Skip to Content
Home Blog About Credit Ratings and Surety Bonds for DMEPOS Companies

Blog

No doubt about it, the last several years have not been easy for Home Medical Equipment providers. A rough economy, Medicare’s competitive bidding, and larger “box store” and online-only companies have all made it hard for smaller shops to compete and maintain their standing. Many of these businesses have seen their credit ratings suffer making it even harder for them to continue in the business they love and get the surety bonds they need to continue.  VGM insurance understands these issues and is working to help HME dealers work through these issues and have the best and most profitable businesses they can. A question VGM insurance hears quite often is “How does damaged credit or a lowered credit score affect an HME dealer’s ability to get a surety bond?”  Here’s an answer to this all-too-common problem. In the same way an individual with a history of bad credit and or bankruptcy would have trouble getting a car loan from their local bank, so is the fate of the beleaguered HME/DME provider. It’s a “Catch 22” of not being able to get a surety bond to do business due to bad credit which in turn means you can’t do business and bill the all-important Medicare and stay viable to grow your business and your credit. Medicare surety bonds are supposed to help cut down on dishonest practices and fraud in the industry and help legitimate suppliers serve legitimate customers in need. That’s a good thing. But even legitimate suppliers can fall on hard times and end up with damaged credit and find themselves turned down by bond issuers they have worked with in the past. If your credit has been damaged and you have questions about getting bonds, call VGM Insurance today at (800) 362-3363 or contact them online and talk to one of our insurance professionals about credit issues and getting a surety bond.  We have special programs for VGM member companies and for insurance customers to help you get a surety bond.  Put our years of experience to use for you!

0 comments

Back to Top