Aging Population Reports A Desire To Stay Home For Care — Will This Cause The Home Health Industry To Grow Faster?

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The American population is aging. 

About 10,000 baby boomers turn 65 every day, and by 2030, 18% of the U.S. population will be 65 or older compared with 13% today.

Most adults 50 and older want to stay in their homes and communities as they age. Those two factors especially — the wish to stay at home and an aging population — may represent an opportunity for home healthcare providers looking into the future over the next decade or so.

One Cincinnati-based company says it recognizes the opportunity and is aggressively pursuing organic and inorganic growth through acquisitions, completing 11 transactions in the past four years.

Durable medical equipment (DME) provider Quipt Home Medical Corp. QIPT focuses on respiratory care. According to sleepapnea.org, sleep disorders, including sleep apnea, have become a significant health issue in the United States. It is estimated that 22 million Americans suffer from sleep apnea, with 80 percent of the cases of moderate and severe obstructive sleep apnea undiagnosed. 

Alongside treating sleep patients, Quipt continues to boost its presence in the home healthcare market by providing other respiratory equipment such as oxygen concentrators in patients’ homes, hopefully reducing the need for costly hospitalizations and improving outcomes in the process.

Mom And Pop Still Dominate

However, the DME sector remains highly fragmented. While there has been a consolidating trend in recent years, the market continues to have large amounts of mom-and-pop companies, Quipt says. These smaller companies could present opportunities for acquisitions by larger DME companies. 

Leading respiratory equipment providers include Apria Healthcare and Linde plc LIN. Owens & Minor Inc. OMI agreed to acquire Apria in January 2022 for approximately $1.45 billion.

Quipt has a regional focus in the Midwest as well as in some Northeastern and Southern states like South Carolina and Georgia. The company has 76 locations in 15 states. Most recently, the company acquired At Home Health Equipment Inc., a business with operations in Indiana that has about $13 million in annual revenue ‎and $1.6 million in net income.

“Our acquisition pipeline is exciting with a plethora of strategic opportunities ranging in size, and we look forward to moving targets through the funnel in the coming months,” Quipt Chairman and Chief Executive Officer Greg Crawford said.

Quipt reported revenue of $29.5 million for the three months ended Dec. 31, up from $22.8 million for the same period in 2020.

The company’s customer base increased 45% year over year from 51,836 unique patients served in the first quarter of 2021 to 75,309 unique patients in the first quarter of 2022.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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