According to an insightful Medtrade article, HME/ DME growth over the next few years should be significant - and other major sources agree.
In the next three to five years, Alan Morris, senior vice president of Strategy and Business Development, VGM & Associates, puts the number at 6.5% year-over-year growth.
He states: “A lot of industries would be more than happy with that. We’ve got some massive tailwinds behind us—an aging population, more reliance on DME to keep patients in the home, and a prevalence of chronic conditions which require our products and services.”
Health Value Group predicts significant growth as well, with market revenues projected to exceed $110 billion by 2028.
Will Growth Look the Same Across All Product Categories?
Well, no. Growth typically varies in the DME/ HME industry depending on product category, and the future outlook is no different. For example, according to the aforementioned Medtrade article, “sleep medicine is pacing at about 7% growth, but oxygen is growing at a much slower rate—mainly due to fewer smokers and more former smokers.”
Demand for continuous glucose monitors (CGMs), on the other hand, is growing rapidly, because diabetes is ever prevalent. Morris says, “There is also a technology shift away from other modalities to CGMs.”
How Will the Shift From Medicare to Medicare Advantage (MA) Impact Growth?
The shift from Medicare to Medicare Advantage (MA) has been opted into by over half of Medicare eligible people. According to Morris, these MA plans “offer low premiums and cost sharing on copayments. They can also bundle things that Medicare can’t, such as bundling traditional Medicare covered items with dental, vision, and hearing coverage.”
However, the benefit of this shift for DME/ HME providers is debated.
When competitive bidding was originally coming on the scene - some fifteen years ago - the shift away from traditional Medicare to MA would have likely been celebrated, Morris would argue. However, today, big payers (with large numbers of MA consumers) are narrowing their networks.
Morris states: “We saw it a few years ago with Humana. We’re seeing it in some states with Blue Cross. We’re seeing it in almost half the states with United Healthcare.”
Not all providers feel this way, though. Some see MA plans as an opportunity to aggregate volume and grow their business to the MA population - catering to a broader customer base.
While much remains to be seen, solid growth in the DME/ HME space is a certainty.
What Can Providers Stay Competitive During Industry Changes?
HME News suggests four key moves:
- Strengthen relationships with health systems, which have growing influence with payers;
- Leverage artificial intelligence (AI) and DME automation, with a focus on filling operational gaps and improving efficiency
- Diversify their product mix into adjacent home-based services, such as home dialysis, that build on their existing footprint in the home
- Ultimately, DME companies must view themselves not just as equipment suppliers but as key players in the broader home-based care ecosystem.
Have more questions about how to stand out in a growing and competitive DME/ HME space?
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