Durable medical equipment (DME) has become a growing area of interest for M&A and other investment activity as the industry experiences increasing levels of demand, product innovation and reimbursement stability for most products in a fragmented competitive landscape. The sector has increasingly attracted investors as historical concerns regarding billing (i.e., fraud, waste and abuse) and reimbursement rate pressures (e.g., CMS’s DME Competitive Bidding Program) have subsided. Moving forward, the industry is well-positioned in the growing home healthcare market, particularly for disabled and chronically ill patients. In this piece, Marwood explores the outlook for the DME market, including growth drivers, payor contracting dynamics, and reimbursement considerations, while addressing how the space has evolved to meet the risk appetite of investors.

 

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