How it runs for DME and HME suppliers
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What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for DME and HME suppliers
- Gross charges, contractual adjustments and cash posted from billing-system month-end reports
- Rental revenue schedule rolled forward and reconciled to active rentals
- Delivered-but-unbilled and prior-auth-pending orders accrued or listed as unbilled
- Inventory value tied to the billing-system count with variances explained
- CloseTrack sign-off log showing each step, the preparer and the reviewer
The KPI that matters here
Close completed and reviewed within five business days of month-end, with every reconciliation signed off.
DME & HME compliance notes
Medicare DMEPOS supplier rules
Medicare DMEPOS suppliers must meet the supplier standards, hold accreditation and keep a surety bond to bill Medicare. Payment then follows fee schedules, competitive-bid amounts and capped-rental rules that decide when revenue is earned. Your books need to reflect those payment rules, not a generic sales model.
Prior authorization
CMS keeps a Required Prior Authorization List for certain DMEPOS items, and claims for those items without an affirmed decision are denied. We flag delivered-but-unauthorized orders as unbilled at each close so cash forecasts stay honest. Authorization work itself stays with your intake or billing team.
HIPAA
Patient names and diagnoses appear on remittances, statements and Brightree exports. Our staff are HIPAA-trained, we sign a BAA, access is logged and files are never downloaded to local devices.
State sales tax on equipment
Many states exempt prescribed durable medical equipment from sales tax while taxing retail accessories and over-the-counter items. We track taxable and exempt sales separately in the ledger so returns can be prepared from the books. Your tax preparer or advisor confirms the rules for each state.
DME & HME software we work in
- QuickBooks Online
- Sage Intacct
- Bill.com
- Gusto
- Brightree
- Bonafide
- TIMS Software
- All 50 platforms
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Frequently asked questions
What is different about a DME month-end close?
Three things. Revenue has to be recognized in the delivery or rental month even though payment arrives later, so unbilled and pending-authorization orders must be reviewed. Rental schedules create predictable revenue drops at month 13 and month 36 that the close should anticipate. And inventory sits in patients' homes, so the ledger count has to be reconciled to the billing system rather than a shelf count.
How do you handle contractual adjustments and write-offs at close?
Contractual adjustments from Medicare, Medicaid and commercial remittances are posted as a separate contra-revenue line from the billing-system adjustment report, never buried in net revenue. Bad-debt write-offs, timely-filing losses and patient hardship adjustments each get their own account with your approval on the list. That makes the P&L show where revenue is leaking.
Can you close faster than five business days?
Often, once the first two or three closes have cleared the backlog and the billing-system reports are pulled on a fixed day. The main constraint is usually the timing of your Brightree month-end reports and the arrival of remittances. Our month-end close service page describes the CloseTrack calendar and how it is adjusted for your systems.
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