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Why Every Independent Pharmacy Should Offer DME (Durable Medical Equipment)

Updated: 6 days ago

Adding DME can unlock new cash and Part B revenue, improve patient outcomes, and turn your store into a one-stop care destination. Demographics and coverage trends make this a timely, high-ROI move.


Why DME, Why Now

  • Aging boom: Adults 65+ reached 61.2 million in 2024 and are growing fast—demand for home-based care and mobility aids is rising. Census.gov

  • Daily need states: 28.7% of U.S. adults report a disability; 12.2% have mobility limitations—core DME categories you can serve. CDC+1

  • Real dollars in play: Retail DME spend was $67.1B in 2022 (2% of U.S. health spend), with continued growth. CMS

  • Cash opportunity: Out-of-pocket health spending hit $505.7B in 2023—prime for cash-pay DME (braces, bathroom safety, rentals). CMS

  • Coverage tailwinds: Medicare now broadly covers CGMs under Part B (DME benefit) with expanded eligibility—recurring supply revenue. CMSMedicare


Business Impact for Your Pharmacy

  1. New Revenue Streams

    • Cash sales: Compression, ortho supports, bathroom safety, wound care.

    • Rentals: Wheelchairs, hospital beds, knee scooters—high margin, repeatable.

    • Part B billing: Nebulizers, walkers, CGMs, diabetic supplies.

  2. Higher Basket & Retention

    • Bundle DME with chronic care (e.g., COPD + nebulizer), weight loss (home scales), or diabetes (CGM + strips) to lift average order value and refill stickiness.

  3. Clinical Differentiation

    • Fitting, training, and outcomes coaching add value online retailers can’t match—especially for seniors and caregivers.


Fast Math: A Simple ROI Snapshot

  • Assume: 15 cash DME sales/week @ $85 avg margin + 10 rental weeks @ $25 margin + 20 Part B supply claims @ $18 margin

  • Monthly gross margin: ≈ $5,000–$7,000

  • Upside: Add CGM programs, orthopedic bracing clinics, and discharge bundles to scale further.(Illustrative only; tune with your pricing, payer mix, and volume.)


What to Stock First (Low Lift, High Turn)

  • Core mobility & safety: Canes, walkers, shower chairs, grab bars.

  • Ortho & pain: Wrist/ankle/knee braces, TENS.

  • Cardio/respiratory: Nebulizers, BP monitors, pulse oximeters.

  • Diabetes: CGMs (Dexcom/Libre) + monthly supplies; meters/strips.

  • Women’s & men’s health add-ons: Pelvic support belts, ED devices (as appropriate).


Operations Playbook (30/60/90 Days)

Days 0–30: Launch Lite

  • Designate 6–10 SKUs and a few rental items; train staff on fitting & documentation.

  • Add DME to your website and POS; create counter cards and pickup bag stuffers.

  • Start discharge partnerships with local clinics/urgent care.

Days 31–60: Bill & Scale

  • Enroll as Medicare DMEPOS supplier (PECOS 855S), accreditation, and $50,000 surety bond per NPI; implement Supplier Standards. CMS

  • Add CGM workflows: eligibility screen + 30/90-day supply cadence. CMS

  • Stand up basic delivery/installation for rentals.

Days 61–90: Promote & Optimize

  • Run provider outreach (fax/e-fax, detailers) for post-discharge bundles.

  • Launch patient campaigns (email/SMS) for diabetes, mobility, and fall-prevention.

  • Track KPIs: DME margin %, rental utilization, CGM persistency, referral sources.


Compliance Essentials (At-a-Glance)

  • Accreditation: Obtain from a CMS-approved AO; meet DMEPOS Quality Standards. CMS

  • Medicare Enrollment: Submit CMS-855S via PECOS and pay the fee. CMS

  • Surety Bond: $50,000 per NPI. CMS

  • State rules: Verify any state DME supplier licenses and Medicaid enrollment where applicable.

How RxConnexion Helps You Win

  • Telemedicine (XPedicareRx-24): Create demand (e.g., diabetes, respiratory) → convert to DME sales and supplies.

  • Central Fill: Keep front-end lean while expanding clinical offerings.

  • Marketing Engine: Provider fax/e-fax, compliant SMS/email, website DME pages, and in-store assets to drive referrals and repeat purchases.


Ready to add DME the smart way? Schedule a quick strategy call and we’ll map a 90-day rollout tailored to your patient mix and payers.



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