Multiple Cost Impacts Hitting HME Providers

The 2022 edition of VGM’s HME Delivery Cost survey shows a variety of pressures impacting the operations of HME businesses.

VGM & Associates has released the latest edition of its Delivery Cost Survey, and the results show a variety of cost pressures impacting the operations of HME provider businesses. 

VGM conducted previous surveys in 2018 and 2021, and for 2022, it VGM members on the costs of delivering HME and information on operational challenges such as supply change issues, employee wages, product acquisition cost increases, freight cost increases, and personal protective equipment (PPE). 

The survey also studied the current wage levels of three common positions —delivery technician, billing personnel and office staff — to assess the cost of overtime and employee benefits, as well as any difficulties maintaining sufficient staffing. 

“While I suspected the various costs and related factors in securing appropriate HME delivery services would increase — as compared to our previous two surveys — I underestimated the cumulative pressures on the business operations of these companies,” said Mark Higley, vice president of regulatory affairs for VGM Government Relations. “I anticipated the higher vehicle expenses (due to the large fuel increases) but was rather stunned by the array of ancillary demands (e.g., supply chain, surcharges, freight, overtime, etc.) facing these most critical organizations serving the most cost-effective patient population.” 

The 2022 results are broken down into eight geographic regions and have added a breakdown by company size: Small (1-10 employees), medium (11-50 employees), and large (more than 51 employees). 

The 2022 Delivery Cost Survey is available at: www.vgm.com/services/government-relations/resource-center/delivery-cost-survey/

Ongoing Survey Effort

VGM Conducted its first Delivery Cost Survey in 2018 and the results outlined the financial pressures on HME businesses. Industry advocates shared that data with government officials and lawmakers to argue for adequate reimbursement for HME. 

Due to the pressures from the COVID-19 pandemic and public health emergency, VGM Government surveyed its members in 2021 about the costs associated with delivering HME. That survey was dubbed VGM’s 2021 Home Medical Equipment Delivery Cost Report, and summarized responses from nearly 100 individual HME providers. 

The 2021 Delivery Cost Report is available at: www.vgm.com/services/government-relations/resource-center/delivery-cost-survey/

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