Strategic Alignment of Product Development
As Durable Medical Equipment (DME), the Otolith Labs device needs to decide on a strategy for reimbursement. Currently, the company would have an established reimbursement path, but it can be difficult and slow to get reimbursement through DME rental centers. Another option is to take an approach based on the pharmaceutical sample model, using RFID (radio-frequency identification) cards to connect the device to the internet so it can be programmed to “refill” with a monthly subscription. This approach would allow the company to sell the prescription RFID cards, making procurement easier. However, currently, the pharmaceutical reimbursement model is not covered under Medicare/Medicaid for DME.
Which reimbursement model is best for Otolith: the standard DME model or the newer pharmaceutical model, or can both be done simultaneously as different offerings?