Tuesday, March 27, 2012

A Beginners Guide to Abbreviations in the Durable and Home Medical Equipment Industry


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Ok. So, you just landed a job at a company that manufactures, distributes or sells durable medical equipment, or DME. If this is your first time in this field, you have undoubtedly noticed the sea of new words, abbreviations and acronyms. Treading your way from day to day the first few weeks can be overwhelming...as if you were in a foreign country.

Lucky for you, this article is your proverbial life preserver. So grab hold my friend. Soon you will be doing the equivalent of synchronized formations impressing your new boss, associates, colleagues, friends, family and maybe even your significant other.

DME Durable Medical Equipment

DME is defined as any medical equipment or device that is intended to be reusable or "durable." DME is almost exclusively prescribed by a doctor, physician, chiropractor or physical therapist and is primarily for home use. Therefore DME is often interchangeable with HME.

HME Home Medical Equipment

HME is defined as any medical equipment or device for use in the home. It is almost always of the "durable" nature. Thus HME is often interchangeable with DME. In fact many times when professionals reference such equipment they will use the term HME/DME or HME/DMEPOS.

DMEPOS Durable Medical Equipment, Prosthetics, Orthotics and Supplies

We have already covered DME. Prosthetics is the medical term for an artificial limb such as a leg or an arm. Orthotics is the term to describe the medical field that deals with the manufacture and application of orthotic devices. It can also encompass the practice of working with the torso.

O&P Orthotics and Prosthetics

Same as above abbreviated differently.

AMA American Medical Association

The American Medical Association is the nation's largest and most powerful association of physicians and medical students. It publishes the Journal of American Medical Association (JAMA) which is the world's largest weekly medical publication.

HCPCS Healthcare Common Procedure Coding System

HCPCS is commonly pronounced as "hick-picks." It is a set of health care procedural codes that, as described on Wikipedia, standardizes the coding system for describing the specific items and services provided in the delivery of health care. It is based on the AMA's current procedural terminology (CMT) and is, as of 1996, mandatory. They help agencies such as Medicare, Medicaid and insurance companies efficiently track and reimburse claims. Codes for durable medical equipment are considered level II and are alphanumeric.

CMS Centers for Medicare and Medicaid Services

The Centers for Medicare and Medicaid Services is a federal agency within the United States Department of Health and Human Services (DHHS). Its purpose is to administer the Medicare program. It also works with state governments to help administer Medicaid, the State Children's Health Insurance Program (SCHIP) and health insurance portability standards. CMS was formerly called HCFA (Health Care Financing Administration).

MAC Medical Administrative Contractor

The abbreviation "MAC" is often used directly following DME. A DME MAC is a durable medical equipment medical administrative contractor. Their sole function is to process medical claims for Medicare. There are four DME MACs jurisdictions in the US, each serving a different geographical region-Noridian Administrative Services, CIGNA Government Services, National Government Services and NHIC (National Heritage Insurance Company). These DME MACs are referred to as durable medical equipment regional carriers, or DMERCs

Conclusion

Of course there are many other words and abbreviations you will run into in this industry, but the ones covered above will definitely get you going. Future articles will tackle more intricate terms in the DME industry.

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