Recent requirements for DMEPOS suppliers to obtain a surety bond and
accreditation have increased the cost of doing business. In implementing these
requirements, CMS noted that these increased costs "will require some
DMEPOS suppliers to reconsider their participation in the Medicare program."
CMS estimated that approximately 40% of the suppliers with annual Medicare
revenues of less than $10,000 and 30% of the suppliers with annual Medicare
revenues between $10,000 and $24,999 will exit the Medicare program. CMS
cautioned new suppliers to develop a business plan and marketing analysis "to
determine whether it makes business sense to open and establish a new
DMEPOS supplier business." Ober|Kaler's Donna J. Senft explains.
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