For home medical equipment (HME) providers looking to expand their offerings, a continuous glucose monitoring (CGM) supply program presents a compelling opportunity. Not only can it improve patient outcomes—it also strengthens your value to the health care community, driving business growth and customer retention.
Starting a CGM supply program requires thoughtful planning, however, as well as an understanding of potential challenges. Let’s break down why it makes sense, how to launch it and how to navigate common obstacles.
Why a CGM Supply Program Makes Business Sense
Continuous glucose monitors (CGMs) have become the standard of care for managing diabetes, offering real-time glucose monitoring that reduces or completely removes the need for fingersticks. By tracking blood sugar trends and time in range, CGMs help patients better control their diabetes.
According to the Centers for Disease Control and Prevention, approximately 38.4 million Americans have diabetes, and CGMs are becoming the preferred method of managing the condition. As more patients adopt CGMs, the demand for a reliable supply of sensors, transmitters and other accessories continues to grow.
For HME providers, offering CGMs to your patients and health care partners can:
Create a consistent revenue stream. CGM users require regular resupply of sensors, typically on a monthly or quarterly basis.
Increase customer retention. Offering a diverse range of products increases the likelihood of patients staying with your company. This also creates opportunities to cross-sell other product categories (e.g., CPAP, respiratory and wound care).
Enhance patient outcomes. Physicians rely on HME providers to improve diabetes outcomes by ensuring timely delivery of essential CGM components and providing supplemental education. This allows physicians to focus on care plans rather than supply concerns, leading to better diabetes management and improved health.
Capitalize on market growth. As more payers and insurance plans expand coverage for CGMs, demand for these products is expected
to rise.
Steps to Starting a CGM Supply Program
Starting a CGM supply program involves several key steps to ensure compliance, efficiency and a positive patient experience.
1. Understand payer requirements.
Research Medicare, Medicaid and private insurance coverage policies for CGM supplies.
Identify documentation requirements, including prescriptions and medical necessity forms.
2. Establish supplier relationships.
Partner with an authorized distributor to drop-ship CGM products on your behalf, eliminating inventory, freight, warehousing and labor costs. Unlike CPAP or oxygen programs, CGM requires significant capital investment; avoiding this is key. A reputable distributor will provide the infrastructure, tools, education, product training, billing guidance and compliance and marketing support necessary for success.
3. Implement solid billing & compliance processes.
Set up billing systems that comply with insurance requirements and coding guidelines.
Train staff on proper claims submission to minimize denials
and delays.Ensure you have the proper licensing in your state.
4. Develop a resupply workflow.
Create a system to track patient resupply schedules.
Automate reminders and order processing to streamline operations.
5. Educate your staff & patients.
Train employees on product use, insurance guidelines and basic troubleshooting.
Provide patients with clear instructions on how to reorder supplies and how their CGM benefits work through HME.
6. Create a good go-to-market strategy.
- Partner with physicians and hospitals in communities where relationships are already established.
Collaborate with field sales representatives from CGM manufacturers.
Cross-market to patients whom you already serve.
Connect with payers you are contracted with to ensure you’re on their list of preferred suppliers.
Overcoming Common Challenges
While a CGM supply program offers many benefits, there are some challenges to consider. Here is how you can address them:
Insurance Complexity: Navigating insurance coverage and reimbursement is tricky. Having a dedicated billing team familiar with CGM policies can ensure timely and accurate claims processing. Many plans cover CGM products through both the durable medical equipment and pharmacy channels, which can cause confusion in the prescriber and patient communities. Be ready to help patients navigate these challenges.
Inventory Management: It’s essential to maintain a consistent supply
chain for your CGM products. Partner with a distributor that drop-ships orders directly to patients on your behalf—branded as if they are
coming from you—which will eliminate the need for inventory and warehousing costs.Patient Engagement: Patients may forget to reorder supplies, leading to gaps in care. Automated reminders and patient outreach help prevent these disruptions.
Compliance & Documentation: Insurance and regulatory requirements demand accurate documentation. Implementing electronic systems to track and store records helps ensure compliance.
Final Thoughts
With the growing prevalence of diabetes, expanded insurance coverage and strong patient interest, entering the CGM market is a strategic move for HME providers looking to expand their business while making a positive impact on the health care community. By implementing the right technology, compliance strategies and patient engagement tools, your business can capitalize on this growing sector while improving the lives of patients who rely on CGMs.
Are you ready to expand your product portfolio? Start working on your CGM business plan today and position your business for long-term success.