DME Healthcare Startup
Healthcare

Score reimbursement likelihood before the device ships.

A DME startup was writing off revenue because nobody could predict which placements would get reimbursed. We built an AI engine that checks every case against Medicare and Medicaid policy before anything goes out the door.

AI reimbursement engine for durable medical equipment

Overview

DurationOngoing
Client TypeHealthcare Startup (DME)
ComplianceHIPAA, Medicare, Medicaid
StrategyAI Agents + RAG

Impact, measured in results

20-50%

Of DME placed industry-wide fails reimbursement. That's the baseline we're fixing.

Real-time

Per-patient reimbursement likelihood, checked before the device ships

Audit-ready

Justification tied to specific Medicare and Medicaid rules, generated automatically

DME Healthcare Startup

A healthcare startup in the durable medical equipment space, running patient programs that provide medical devices under Medicare and Medicaid coverage. Industry-wide, an estimated 20 to 50 percent of DME placed in the field fails reimbursement and gets written off.

Why AppStream

We used to guess. Now we know before we ship whether a placement will get paid.

Founder

DME Healthcare Startup

Train AI on real policy. Feed it real patient data.

We took the specific Medicare and Medicaid policies relevant to the client's DME portfolio and structured them into a knowledge layer the AI could reason over. Organized by device type, program, conditions, thresholds.

Then we connected it to live patient data from their EMR via HL7 and FHIR. Diagnoses, clinical history, program enrollment, device data. All normalized and governed for PHI compliance.

The engine matches each case against the relevant rules, produces a reimbursement score, and explains which criteria are met, which are borderline, and what's missing. Staff see the answer before the device ships. If a claim gets questioned later, the documentation is already there.

Challenges

A meaningful share of devices shipped were never reimbursed. Equipment and effort turned into bad debt.
01
Eligibility logic was scattered across staff, binders, and tribal knowledge. No two people applied it the same way.
02
Checking reimbursement meant manually cross-referencing Medicare and Medicaid rules against patient records. It didn't scale.
03
There was no system to score how likely a case was to be paid, or flag what documentation was missing.
04
When payers denied claims, the team couldn't quickly build a structured argument for medical necessity.
05

Outcomes

AI engine trained on the Medicare and Medicaid rules that actually govern this client's DME categories
Live patient and clinical data flowing from the EMR via HL7 and FHIR into the scoring engine
Per-case reimbursement scores with plain explanations of what's satisfied and what's not
High-risk cases and missing documentation flagged before a device goes out
Justification material for audits and appeals, generated from the same scoring run
A platform built to extend as new device types, programs, and payer rules come in

Summary

Provided services

AI AgentsRAG PipelinesSystem IntegrationHL7/FHIR Integration

Our team

JT

Justin Tannenbaum

Solutions Architect

LC

Lukasz Chmielowski

Lead Engineer

CB

Cesar Bustamante

Engineering

DB

Daniel Bukala

Product Manager

Tech stack

.NE
Azu
Sem
HL7
FHI

Stop writing off revenue you should be collecting

If reimbursement decisions at your organization depend on tribal knowledge and manual policy review, we should talk.

Schedule a discovery call