Q1-2020 Durable Medical Equipment (DME) Update
Q1-2020 Durable Medical Equipment (DME) Update
The first quarter of 2020 marked a continuation of the strong consolidation activity in the DME sector in 2018 and 2019. With the impending re-introduction of competitive bidding for Medicare reimbursement of DME products in 2021, businesses are actively positioning themselves to manage tightening profit margins by increasing horizontal scale, diversifying revenue streams, and streamlining back-office functions.
Provident expects the DME sector to be resilient against the negative market effects from the COVID-19 pandemic. While M&A activity in the sector may experience a short-term slowdown, the general upward trend is expected to continue, driven by strong volume demands and the recent entrance of new private equity buyers into the space.
To print and download the full Durable Medical Equipment Update report, please click below…
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