CMS limits stock relationship between DME suppliers and practices

8 October 2009

A provision added to the Medicare Program Integrity Manual places new limitations on arrangements in which suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) maintain inventories of such items within physician practices. These relationships (commonly referred to as ‘stock and bill’ or ‘consignment closet’ arrangements) are only permissible under certain conditions identified in the new Medicare provision. Although the effective date of this change is September 8, 2009, the implementation date was delayed until March 1, 2010. Additional details are available in the following CMS MLN Matters publication:

Compliance Standards for Consignment Closets and Stock and Bill Arrangements (PDF)