Fueling HME Growth with a Data-Driven Strategy

Published in Member Communities on August 28, 2025

As the healthcare industry continues to evolve and shift toward home-based care and value-based care and the payer landscape continues to shift in favor of Medicare Advantage Plans, strategic growth in home medical equipment (HME) is no longer just about intuition—it's about data-informed decision-making. Suppliers must evolve their strategies to stay competitive.

For individuals aiming to expand their HME businesses, there are actionable tools available to develop and implement based off strategies rooted in data that empower growth, efficiency, and smarter decision-making.

Why Strategy Matters More Than Ever

With National Health Expenditures data showing HME volume growth of 71% from 2016 to 2032, and CMS estimating the market to reach $73B by 2032, the opportunity is massive. But growth won’t come from simply expanding locations— it will come from maximizing volume per location and building strategic relationships across the care continuum.

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Three Pillars of a Data-Driven Strategy

1. Data: The Foundation

Leverage data from VGM Market Data, state associations, market research firms, and FOIA requests.
Use the CMS data portal to understand Strategic opportunities with hospitals, physicians, SNFs, and health systems.
Tap into price transparency tools to inform product and payer strategies.

2. Development: Building the Strategy

Align product focus with growth segments like sleep therapy, diabetes care, and complex respiratory devices.
Understand local market dynamics using HCPCS-level data with VGM Market Data.
Factor in payer trends—Medicare Advantage and private insurance are growing, while Medicare FFS is declining. Payer contract consolidation and narrowing networks are also continuing, so align with the right partners to ensure access to patients.

VGM Industry Insights provides access exclusive market intelligence, trend analysis of various DMEPOS product segment, and other market insights designed to support DMEPOS strategic decision making. Check out these reports here.

3. Deployment: Executing with Precision

Focus sales efforts on high-volume referrers using referral data.
Build relationships with hospitals, SNFs, and physicians based on their risk models and incentives.
Optimize contracting strategies with competitive intelligence.

VGM & Associates offers a comprehensive suite of professional business services designed to help HME providers make confident decisions that drive meaningful results. From audit readiness, revenue optimization, and sales development, to operational support, IT innovation, logistics, and strategic planning, our experts deliver tailored solutions that drive measurable impact. Click here to learn more about VGM Professional Services.

Strategic Tools for Growth: Outsourced Solutions and Mergers & Acquisitions

Providers can also benefit from outsourced solutions like billing support, analytics platforms, and group purchasing organizations to streamline operations and reduce costs. These tools not only improve margins but also free up resources to focus on strategic growth.

As HMEs continue to seek ways to gain scale and efficiency, merger & acquisition (M&A) activity offers a path to scale, diversify product offerings, and expand geographic reach for many DMEPOS suppliers. A data-driven approach ensures that M&A decisions are aligned with market trends and payer dynamics. For guidance in navigating M&As, VGM’s vendor partner Capstone Partners offers investment banking and financial advisory services to support business owners through every stage of the company lifecycle, including M&As. Click here to learn more about Capstone Partners.

Creating a Culture of Strategic Growth

Strategy isn’t static—it’s a cycle:

Define clear objectives
Collect and analyze relevant data
Identify key metrics
Implement and monitor
Review and optimize

This iterative approach ensures your strategy evolves with the market and remains aligned with your business goals.

Final Thoughts

The HME industry is at a pivotal moment. By embracing healthcare strategies that are informed by data, aligned with payer trends, and supported by strategic partnerships, VGM members can position themselves not just to grow, but to lead. Want to know more about how VGM can help your HME business? Reach out to us today!

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