DME can get really expensive really quick. Not to mention the nightmare of complexity surrounding keeping costs down. Because this is a challenge that tons of hospices face, we asked the experts on DME Cost Management over at Qualis Management to help us help you better manage your DME costs. Here’s an action plan for the top 7 complexities associated with DME costs.
It has come to SONO’s attention that some DME companies have begun agreeing to onerous conditions in their vendor contracts with DME management companies that could cripple your hospice in the future.
DME: Durable Medical Equipment, Disturbing Medical Expense, or Drinking Made Easy?
It’s what you make of it!
During the late 1990’s, with relatively few legal or educational requirements to open a DME business coupled with excellent profit margins, the United States supported over 70,000 DME companies. Things are changing quickly though for DME companies, especially with the most recent merger of StateServ and Hospicelink.
Durable Medical Equipment (DME) is often targeted for expense reduction with the goal of maximizing the value on each dollar spent while ensuring high-quality patient care. To achieve this goal, most hospices approach DME management with the short-term priority of lowering expenses, but are not equipped to take the second step to ensure the intermediate and long-term goals of achieving value going-forward. This is where the right DME management company can save you more money than you could have ever imagined. This collaboration between client, DME management company, and DME provider(s) works very well and here is how it can be accomplished.
When hospice leaders ask others in the industry, “How can we best save money on DME?”, they often receive the usual answer: “Renegotiate with your DME vendor.” But this isn't always the full story.
Successful hospices are looking to save money wherever possible while ensuring high quality of patient care. Due to reduced revenues coupled with rising operating costs, the industry is facing margin compression. One area of significant expenses for hospices is Durable Medical Equipment (DME); as such, it is often targeted for expense reduction with the goal maximizing the value on each dollar spent. To achieve this goal, successful hospices approach DME management with the short-term priority of lowering expenses, coupled with the intermediate and long-term goal of utilizing DME in a manner that provides increased value going-forward – all while maintaining high-quality patient care. This tandem approach works. Here is how to accomplish it.