Over 2.5 million Americans rely on durable medical equipment (DME) to give them dignity and autonomy while suffering from a range of chronic, often debilitating conditions.1 But navigating DME ordering, coverage, and delivery remains complex for patients and providers alike.
The following guide helps shed light on those complexities to ensure every patient can access essential equipment with ease. It reveals how streamlined ordering processes can dramatically improve patient outcomes and reduce administrative burden, answering critical questions like:
In medical terms, durable medical equipment (DME) refers to devices designed for long-term use by individuals with disabilities, injuries, or chronic health conditions. This includes multiple distinct sub-categories, including:
However, most healthcare professionals rely on Medicare’s strict criteria to determine what constitutes DME.
Medicare’s coverage terms define DME as any equipment that is:
Any equipment that meets these criteria is covered by Medicare, but this leaves a lot of equipment that does not qualify for reimbursement.
Many items that patients require to manage their conditions outside of the hospital environment fail to meet Medicare’s DME criteria, including:
As a result, patients will most likely have to purchase these items for themselves. But there are also edge cases, such as motorized scooters, which may qualify as DME—depending on the specifics of the case. For example, Medicare will cover motorized scooters if the patient is unable to undertake daily living activities even with the support of a cane or walker.
The availability of high-quality DME empowers patients with a wide range of conditions and leads to:
DME gives patients more autonomy than they would otherwise have—restoring independence, enabling return to their routines, and allowing them to remain at home rather than enter an institution. Research has also shown that DME can positively influence patients’ self-esteem; equipment like glucose monitors often gives patients with chronic conditions a greater sense of control over their illness.2
Increased autonomy and the ability to return home are linked with better overall care outcomes. From improved sleep to higher patient satisfaction, the ability to recover in a familiar environment surrounded by loved ones has a profound effect on patient health. One meta-analysis even suggests that home-based care—facilitated by DME—lowers patients’ risk of readmission or long-term care admission.3
Strategic, proactive deployment of DME can deliver substantial economic benefits. Take mobility equipment: over six million Americans suffer injuries through falls, with the average cost-per-incident for a Medicare beneficiary estimated at around $8,500. One study suggests wider availability of DME could therefore save both payors and patients huge sums; across three areas of equipment, it estimates a potential $100 billion annual saving.4
But in order to realize these benefits, clinicians, DME providers, and payors must coordinate efficiently to process and fulfill complex product requests:
Clinicians kickstart every DME order, as equipment is often essential to continue treatment or discharge patients. They are responsible for:
DME providers are accredited, Medicare‑enrolled providers who do more than just fill orders—they verify insurance, process claims, deliver equipment, and train users in safe operation. High‑quality providers continue providing maintenance and support, ensuring equipment remains functional and dependable for patients in the long run.
Payors—including Medicare, Medicaid, and commercial insurers—set coverage rules by defining medical necessity, establishing payment terms, and requiring documentation for DME approval. Through tools like prior authorization and coverage limits, they work to balance patient access with cost control. This gatekeeping ensures that the right patients receive the right equipment at the right time.
A well‑structured workflow ensures effective and appropriate use while safeguarding patients and payors:
Care delivered via DME providers is demonstrably better: a recent study showed that patients using DME providers had 35% lower total costs of care—about $3,875 less per year compared to those using pharmacy channels—alongside better adherence and fewer emergency visits.5 This highlights the vital role DME providers play in keeping patients healthier, supporting long-term health outcomes, and reducing unnecessary spend.
Traditional DME ordering relies heavily on manual processes that create delays, errors, and frustration for patients and providers alike. Fax-based orders routinely get lost, require multiple clarifications, and lack real-time status visibility.
Digital ePrescribing platforms like Parachute Health eliminate these inefficiencies by connecting clinicians directly with qualified DME providers through secure, automated workflows. This connected digital ecosystem increases transparency and accountability to help patients get their DME faster.
The Parachute Platform's AI-powered intake digitizes fax orders, built-in logic validates documentation completeness, and an exclusive patient tracker allows patients to follow their order status via mobile web app and text messages.
Over 270,000 clinicians and 3,000 DME provider locations use the Parachute Platform to:
This efficiency directly translates to faster equipment delivery for patients who need DME to maintain their health and independence.
Ready to streamline your DME ordering process?
* Clean orders are orders that are accepted by the DME providers upon first submission.
1 https://pmc.ncbi.nlm.nih.gov/articles/PMC8140591/
2 https://bmchealthservres.biomedcentral.com/articles/10.1186/1472-6963-13-467
3 https://www.nature.com/articles/s41746-024-01040-9
4 https://www.vgm.com/communities/how-investing-in-dme-could-save-billions-of-dollars
5 https://www.northcoastmed.com/dme-vs-pharmacy-sourced-cgm-study