Home Medical Equipment (HME)
A broader category that includes DME plus associated supplies and services intended for use in a patient's residence.
Home Medical Equipment (HME) is often used interchangeably with DME, but HME is technically a broader term that also encompasses associated supplies (such as tubing, masks, and filters for CPAP therapy), respiratory therapy services, and enteral nutrition equipment. Many providers use 'HME' as their preferred industry label.
HME providers typically offer a mix of rental and purchase items. Rental items — hospital beds, concentrators, CPAP, nebulizers — are the operational core of most HME businesses because they recirculate: each unit is rented, returned, cleaned, and rented again. This cycle is what makes serialized tracking essential.
The HME industry operates on thin margins (8–15% net for most providers), which means lost or idle equipment directly erodes profitability. A single untracked oxygen concentrator that walks out the door and is never recovered can represent $800–$1,200 in capital loss plus foregone rental revenue.
HME providers are subject to the same Medicare DMEPOS supplier standards and accreditation requirements as pure DME suppliers.