Successfully Moving Into the Retail Market

“Leave it to Beaver” has been replaced by “Modern Family.” The old way of running a DME business no longer works. With competitive bidding, stringent documentation requirements, lower reimbursement, and post-payment audits, Medicare fee-for-service should only be a component ofthesupplier’s total income stream.There are 78 million Baby Boomers retiring attherate of 10,000 per day. Boomers are accustomed to paying for things out-of-pocket. And most Boomers wantthe“Cadillac” product - notthe“Cavalier” product - sothey can have an active lifestyle wellintotheir 80s.Thesuccessful DME supplier will be focused on selling upgrades, utilizing ABNs, and selling “Cadillac” items for cash.Theseretailsales may take place in a store setting, through a kiosk, or overtheInternet.

When selling products for cash, there are a number of requirements thattheDME supplier must meet. This program will discuss these requirements, including the following

1. state licensure;
2. selling Medicare-covered items at a discount offtheMedicare allowable;
   
3. obtaining a physician prescription; and
4. collection and payment of sales and/or use tax;
5. qualification as a “foreign” corporation;
6. required notification to a Medicare beneficiary even thoughthesupplier does not have a PTAN;
7. complying with federal and state telemarketing rules.

Lastly, this program will discuss the benefits of setting up a separate legal entity through which the retail business will be operated.