Launch a DME business to provide patients in need while creating a lasting, gratifying business for yourself. But when it comes to working legally and productively, you do need to comply with laws and regulations regarding licensing at the federal and state levels.
Understanding those steps to become licensed and DME accredited is critical if you’re interested in billing Medicare and insurance, and treating your patients with confidence.
DME Accreditation
DME Accreditation is Vital to All DME Startups Ups You will need DME accreditation when starting a DME business. This is official recognition from a Professional/Providers organization accredited by Medicare that your facility meets national quality standards in safety, services, and patient care.
Without DME accreditation, you cannot submit claims for reimbursement to Medicare and Medicaid; this is, as every practice clinic knows, where the money is made. Prospective business owners can partner with experienced service providers like The DME Consultant to help make implementation feel manageable and stay on track, averting potentially expensive errors.
What Is Durable Medical Equipment?
Durable Medical Equipment: Medically necessary equipment, such as orthopedic braces as prescribed by a doctor, and only when used in the home. Examples include:
- Wheelchairs
- CPAP machines
- Oxygen equipment
- Walkers
- Hospital beds
- Nebulizers
- Diabetic testing supplies
As this equipment has a direct impact on patient well-being, DME suppliers must meet stringent regulations to substantiate their quality and dependability.
Federal Licensing Requirements for DME Businesses
To own a DME company that caters to Medicare patients, there are several federal requirements you need to fulfill. Here’s what’s needed:
Get a National Provider Identifier (NPI).
An NPI number is an identification number that applies to all individuals and organizations that provide healthcare services in the United States. It needs to be used to submit insurance claims, including Medicare.
Enroll in Medicare (Form CMS-855S)
You will need to fill out Form CMS-855S to become a supplier of DMEPOS (Durable Medical Equipment, Prosthetics, Orthotics, and Supplies). This application is gathering very detailed business information and background checks.
Secure DMEPOS Accreditation
You need DMEPOS accreditation before you can get approved for Medicare. This is done via an accrediting organization approved by CMS, to include:
On-site inspections
- Evaluation of patient service standards
- Review of documentation practices
- Quality control checks
There are also other required renewals and checks to say K.A. / luncheon etiquette maintain your accreditation.
Obtain a Surety Bond
For each practice location, CMS has mandated a surety bond of $50,000. It acts as a barrier to fraudulent billing and allows trust to continue in the provision of health care.”
State Licensing Requirements
Each state has DME licensure laws. There’s little in the way of universal standards; states have laughably low requirements; others are far more stringent. Common state requirements include:
State DME License or Registration
In some states, a separate DME supplier license is required from the Department of Health or equivalent. There are prerequisites for background, zoning, and handling of equipment.
State Pharmacy Board Registration
If your business involves any kind of medication or controlled device, you may be required to register with the Board of Pharmacy in your state, including if you’re not a pharmacy.
Sales Tax Permit
You will need a sales tax permit if your state taxes the sale of medical devices. This is what enables you to properly collect and report sales tax.
Local Business Licensing
Businesses often need a business license to legally conduct their business. Some might require proof of zoning approval and facility inspections, too.
Ongoing Compliance and Renewal
Licensure is an ongoing process. Here we introduce you to 4 ongoing compliance responsibilities that you’ll need to meet, once you have your business licensed and accredited:
- Renewing licenses and permits regularly
- Keeping up with regulatory changes
- Maintaining documentation and patient records
- Staying current with Medicare supplier standards
- Getting ready for surprise audits or inspections
Why Work With The DME Consultant?
New business licensing and certification have historically been a cumbersome process, especially for new business owners. That’s why you should only hire a company that you can trust, such as The DME Consultant.
Their services include:
- Step-by-step licensing guidance
- DME accreditation preparation
- Medicare enrollment support
- Business setup consultation
- Compliance training and renewal reminders
You will start your DME business faster, stay compliant, and avoid the costly mistakes that could have you dragging your feet.
Final Thoughts
DME Accreditation Launching a durable medical equipment business is about more than just having a good idea — federal licensing, state registration, and, most importantly, Durable Medical Equipment (DME) accreditation are all necessary for starting a DME. These measures not only serve to safeguard patients, but also to assure product quality and that you can lawfully bill Medicare and other payers.
Make it easy on yourself.If you don’t have to go at this alone! Kick start the process by enlisting experts like those at The DME Consultant who specialize in assisting DME providers establish ongoing success.
