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  • Writer's pictureMichael Breslin

How to Choose Which DME Products to Offer

Selecting the right DME products to start your DME business may be one of, if not, the most important decisions you will make when starting a DME business. Yes, your business name matters. Yes, your office location matters. Yes, the states you choose to do business in matter. A lot of things matter when starting a DME business.

But products, may very well be the most important and let me tell you why.

If you cannot generate leads you are going to have a significant amount of trouble growing a DME business. The success or failure of your DME business all starts with referrals and how you generate them. Your referral source goes a long way in determining what products you will receive referrals for.

There are a few important factors to consider when deciding which durable medical equipment supplies you are considering to offer to your patients. When we consult our clients on product selection, we advise them to consider the following:

  1. Who are your referral sources and what product lines do they write prescriptions for?

  2. Will they refer enough volume to you to generate enough revenue for you?

  3. Are those product lines one and done products or consumables?

  4. What staffing will you need if consumables?

  5. Are any of the products in a competitive bid program or pending to be included in a competitive bid program

  6. Know how strong, or weak, your product margins are. You can money in both scenarios but the smaller the margin, the larger the volume needs to be to pay the bills.

  7. Do these product lines, that you are considering, create the opportunity for manufacturer referrals?

  8. What is the Medicare audit rates for the product lines you are considering?

  9. Do you know the documentation needs that are required to ship and bill Medicare beneficiaries?

The DME business is a great, and can be a highly lucrative business, but product selection and referrals sources are the fuel for the engine. The great news is that our DME experts at Boost Advisory Group can assist in all aspects of getting your DME business started, as well as, growing your business in a profitable and compliant manner.

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