VGM tallies costs by region

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Tuesday, August 7, 2018

WATERLOO, Iowa – The VGM Group has released the results of a “Delivery Cost Survey” that puts into perspective how costly it is for HME providers to provide patients with the necessary equipment.

In New England, for example, providers report that it costs them $22.43 in vehicle costs per delivery and $18 in labor costs per hour, according to the survey. When you take into account the 23.33 miles from business to home and the 31.67 minutes it takes for in-home set up, that’s an average total delivery cost of $67, the report says.

“With the DME industry being a high-touch healthcare service, understanding the costs involved in caring for beneficiaries must be taken into account when determining reimbursement rates,” VGM stated in a bulletin.

VGM has calculated costs for seven other regions: Far West, Great Lakes, Mideast, Southeast, Plains, Rocky Mountain and Southwest.

More than 200 independent providers completed the survey.