The manufacturers, distributors, sellers, renters and service people involved in the durable medical equipment industry are part of a very lucrative business that is consistently in demand. Nonetheless, the exposure to risks is as exceptional as the line of work.
In the event a related product is deemed faulty those that supplied it may be liable for associated property damages, bodily injury or death…
Insurance for the Durable Medical Equipment Manufacturer
Risk exposure for each piece of equipment that is manufactured is determined in relation to its type and usage. Specific types of equipment need to be fashioned in very sterile circumstances.
Some equipment is designed to sustain life, and some are used in the hospital’s operating room.
Insurance companies place the varying durable medical equipment into three separate groups:
– For diagnosing
– For therapy
– For monitoring purposes
Insurance for Durable Medical Equipment Dealers
Dealers involve themselves in either the selling or renting aspects of products like:
– Wheelchairs
– Oxygen apparatus
– Respiratory machinery
– Therapy devices
– Orthopedic equipment
Clearly, the renting of the equipment is much more problematic than selling. This is due to the following reality:
– Renting equipment leads to less preventative care and attention to manufacturer’s instructions
– Renting equipment can lead to lawsuits due to breakage or malfunction and their subsequent negative effects on already physically weak patients.
Bond News for the Durable Medical Equipment Provider
Dealers of Durable Medical supplies are subject to Federal bond requirements. In order to get Medicare reimbursements, durable medical equipment providers, as well as those that deal in prosthetics and orthotics and supplies must acquire a $50,000 bond.
Of particular note is the country-wide competitive bidding that will take place between July 16, 2019 and September 18, 2019. Any dealer that has the appropriate bond can take part in the bidding, after which, three-year contracts will be granted to those deemed worthy.
As of now, there are one-hundred-thirty competitive areas in the United States. Each competitive bond area necessitates 1 bid bond. This applies to a provider that bids on all sixteen of the different products presented as well. If there are several bidders for the same bond area product, there is still eligibility. For instance, if there are five or more bidders for the same product, at least five contracts will be presented. If there are fewer than five bidders, at least two contracts will be presented.
An experienced independent agency can help with the acquisition of this and other commercial bonds.