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.