CMS Small Supplier Network Option for Smaller DMEPOS Providers
VGM is helping eligible small DMEPOS suppliers collaborate through CMS-compliant Small Supplier Networks—making it possible to participate in the CMS Competitive Bidding Program (CBP) for Remote Item Delivery (RID) without merging businesses or navigating the process alone.
Opportunities Through the CMS Small Supplier Network
CMS now allows small suppliers with $3.5 million or less in annual gross revenue to form a network under 42 CFR § 414.418. By pooling locations, licensure, and accreditation, network members can collectively meet nationwide RID competitive bidding requirements.
This opportunity is designed for VGM members who:
- Qualify as a CMS small supplier
- Want to bid on RID product categories
- May not independently meet nationwide licensure or geographic requirements
- Want to remain independent businesses while participating in competitive bidding
To qualify, all network members included in a bid must together meet CMS enrollment, accreditation, and state licensure requirements.
VGM Is Your Connector and Resource
VGM is helping facilitate separate Small Supplier Networks for the following RID product categories:
- Class II Continuous Glucose Monitors (CGMs) and Insulin Pumps
- Urological Supplies
- Ostomy Supplies
- Hydrophilic Urinary Catheters
- Off-The-Shelf (OTS) Back Braces
- OTS Knee Braces
- OTS Upper Extremity Braces
This connection offers:
- A secure forum for interested members to find potential network partners
- Education on CMS rules and network requirements
- Guidance on structuring compliant Small Supplier Networks
- Opportunities to learn more from industry experts
Submission of this form does not obligate participation. It simply allows VGM to assess interest and help align suppliers with potential network opportunities.
Explore CMS Small Supplier Network participation today!
CMS FAQ on Network Bid Opportunities
“If individual small suppliers cannot independently meet all of the state licensure requirements for the remote item delivery nationwide (RID) competitive bidding area (CBA), such as the requirement for a physical location in a specific state or area, can a group of individual small suppliers (suppliers with annual gross revenues of $3.5 million or less, including both Medicare and non-Medicare revenue) form a network that meets the requirements under 42 CFR § 414.418, and be awarded a contract under the nationwide RID CBA as long as the network of small suppliers can collectively meet all requirements for the nationwide RID CBA.
“Yes, pursuant to 42 CFR § 414.418, small suppliers unable to independently furnish all of the items in the product category to Medicare beneficiaries throughout the entire geographic area of a CBA, have the option of joining a network. To be awarded a contract, all network member locations included on a bid must together meet all applicable enrollment requirements, including accreditation and licensing.”
Requirements:
(a) A network may be comprised of at least 2 but not more than 20 small suppliers.
(b) The following rules apply to networks that seek contracts under this subpart:
(1) Each network must form a single legal entity that acts as the bidder and submits the bid. Any agreement entered into for purposes of forming a network must be submitted to CMS. The network must identify itself as a network and identify all of its members.
(2) Each member of the network must satisfy the requirements in § 414.414(b) through (d).
(3) A small supplier may join one or more networks but cannot submit an individual bid to furnish the same product category in the same CBA as any network in which it is a member. A small supplier may not be a member of more than one network if those networks submit bids to furnish the same product category in the same CBA.
(4) The network cannot be anticompetitive, and this section does not supersede any Federal law or regulation that regulates anticompetitive behavior.
(5) A bid submitted by a network must include a statement from each network member certifying that the network member joined the network because it is unable independently to furnish all of the items in the product category for which the network is submitting a bid to beneficiaries throughout the entire geographic area of the CBA.
(6) At the time that a network submits a bid, the network's total market share for each product category that is the subject of the network's bid cannot exceed 20 percent of the Medicare demand for that product category in the CBA.
(c) If the network is awarded a contract, each supplier must submit its own claims and will receive payment directly from Medicare for the items that it furnishes under the competitive bidding program.