Medically Modern Serves 3,000 Patients After Buying Its Way Into Insurer Networks

Medically Modern serves approximately 3,000 patients nationwide, and most of its revenue comes from insurance reimbursement rather than retail sales. The Mount Kisco-based durable medical equipment supplier, founded in 2023 by Corey Deutsch, built that reach in large part by buying a 71-year-old competitor rather than negotiating insurance contracts from scratch.

Deutsch came to medical supplies through health-care finance, not retail. Before starting Medically Modern, the University of Pennsylvania graduate was a founding partner at Paradigm Opportunities and worked on mergers, acquisitions and strategic transactions at NightHawk Biosciences and medical-device company Semler Scientific. He grew up in Chappaqua.

Years of studying the health-care industry convinced him there was a commercial opening in durable medical equipment, particularly in helping patients get supplies through their insurance. The market was large, but service was poor.

"What stood out was how massive the durable medical equipment market was, yet how underserved patients were," Deutsch said. "The bar for customer service was low, and patients were usually left frustrated."

What does the company actually sell?

Medically Modern's core business is supplying continuous glucose monitors, insulin pumps and related diabetes products. It also handles CPAP machines, compression garments, incontinence supplies and mobility equipment. Most orders ship through home delivery.

The revenue model depends on coverage. "Most of our revenue comes from insurance reimbursement, including Medicare, Medicaid and commercial insurance," Deutsch explained. What a patient pays depends on their plan, the product and whether Medically Modern participates in their network.

Why acquire a 1953-era supplier?

That network question explains Deutsch's most significant business decision: acquiring Mid-Island Medical Supply, a New York company established in 1953. Instead of negotiating insurance contracts from scratch, Medically Modern bought a supplier with decades of existing payer relationships.

"Mid-Island has an excellent reputation," Deutsch said. "They spent decades building relationships with payers, so we didn't have to start from scratch."

The deal brought contracts with Aetna, Cigna, Humana, Anthem Blue Cross Blue Shield, Fidelis Care, New York Medicaid and several other insurance programs.

"Straight out of the gate, we could cover 85% of patients nationwide, and we're continuing to expand our portfolio of payer contracts," Deutsch said.

For a two-year-old company, that coverage is the competitive moat. As Deutsch put it: "You can have the right product, but if you're not in the patient's insurance network, they may not be able to use their coverage to get it."

Deutsch described Medically Modern as independently owned and declined to disclose the financial terms of the Mid-Island acquisition.

What does this change for practitioners?

The strategy is volume through insurance networks, administrative handling of reimbursement, and nationwide distribution without an extensive retail footprint. Technology carries much of that load. Medically Modern has built systems that let manufacturers and health-care providers follow patients through the ordering and authorization process, while patients track their own orders.

"We check benefits, collect the physician order and required records and handle prior authorization and Medicare, Medicaid and commercial insurance billing requirements," Deutsch added.

For clinics, that means the supplier takes on the paperwork that often stalls patient access to equipment. For patients, it means visibility into orders that traditionally disappear into fax-and-phone limbo.

One storefront, national reach

The structure is unusual: a largely digital, nationwide distribution business supported by a single local retail operation. Medically Modern's sole storefront sits at 161 E. Main St. in Mount Kisco, where patients can get advice and arrange supplies, including custom-fitted compression stockings.

"Some people want to come in and talk to someone," Deutsch said. The store also draws walk-in customers who may not realize their insurance could cover equipment they need.

Whether that physical footprint grows remains open. Asked about additional locations or acquisitions over the next three to five years, Deutsch offered no specific commitments.

"Our five-year goal is to be clinics' right-hand partner in getting their patients the care they deserve," he said. That framing suggests the next phase targets provider relationships and payer expansion, not retail square footage.