Report Says DME Investment Could Save Medicare $200B Annually

WATERLOO, Iowa—Leitten Consulting has released a comprehensive report highlighting the critical need for Medicare to shift its focus from competitive bidding to proactive investment in durable medical equipment (DME). The report, authored by Brian Leitten, underscores the cost savings and health benefits of providing timely DME to Medicare beneficiaries. 

The report highlights the cost of treatment versus prevention, revealing that the cost of treating injuries and illnesses due to the lack of DME far exceeds the cost of providing the necessary equipment. For example, every dollar spent on mobility DME can save Medicare $62.38 in treatment costs. Additionally, competitive bidding has drastically reduced the number of viable DME suppliers, which limits access for beneficiaries and increases long-term costs. With the growing trend toward home-based care, the role of DME in preventing hospitalizations and managing chronic conditions has become increasingly critical. Finally, the report reveals that investing in DME could potentially save Medicare up to $200 billion annually, substantially lowering overall healthcare expenditures. 

“An ounce of prevention is now worth several pounds of cure,” said Brian Leitten, CEO of Leitten Consulting. “It’s time for Medicare to recognize the immense value of DME in improving patient outcomes and reducing costs.” 

“Our industry continues to be on the front lines of the fight to keep people in their homes, close to family and friends, and in the community where they want to live,” said Ike Isaacson, SVP, VGM government relations. “Our services save lives, and at the same time, they save money. This study further validates the need to promote prevention and early intervention of heath challenges through fully funding the DME/HME services that enhance quality of life and reduce the costs of facility-based care.”