A well-executed resupply program can generate consistent, recurring revenue and increase profit margins for DME providers, but reaching that point takes more than good intentions. It requires strategy, efficiency, and a clear understanding of payer rules.
In this guide, we’ll walk through how to build a profitable resupply program from the ground up—from common pitfalls to avoid to how automation can help you scale.
Why Is Resupply So Important for DME Providers?
“Resupply can be critical —it keeps revenue coming in regularly,” says Chris Delposen, Managing Director at Medbill.
For DME businesses focused on respiratory, diabetic, or ostomy supplies, that regularity can mean the difference between surviving and thriving.
Consumable items like CPAP masks, diabetic supplies, and oxygen tubing need to be replaced frequently. Even non-consumables like braces or supports eventually wear out or lose effectiveness. Understanding how to manage each type is key to staying compliant and maximizing revenue.
“There’s a different methodology when it comes to managing consumable vs. non-consumable supplies—and that impacts how you generate revenue from resupply,” says Kelsey Kansler, VP of Revenue Cycle Management and Automation at Medbill. Here’s what you need to know:
- For non-consumables, providers need to align two things: the doctor’s order and the payer’s frequency limits. Failing to meet both can mean missed opportunities for reimbursement.
- For consumables, staying on top of timely outreach and documentation is essential.
In either case, a clear, payer-aligned strategy helps ensure you’re not leaving revenue on the table.
4 Ways to Turn Resupply Into a Consistent, Compliant, and Scalable Revenue Stream
To make the most of your resupply program, you need more than just good intentions—you need a system.
1. Align with Payer Frequency Limits
Each payer has specific rules for how often items can be replaced. Some follow Medicare’s guidelines closely, while others differ slightly.
To stay compliant, providers must:
- Track each patient’s order history to identify when they are next eligible
- Align outreach and order fulfillment with appropriate timeframes
- Document patient contact and verification of continued need
“Providers should aim to maximize both the doctor’s prescription and the payer’s frequency limit,” says Kansler.
Missing those windows means missed reimbursements. Platforms like TrueSight can handle frequency tracking behind the scenes—monitoring payer-specific timelines, flagging upcoming eligibility, and triggering outreach right on schedule.
The result? Timely, compliant orders and fewer missed revenue opportunities.
2. Verify Patient Need and Document Everything
Before sending a resupply shipment, providers must confirm that the patient still needs the equipment. Medicare (and many commercial payers) require this step.
You must:
- Contact the patient (no earlier than 30 days before the expected end of supply)
- Receive and document an affirmative response
- Deliver no earlier than 10 days before the current supply ends
Skipping this process leads to denials and potential audit issues. The right technology can offer assistance by automating outreach and storing detailed communication records.
3. Use Automation to Improve Efficiency
“Without automation software, resupply becomes a manual game that is riddled with errors, inefficiency, and lost opportunity,” says Delposen. Automation replaces guesswork with predictable, repeatable processes that support growth.
Automated resupply systems can:
- Track usage and eligibility
- Trigger outreach campaigns via text or email
- Log patient confirmations and responses
- Generate claims with pre-validated data
These features not only reduce staff burden but also make it easier to scale your program and reduce the risk of human error—a win-win.
4. Monitor Metrics That Matter
To gauge the health and success of your resupply program, track:
- Monthly resupply revenue
- Potential revenue vs. actual revenue captured
- Resupply orders per employee
- Cost of goods sold for resupply items
AI-powered billing platforms like TrueSight automate data collection and generate real-time reports, making it easier for providers to identify trends, spot gaps, and adjust their strategies promptly. High-performing providers continuously evaluate these metrics to fine-tune their processes and maximize profitability.
Most Providers Can’t Afford to Treat Resupply As an Afterthought
An efficient, well-managed resupply program can have a powerful impact on your bottom line. For example, one leading DME provider saw a 6.5% year-over-year revenue increase, reaching $15.6 million, largely driven by a robust and focused resupply strategy.
Beyond boosting recurring revenue, a strong resupply program also improves patient relationships through timely, reliable service and helps you stay ahead of complex compliance requirements, minimizing audit risks.
Ready to take your resupply strategy to the next level?
Take the first step today: Schedule a needs analysis with one of our revenue cycle management specialists.