DDP bets on maternity products as providers seek stability

ST. PETERSBURG, Fla. – DDP Medical Supply is expanding its product offering to include breast pumps, milk storage bags and related accessories, giving its provider customers a new way to diversify product categories and tap into additional payer sources.

The move comes as many of DDP’s customers, which primarily supply continuous glucose monitors (CGMs), face growing pressure from Medicare’s forthcoming remote-item delivery (RID) competitive bidding program (CBP).

 “We see maternity as a great opportunity to serve their needs,” said Brett Siegal, director of marketing & business development for DDP. “Providers are looking for new categories and this one has real staying power.”

A straightforward path to new payers and steady demand

Breast pumps offer a relatively straightforward entry point into a new product category, thanks to a well-established reimbursement pathway, Siegal says. Under the Affordable Care Act, insurers are required to cover the cost of breast pumps, opening the door to both commercial insurance and Medicaid as payer sources.

Breast pumps also offer dependable demand, he says. More than 3.5 million babies are born in the U.S. each year, and among the 83% to 86% of new mothers who breastfeed, nearly all use a pump, according to government data.

“It’s a very steady business,” Siegal said. “The reimbursement structure is already there.”

Beyond the initial pump, milk storage bags create ongoing demand throughout the breastfeeding period – typically six months to a year.

Additional revenue without added operational burden

DDP is offering maternity products through a wholesale model with no minimum order requirements. Providers can avoid carrying and warehousing inventory; eliminate the labor required to pick, pack, and ship; and access competitive freight rates across both bulk and drop-ship delivery, Siegal says.

“We make it a lot easier,” he said.

DDP’s expansion into maternity products is supported by the distribution infrastructure of sister company Geriatric Medical, which has 80 years of experience and offers more than 30,000 products. The company currently offers breast pumps from Cimilre, Medela, Momcozy, Motif, Spectra and Zomee.