Decoding DMEPOS Quality Standards, Part 4 – Business and Performance Management

By Kris Ravotti, RRT, RCP, Senior Clinical Compliance Educator

Kris Ravotti serves as a senior clinical compliance educator for DMEPOS, Sleep, Pharmacy, and Dentistry Accreditation Programs at ACHC. A passionate advocate for survey preparedness, Kris is a regular contributor to ACHC’s knowledge bank of FAQs and articles. She also develops audit tools and other materials to support providers on the path to continuing compliance.

Posted: October 20, 2026

Now that CMS requires annual accreditation surveys to ensure DMEPOS suppliers remain compliant with the DMEPOS Quality Standards, it is more important than ever that suppliers fully understand these requirements and how they apply to their daily operations.

This article is the fourth in a series that reviews key components of the CMS DMEPOS Quality Standards and ACHC DMEPOS Accreditation requirements to help suppliers better understand their responsibilities and the importance of maintaining continuous compliance.

In Part 4, we cover the key components for business and performance management. 

Business management

DMEPOS Quality Standards require providers to have one or more individuals with the authority, responsibility, and accountability to direct the organization and its key activities and operations. These leadership functions include management of how the business obtains and supplies appropriate quality client/patient equipment, items, and services.

DMEPOS Quality Standards specify that providers must:

  • Have a physical location with all licenses, certificates, and permits needed to operate displayed in view of all consumers and clients/patients. Copies must be provided, upon request, to government officials or their authorized agents.
  • Provide only products that meet applicable Food and Drug Administration (FDA) regulations and medical device effectiveness and safety standards. Manufacturer copies of features, warranties, and instructions for each type of non-custom fabricated item must be maintained.
  • Comply with all Medicare statutes, regulations, manuals, program instructions, and contractor policies and articles.
  • Implement business practices to prevent and control fraud, waste, and abuse by articulating standards of conduct to ensure compliance with applicable laws and regulations; and designate a leadership position(s) to address compliance issues.
  • Implement financial management practices that ensure accurate accounting and billing to beneficiaries and the Medicare program. Financial records shall be accurate, complete, current, and reflect cash or accrual base accounting practices.
  • Maintain accounts that link equipment and item(s) to the beneficiary and manage revenues and expenses on an ongoing basis as they relate to beneficiary services, including the following:
○  Reconciling charges to beneficiaries for equipment, supplies, and services with invoices, receipts, and deposits.
○  Planning to meet the needs of beneficiaries and maintain business operations by having an operating budget, as appropriate to the business’s size and scope of services.
○  Having a mechanism to track actual revenues and expenses.

Performance management

DMEPOS Quality Standards also require providers to implement a performance management plan that measures outcomes of consumer services, billing practices, and adverse events.

Data collection may target certain aspects of services that have a potential to cause harm or injury; occur frequently, creating a greater than expected number of adjustments, repairs, or replacements; or require significant instruction to ensure safe use and benefit of the equipment and/or item(s).

Monitoring and measuring requirements include, at least:

  • Beneficiary satisfaction with and complaints about product(s) and service(s).
  • Timeliness of response to beneficiary questions, problems, and concerns.
  • The impact of the provider’s business practices on the adequacy of client/patient access to equipment, items, services, and information.
  • The frequency of billing and coding errors (e.g., number of Medicare claims denied, errors the provider finds in its own records after it has been notified of a claims denial).
  • Adverse events to clients/patients due to inadequate service(s) or malfunctioning equipment and/or item(s) (e.g., injury, accident, signs and symptoms of infection, hospitalization). This may be identified through follow-up with the prescribing physician, other healthcare team member(s), or the beneficiary and/or caregiver(s).
  • Input from employees, customers, and referral sources when assessing the quality of the provider’s operations and services.

Key takeaway

Monitoring your organization’s compliance with the DMEPOS Quality and Supplier Standards outlined in this series is an important step to a smoother accreditation experience.

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Discover more articles about DMEPOS Accreditation here.