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  • Writer's pictureMichael Breslin

How to Start a DME Business

At a high level, to start a DME business, you must complete the following four steps:

  1. Create a business entity with a physical business location…cannot be a home-based business

  2. Obtain a NPI

  3. Obtain DMEPOS Accreditation from a Medicare approved agent

  4. Obtain Medicare Licensing Approval

Doesn’t sound that difficult right? Well as I said, the execution of these steps can be extremely difficult. In fact, the devil is in the detail.

Let’s start with creating a business entity. Here is some additional detail:

  1. You must decide what type of legal structure… many choose an LLC, but you should discuss this with your attorney or accountant…and decide how you want the entity taxed. Sole-Proprietor, S-Corp, C-Corp?

  2. File for a EIN with the IRS. This is your businesses social security number for the IRS.

  3. Once you have your EIN and Articles of Incorporation, you need to open a Business Checking Account.

  4. Secure a compliant physical business address. There are a handful of requirements that must be met such as minimum size, but one of the main one’s is that it must be a true, physical address. It can NOT be a Regus type office.

  5. Register with Secretary of State (home state), Foreign Qualification (Additional Shipping States)

  6. Hire a Registered Agent for any state you will ship but not have a physical address/staff

  7. Obtain State, County, Sales Tax Licenses (May include a Fire Marshall Inspection)

  8. Determine if state DME licenses are required

  9. Obtain Surety Bond

  10. Obtain Liability Insurance

Now we are ready for the Accreditation Process.

  1. Complete the application

  2. File the paperwork and pay the deposit

  3. Obtain Accreditation Agency Standards

  4. Create policies and procedures manual: includes approx..140 standards

  5. Have your onsite inspection at your physical business location

  6. Respond to standard deficiencies, if any, within 30 days

  7. Become Accredited

Now for the Medicare Approval Process:

  1. Pass an FBI background check

  2. Complete 855s Form… approximately 27-page application

    1. They return the 855s if there are any mistakes

  3. Have a Medicare onsite inspection

  4. Correct any deficiencies

  5. Obtain Your PTAN

There you have it. It is as easy as 1-2-26.

But do not worry. Boost Advisory Group is your expert that will handle the vast majority of this for you to get you accredited and license as quickly as possible. We have over 50 years of combined DME experience, not just as consultants, but as executives, business owners, clinicians, operating managers, compliance leaders, and product specialists.

Boost is unlike any other DME consultant that is out there. Unlike other consultants, Boost does not just file your paperwork, get you approved, and then leave you at the alter to figure it all out by yourself.

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