HME stands for Home Medical Equipment
HME refers to medical equipment that is appropriate for a home environment and can be managed by a patient or non-professional caregiver. HME billing spans the entire revenue cycle and begins with referrals from hospitals, clinics, and physicians.
Billing then involves steps such as intake, order confirmation, cash posting, and A/R management. Since HME billing requires extensive resources across front- and back-office processes, many businesses choose to outsource their billing to a full-service billing provider.
In short, HME billing is a complex process that begins with a new referral and typically ends with payment on existing balances.
DME stands for Durable Medical Equipment
DME refers to any durable medical equipment that provides therapeutic benefits to a patient with certain medical conditions. Examples of DME include oxygen tanks, walkers, and blood sugar monitors. Thus, DME is a type of HME.
There’s a lot of overlap between DME billing and HME billing because these categories follow similar processes. However, the key difference is the type of device ordered and provided to a patient. So, DME billing still requires the same processes (order confirmation, A/R management, etc.) as HME billing.