized license to sell DME goods in your state or not. Also, find out what your licensing requirements are. It is best to have a detailed manual of durable medical equipment business policies so that you can check out information about restrictions on the type or amount of certain products you can keep in stock, patient recordkeeping, and the requirements that enable patients to contact your business in case of emergencies. 

4. Obtain Employer Identification Number and Open a Business Account

Commence your business by decorating your store location, securing a domain name and creating a website (if you also want to expand your access to online shoppers). Obtain the employer identification number from the IRS and open a business account with a credit card processing company if you want to accept payments through credit card as well. 

5. Contact the Department of Social Services for Insurance Inquiries

In case you want to accept insurance, contact the Department of Social Services to gather knowledge about certifications such as Medicaid or Medicare. Finish all your registration paperwork to enable yourself to bill Medicare or Medicaid in your state.

6. Check Out If There Are Special Pricing and Discounts Available for DME

Contact the DME manufacturers to know whether there is any special pricing or discounts for the DME supplies you are procuring. Buying supplies directly from the manufacturer will reduce overhead costs. Stock your store with the DME supplies you decided to deal in. 

7. Launch the Business and Advertise

If possible, start advertising upfront so that more and more people would become aware of your business and start looking for required supplies right from the day you open the business. For the advertisement, you can inform local doctors, old homes, assisted living homes, and other healthcare facilities about your business. Open your store and launch your website. 

8. Ensure to Maintain All Records, Transactions, and Descriptions of DME Sold

To stay clean in the eyes of legal authorities, maintain records of all the transactions, serial numbers, and descriptions of equipment sold. This will help you create a clear record of which equipment is sold to which patient. Submit tax as required by the IRS and file business tax returns. 

Follow all these steps and durable medical equipment business policies and take your business ahead.