Heartland Sneak Peek: HME Industry SWOT Analysis

Published in Government Relations on April 22, 2022

By Craig Douglas, Vice President, Payer and Member Relations, VGM Government Relations

The types and quantity of changes that have occurred within our industry over the past two years are unprecedented, and the majority of them have been driven by the COVID-19 pandemic. Some changes are legislative, some are regulatory, while others are payer policy/reimbursement related. Regardless of the type of change, they all impact your overall business strategy in some manner. These changes have made a profound impact on the DMEPOS industry as a whole, and most likely on your individual business as well. 

In the last 2 years, we’ve seen a Medicare competitive bid program that, for all intents and purposes, didn’t really happen for most of you, increased demand for certain products, policy changes from both CMS and private payers, reimbursement changes, supply chain issues, and product recalls that have impacted many DMEPOS providers.

From a cost perspective, several manufacturers have implemented either temporary surcharges or permanent price increases. These price increases are not limited to just a few manufacturers or a few products, but rather impact a large percentage of commonly requested DME product categories. In addition to the product cost changes, there have also been sharp increases in labor, shipping, fuel, and other overhead costs. There have also been new costs that weren’t there before, or that were previously minimal but are now much more substantial, such as PPE, temperature scanners, plastic barriers in the office, etc.

On the flip side of that, there have also been changes on the reimbursement side of things for many providers. Government program money (think Paycheck Protection Program, HHS Provider Relief Fund, etc.), as well as price increases from Medicare/Medicaid/private payers which helped offset some of the price increases providers were experiencing. Was there enough assistance? Was there too much? Many of those pricing changes are temporary, and there is still quite a bit of uncertainty surrounding the long-term reimbursement direction from the industry’s largest payer, CMS.

With all that has happened and that is yet to come, you may feel like you have more questions than answers in terms of what this looks like when ALL the dust settles.

Heartland LogoAt this year’s Heartland Conference, please join Craig Douglas, Ronda Buhrmester, Mark Higley, and John Gallagher from VGM as they discuss these topics, answer questions, and propose best practices and potential solutions to help your business thrive. Learn more and register at vgmheartland.com.   


TAGS

  1. billing & reimbursement
  2. cms
  3. heartland
  4. vgm government

From Our Experts

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. Manufacturer Survey On Tariffs thumbnail Manufacturer Survey On Tariffs The American Association for Homecare and VGM Group are seeking valuable insights from durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) manufacturers and vendor partners regarding tariffs imposed on certain countries. Key Payers Denied Your Application Citing Their Network Is Closed – Now What? thumbnail Key Payers Denied Your Application Citing Their Network Is Closed – Now What? This experience has increasingly become one of the most common questions we receive from our provider members as more and more payers move to narrow their provider networks. The reasons payers seek to narrow their networks are simple. Payers are highly motivated to achieve their goals while doing less work and are not required to allow providers into their networks unless there is a patient access issue. For those of you fortunate enough to be a part of a narrow network, this may not be much of