The constantly changing healthcare market forces durable medical equipment (DME) providers to quickly adapt in order to remain compliant and successful as new healthcare reforms and policies are put into place. Some of these policies may make it difficult for some medical suppliers to keep up with the market, but they do not have to go out of business.
Mergers and acquisitions are a common solution for those seeking exit strategies, and also for larger DMEs looking to gain more market share. It allows for smaller businesses to remain intact and even grow, providing a solution for all parties involved.
Trends Leading to Increased Mergers and Acquisitions
As healthcare reform continues to occur, we can expect more mergers and acquisitions to take place within the durable medical equipment provider field. Healthcare costs are rising, but reimbursements are being cut, creating a difficult environment for smaller medical suppliers to stay afloat.
DMEs must have the resources available to withstand the time consuming and expensive reimbursement process, especially when insurance companies do not even guarantee payment. Medicaid plans and Managed Care Organizations (MCOs), noted for lengthy delays in reimbursement and slow response, aren’t helping to simplify things either.
Under their complicated plans and policies, the coverage plans provided to individuals do not ensure reimbursement, and to make matters worse, may be superseded by Centers for Medicare and Medicaid Services, Federal, or State requirements.