text: How to Open a DME Business | Small Business - Chron.com
  A durable medical equipment business is a company that sells health care related items intended for use in the home for an extended period. Products such as wheelchairs, hospital beds, glucose monitors and nebulizers are considered durable medical equipment, and are often covered by insurance plans and Medicare provided that the equipment is intended for long-term use. Opening a DME business allows you to sell and distribute these durable items to those who need them, receiving payment either directly or through an insurance plan that covers DME purchases.
  Choose how you wish to operate your durable medical equipment business. You can choose to open a physical store, an e-commerce website that sells medical equipment online or a combination of the two.
  Select a location to serve as the physical presence of your DME business. If opening your business as an online only store then you can use your home as the base of operation. If you plan on having a physical store, locate a commercial property that meets the needs of your business and rent or lease it.
  Create a limited liability company or other business structure according to the procedures outline by your state. This arrangement protects your personal assets in case of business problems and may have tax advantages depending on the type of business structure you choose. Apply for a local business license; you may need to file a "doing business as" or d/b/a form to perform financial transactions under your company alias.
  Consult the state Board of Pharmacy or medical board to determine whether you need a specialized license to sell DME goods in your state and what the licensing requirements are. The licensing requirements may include restrictions on the type or amount of certain products you can keep in stock, information on patient recordkeeping including confidentiality requirements and the requirements enabling patients to contact your business in emergency situations.
  Contact the Department of Social Services or similar organization in your state to inquire about Medicare and Medicaid certification if you wish to accept these insurance types. States typically only allow Medicare and Medicaid recipients to make DME purchases using their insurance if the company selling the equipment is enrolled in the state's supplier program or otherwise registered with the state. Complete any registration paperwork required and pay the registration fee to become eligible to bill Medicare or Medicaid in your state.
  Contact medical equipment manufacturers to see if special pricing or other discounts for DME businesses are offered. Buying equipment directly from the manufacturer can reduce your overhead cost, especially if the manufacturers offer reduced rates based on your specialization in durable equipment. Begin purchasing equipment to stock your store.
  Open your store or launch your website, advertising it locally and online. Contact local doctors, informing them of your business and ask whether you can place an advertisement or business cards in their offices.
  Maintain records of all transactions, recording serial numbers and descriptions of any equipment sold to create a clear record of what has been sold to which patient. Submit tax payments to the IRS as required, filing your business tax returns according to the IRS schedule for your business type.
  Centers for Medicare and Medicaid Services: Durable Medical Equipment (DME) Center
  Centers for Medicare and Medicaid Services: Medicare Coverage of Durable Medical Equipment and Other Devices
  Connecticut Department of Social Services: How to Get Durable Medical Equipment through the Medicaid Program
  North Carolina Board of Pharmacy: Frequently Asked Questions Relating to DME Facilities
  If opening a physical store, look for a commercial location near a hospital or medical offices if possible. This will increase the visibility of your DME business for customers likely to require that equipment.
  Some medical equipment appeals to a limited market and is expensive to stock. Research the market for DME products to determine which items are most in demand to avoid spending a large amount of money stocking items with only a limited appeal. Keep a limited inventory of these items or provide special order product only.