Uncertainty surrounding the return of Medicare’s competitive bidding program (CBP) has created challenges in the M&A market for durable medical equipment (DME). But deals are still getting done and activity should pick up as more information becomes available, say analysts. Unlike previous rounds, the next round of CBP focuses mainly on supplies, including urologicals, ostomy and catheters, along with continuous glucose monitors (CGMs) and insulin pumps, and certain braces. Not included, as of press time: traditional DME like respiratory equipment, beds and wheelchairs, making those categories an attractive bet for some buyers, says Brendan Schroeder, vice president at Provident Healthcare Partners.
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Source: https://www.hmenews.com/article/bidding-program-creates-headwinds-for-deal-activity-valuations