This Industry, Important for Quality of Life, Is Big Business

Photo by Hush Naidoo Jade Photography on Unsplash

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

As loved ones age or are beset with life-altering conditions, the home is where most people wish to stay. Many don’t want to be forced into a hospital or long-term care facility. When patients are able to remain in their homes, they can often see better health outcomes and maintain a higher quality of life.

COVID also shined a light on the importance of in-home healthcare, both for the sake of limiting the chances of infection to many of the most vulnerable and freeing hospital capacity for those who end up with severe cases of the virus.

In order to stay in the home, patients need access to medical devices — oxygen machines, mobility aids, specialized beds — that keep them comfortable, safe and active. The home medical equipment industry, which serves this need, is large — very large. In 2019, according to the firm Allied Market Research, the industry garnered north of $30 billion in revenue.

Allied projects the global industry to reach more than $56 billion by 2027, representing a healthy 6.1% compound annual growth rate (CAGR). The home equipment market is a large subset of the even larger durable medical equipment market, with just the U.S. durable medical equipment market size valued at $52.9 billion in 2020.

Within the home market, what could be seen as examples of the industry’s success include companies like ​​AdaptHealth AHCO, Apria Inc APR, Viemed VMD, and Amedisys AMED.

Another company in the sector is Quipt Home Medical Corp. QIPT. Quipt states that it has seen operational growth of its customer base — its unique patients are up 47% year-over-year, and its respiratory resupply is up 155%. The company also enjoys gross margins of 75%. The company continues to grow through what it sees as strategic mergers and acquisitions on top of its organic growth.

Most of Quipt’s primary products are in the respiratory device category, a global market sector that is estimated to be worth $29.6 billion by 2026 and already worth about $19 billion in 2021.

The company took in $76.6 million in 2020. According to the equity research firm, M Partners, this is expected to reach $102.5 million by the end of 2021 and $123 million in 2022. 

If you’d like to know more about Quipt you can take a look at its website here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.