Disaster Preparedness: Know The Dollars and Cents of Disaster

Published in Government Relations on December 08, 2022

Emily Harken

This article was originally featured in HME News.

Q. What expenses do most providers incur during a disaster? 

A. Last month, the Emergency Preparedness Committee, along with VGM Government Relations and AAHomecare, surveyed DMEPOS suppliers regarding all the overlooked expenses associated with a disaster.  

The intention of the survey is to illustrate the number of dollars and additional expenses incurred before, during and after a disaster to the U.S. Department of Health and Human Services, CMS and state/federal emergency groups. Due to unforeseen disasters, suppliers incur increased financial expenses that are not recouped by any insurance and often not reimbursed by federal or state disaster aid.  

The findings from the survey showed that the majority of suppliers report a more than 25% cost increase due to a disaster. 

  • More than 80% report having to make additional deliveries prior to and immediately after a disaster to keep up with patient needs.  
  • More than 60% report an increase in their delivery radius by up to 50 miles to service patients in preparation for and after a disaster and its aftermath. 
  • And almost all report that deliveries take an additional 50% of their time in these times of need.  
  • The survey also showed that most suppliers experienced increased expenses not covered by insurance, including: 
  • Lost, damaged, destroyed equipment (87%) 
  • Time spent researching updates from federal/local governmental agencies (75%) 
  • Time and resources preparing for the disaster (71%) 
  • Communication efforts (64%) 
  • Technology and equipment for remote staff access (64%) 
  • Equipping vehicles/tires for DMEPOS deliveries/pickups (54%) 

Findings from the survey are being compiled and sent to CMS. Our hope is to show CMS there is a significant need for additional reimbursement, as well as regulation leniency, during a disaster. 

We greatly appreciate the suppliers who took the time to complete the survey. 

Do not forget, there are many disaster resources available to you on the committee’s website: https://www.vgm.com/services/government-relations/resource-center/emergency-preparedness-for-home-medical-equipment-suppliers-committee/   

Emily Harken is director of operations for VGM Government Relations. Reach her at emily.harken@vgm.com.


TAGS

  1. dmepos
  2. hme
  3. vgm
  4. vgm government

From Our Experts

Evaluating the Value of a Payer Contract thumbnail Evaluating the Value of a Payer Contract In our last article, Key Payers Denied Your Application Citing Their Network Is Closed – Now What?, we discussed strategies for addressing payer contracting denials due to a closed network. As indicated, this process can be an extremely time-consuming exercise with no guarantees and mixed results. Below are a few things to consider as you evaluate whether a contract is worth the extra effort. Webinar: Webinar: "Navigating The New CMS Landscape: RADs, HMVs, and Supplier Survival" on June 25 at 1 p.m. CT. The Centers for Medicare & Medicaid Services (CMS) has released its final National Coverage Determination (NCD) for RADs and HMVs used in treating chronic respiratory failure due to COPD. While the rule potentially expands access to bilevel ST therapy (RADs), it also introduces complex compliance requirements, tighter usage criteria, and increased documentation burdens—without additional reimbursement. The Return of Competitive Bidding thumbnail The Return of Competitive Bidding The Centers for Medicare & Medicaid Services (CMS) appear to be laying the groundwork for another round of the Competitive Bidding Program (CBP). While full implementation will take a couple of years, an official announcement is expected this summer—potentially as early as July. Out With The Old RAC, In With The New thumbnail Out With The Old RAC, In With The New On April 28, 2025, CMS awarded Cotiviti GOV Services LLC, the new RAC Recovery Audit Contractor (RAC) Region 3, 4, and 5 contracts. RAC Region 3 includes the following Medicare Administrative Contractor (MAC) jurisdictions: JJ, JM, and JN. RAC Region 4 includes jurisdictions: JE, JF, and JL. And RAC Region 5 includes jurisdictions: JA, JB, JC, JD, as well as the HH/H MACs: J6, J15, JK, and JM. Iowa Leads the Charge! All Four Representatives Back H.R. 2005—Will Your State Step Up? thumbnail Iowa Leads the Charge! All Four Representatives Back H.R. 2005—Will Your State Step Up? At VGM Group, Inc. we have the pleasure of serving our members and partners throughout the country.  One of the many ways we do this is through legislative advocacy, working with our partners to create a more equitable and effective healthcare system. All our VGM units are dedicated to advancing our partners' businesses, streamlining operations, and working every day to enhance reimbursement for the quality in-home healthcare our industry provides all people. Mike Hamilton Of ADMEA Honored With The Mal Mixon Advocate Award thumbnail Mike Hamilton Of ADMEA Honored With The Mal Mixon Advocate Award Last week, during the 2025 AAHomecare Washington Legislative Conference, Mike Hamilton, Executive Director of ADMEA, was honored with the prestigious Mal Mixon Advocate Award. VGM Senior Leaders Engage in Advocacy at AAHomecare Legislative Conference thumbnail VGM Senior Leaders Engage in Advocacy at AAHomecare Legislative Conference This week, VGM leaders attended the AAHomecare Legislative Conference in Washington, D.C., a premier event dedicated to advancing healthcare policy and advocacy. AAHomecare provided attendees with valuable insights, equipping them with key discussion points and strategies for effective meetings with legislators. Champion of Change: Paula Vineyard of Elana Health & Loop Medical Leads Healthcare Advocacy in West Virginia thumbnail Champion of Change: Paula Vineyard of Elana Health & Loop Medical Leads Healthcare Advocacy in West Virginia On Thursday, May 8, Paula Vineyard, owner of Elana Health & Loop Medical, took a pivotal step in healthcare advocacy by hosting a meeting with Tyler Ohrn, Field Representative for Congresswoman Carol Miller of West Virginia's First District. The hour-long discussion centered on the pressing need for congressional support of H.R. 2005.