We build 13-week rolling cash forecasts that account for Medicare reimbursement lag, inventory replenishment cycles, and payer mix shifts so DME suppliers know whether they can afford the next oxygen concentrator order or staff payroll before the decision is made.
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We build 13-week rolling cash forecasts that account for Medicare reimbursement lag, inventory replenishment cycles, and payer mix shifts so DME suppliers know whether they can afford the next oxygen concentrator order or staff payroll before the decision is made.
DME suppliers face cash timing problems that do not show up on a P&L. Medicare may take 30 days to reimburse a CPAP setup that required inventory outlay 60 days earlier. A denial wave from a single payer can erase two months of margin before the owner realizes collections have stalled. Inventory sits because a sales rep over-ordered walkers, and the cash tied up in slow-moving stock prevents restocking the respiratory consumables that actually turn. By the time the bank balance looks wrong, the supplier has already missed a vendor payment or cannot make payroll without a line draw.
13-week rolling cash forecast that models Medicare and Medicaid reimbursement lag by claim type, inventory replenishment cycles, and payer mix to show available cash before each decision
Daily cash position dashboard linking bank balance, unbilled claims, pending reimbursements, and aged A/R so the owner knows real liquidity, not just what the GL says
Scenario models for payer mix changes, denial rate spikes, and inventory turns so the supplier can stress-test whether a new product line or staff hire is affordable under realistic collection assumptions
Working capital calendar that synchronizes inventory ordering, vendor payment terms, payroll, and expected reimbursement dates to prevent cash gaps that trigger line draws or late fees
Buyers assign DME suppliers multiples between 3x and 12x EBITDA depending on subsegment, with commodity DME at the low end and respiratory or CPAP operations commanding 7x to 12x. A supplier with forward cash visibility and disciplined working capital management demonstrates operational maturity that supports the higher end of the range. Diligence teams discount offers when cash flow is opaque, inventory is bloated, or the owner cannot explain reimbursement timing, because these gaps signal hidden working capital risk that survives the transaction.
active cash management for durable medical equipment suppliers is the intersection page. Read the full durable medical equipment suppliers advisory angle, the general active cash management overview, or run the Value Creation Assessment to see where your practice stands.
We pull your historical remittance data by payer, product code, and MAC region to calculate average lag from claim submission to cash receipt. That lag becomes the baseline in the 13-week forecast, and we update it monthly as reimbursement patterns shift so cash projections reflect your actual collection cycle, not a national average.
We build an inventory replenishment model that classifies SKUs by turn rate and margin, then links purchase timing to your cash forecast. Before a reorder goes out, you see whether that capital would be better allocated to high-turn CPAP supplies or masks, or whether the slow-moving walkers can wait another month without impacting service levels.
We update the rolling forecast weekly, so a denial spike or payer mix change flows through immediately. You get a revised 13-week view showing the new cash position and how long you have to fix billing issues, renegotiate terms, or adjust inventory spend before liquidity becomes a problem.
The forecast shows exactly when that batch will hit the bank and how much liquidity you will have after it arrives. If the gap between now and that payment is wider than your vendor terms or payroll schedule, we can model which expenses to defer, which inventory orders to delay, or whether a short-term AR financing arrangement makes sense until the reimbursement clears.
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See advisory angleThe Keystone Value Creation Assessment™ audits your last 12 to 36 months and gives you a written summary whether you engage us or not. If there is not a clear opportunity to create value, we will tell you directly.