The Shift Toward Digital-First Order Management

The home medical equipment industry is undergoing a rapid digital transformation, driven by increasing demand for efficiency, compliance with new regulations, and the need to reduce administrative burdens on clinicians and suppliers. The latest State of DME report highlights how providers, clinicians, and health plans are adapting to these changes and what it means for the future of the industry.

With +10,000 new provider facilities joining digital ordering in 2024 and +50,000 new MDs signing orders digitally, it’s clear that digital adoption continues to accelerate. In total, 40,000+ unique products are now being ordered through digital platforms, and 3,000+ supplier locations are actively receiving and processing orders, improving access to essential equipment for patients nationwide.

The Role of AI in Streamlining Order Management

One of the biggest advancements in the industry is the rise of AI-powered automation to bridge the gap between traditional fax-based workflows and fully digital ePrescribing. AI Intake enables HME providers to manage both fax and ePrescribed orders within a single platform, reducing manual processing time and improving order accuracy.

“With AI Intake and ePrescribing combined, we can request documentation on faxed orders in a way that encourages referrals to use the platform. This shift, alongside marketing, training, and provider engagement, is helping us move toward full digital adoption. Once referrals transition to digital, direct communication with both referrals and patients makes the process even smoother—reducing back-and-forth and speeding up patient care.” – Med Mart

Health Plan Integration and Regulatory Momentum

In addition to provider adoption, health plan integration has become a key driver in the transition to digital DME ordering. Streamlined prior authorization processes and real-time insurance verification are reducing delays and making it easier for suppliers to secure approvals at the point of care.

With CMS finalizing the interoperability and prior authorization rule CMS-0057, the industry is now under increased pressure to move away from outdated fax-based workflows. The rule mandates that EMRs and payors support integration capabilities, making DME ePrescribing a strategic priority rather than an optional upgrade.

New Parachute Offerings and Health Plan Partnerships

Parachute Health’s footprint in the DME industry has grown since its last State of DME report, with a significant increase in platform adoption.

Key milestones include:

Parachute Health Launches Integrated Solution with Prior Authorization: Parachute now uniquely streamlines the prior authorization process to reduce friction at the point of care and improve patient outcomes.

Breakthroughs in Patient Engagement, allowing suppliers to better communicate with patients, provide order status updates, and secure necessary documentation.

AI-driven Automation, enabling HME providers to use Parachute on faxed and ePrescribed orders, further cutting down processing times and reducing administrative burdens.

Looking Ahead: The Digital Future of DME

The industry’s move to digital ordering is no longer a question of if but when. Organizations that continue to rely on outdated, manual processes risk falling behind as health plans, providers, and regulatory bodies push for fully electronic, AI-driven workflows.

AAHomecare: It’s time to “Destroy the Fax” for DME prescriptions

With increasing digital adoption, regulatory momentum, and AI-driven solutions, the industry is on the brink of a digital tipping point. Are you ready for what’s next?

Annual growth in number of HCPCS ordered

Delightfully simple Digital Ordering and eSigning loved by clinicians

These clinicians practice and order DME across all different care settings.

Clinicians are ePrescribing all kinds of DME and supplies:

Patient Engagement Offerings

The Benefits of the Parachute Platform