The durable medical equipment (DME) market is growing. It is expected to surpass $76 billion by 2026. DME meets medical needs for seniors and people with disabilities.
How does a DME business work? A DME business provides and sells equipment to patients and facilities. It can be a physical or online store.
To start a DME business, follow these steps:
- Secure a store or website.
- Get tax IDs and merchant accounts.
- Contract with vendors and distributors.
- Market your brand.
DME requires prescriptions before Medicare covers costs. Rentals may be required before purchases. Profit margins and valuations depend on demographics, staff, vendors and other factors.
Regulations and competitive bidding make DME sales challenging. However, independent pharmacies can thrive in this market segment. Opportunities exist by choosing a specialty or underserved segment.
Medicare insures populations who need DME, making Medicare billing important for DME suppliers.