Helpful Advice on How to Open a DME Company

Are you contemplating opening a durable medical equipment (DME) company? The future of DME looks promising and could be a favorable decision if you’re prepared to do the work. However, the DME industry constantly evolves with strict regulations and ongoing policy adjustments. Therefore, you’ll want to ensure you surround yourself with skilled staff members who can help you navigate these changes. 

As you begin the process of opening a DME company, learn more about the decisions involved in opening a business and how Medbill can help you.

7 Decisions to Make When Opening a DME Company

When you choose to sell and distribute DME or durable medical equipment prosthetics, orthotics, and supplies (DMEPOS) items, you can sell directly to the customer or submit a claim to an insurance provider or Medicare for reimbursement. We’ll provide more information on how to become an accredited Medicare supplier below. 

For now, here are several decisions you’ll need to consider when opening a DME company. 

Select a Business Location

In order to be a Medicare provider, you’ll need to have a physical location with a store. Once you find a business location, you can decide if you want to have an online store for your customers.

Make Your Business Legal 

You’ll need to apply for an employer identification number with the IRS, a business license, and create a legal business structure that follows your state’s laws. This protects your personal assets in the event your business encounters problems. Make sure to find an experienced lawyer to answer your legal questions and help with any legal documents needed. 

Apply for a DME License 

Some states require you have a license to sell DME items. You can learn more about navigating your state’s licensing requirements here.

Determine if You Want a Medicare and Medicaid Certification

You can contact the Department of Social Services to learn more about certification and your state’s DME supplier program. Additionally, you can learn more about how to become a DME supplier for Medicare here.

Find a Medical Equipment Manufacturer 

Buying DME from the manufacturer can save you money with special pricing, bulk discounts, and more.

Create a Company Website 

In this day and age, the majority of businesses have an online presence. So even if you only want to sell equipment in a physical store, you’ll still want an online presence so customers can learn about your business.

Determine How You Want to Advertise 

You can advertise locally in doctor offices, pharmacies, or community health events to promote your business, or you can advertise online through search engine ads or social media.

Final Thoughts on How to Open a DME Company

Now that you know more about what’s involved with opening a DME company consider these final thoughts. 

It’s important to note that most patients needing DME equipment use Medicare health insurance.


If you’re considering selling DMEPOS items, there are additional requirements you’ll need to meet that aren’t necessary for DME items.


Once you open your business, find and use DME documentation checklists to help keep billing organized.


Find credible resources to stay current on all DME billing changes. Some resources include

AAHomecare, Centers for Medicare & Medicaid Services DME Center, and Medbill

Learn How Medbill Can Assist with Your DME Business 

You invest significant time and money to open your DME business, so set yourself up for success with Medbill. Our team can help you to create and maintain an effective billing process for submitting accurate claims (even in an industry where policy changes regularly occur). 

Contact us to how we can help with your billing needs.