Quipt Home Medical is Leading the Respiratory Device Care Market to the Future

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.

Conditions related to aging, chronic diseases, physical impairments or the medical needs of loved ones, among others, are vital concerns that people have to deal with throughout their lifetime. Most importantly, these issues form an essential part of the circumstances that define our quality of life.

Currently, the world faces a global health emergency in that the number of patients with sleep disorders, including sleep apnea, and the need for respiratory solutions have become a significant health burden worldwide. For example, recent reports show that an average of 22 million Americans suffer from sleep apnea, with 80% of the cases of moderate and severe obstructive sleep apnea undiagnosed. 

Quipt Home Medical Corp. QIPTQIPT, a leading provider in the home medical equipment industry focused on end-to-end respiratory care equipment across 51 locations, is working to resolve these issues and other medical needs through its combined industry experience of over 60 years. The company aims to set the standard for the home health industry and meet the one-of-a-kind needs of the market’s patients.

Why is Quipt Home Medical Different?

Respiratory-related conditions and the demand to provide patients with different approaches have increased between 2019 and 2020 at a compound annual growth rate (CAGR) of 261.1%. In fact, according to recent reports, the respiratory device market is expected to reach $29.9 billion by 2025 from $16.0 billion in 2019, at a CAGR of 12.5%.

Quipt Home Medical is a premier provider of clinical respiratory equipment through a network of over 17,000 referring physicians worldwide and the delivery of nearly 250,000 pieces each year that help to improve clinic efficiency.  

The company’s innovative platform leverages technology and strong regional distribution to streamline all phases of the durable medical equipment (DME) delivery process while operating a successful business model that is truly patient-centric. 

Its primary business objective is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating services and making life easier for the patient. 

Diversified Product Offering 

Quipt Home Medical is focused on diversifying its product offering through the continuum of care to establish broad-based touchpoints inside of referring healthcare institutions and with referring physicians. Here are a few of its product offerings:

Daily Ambulatory Aides

The company is a leading provider of daily living aids, including a wide range of simple and practical aids for everyday activities like eating, dressing, bathing and walking, helping to make life a little easier.

Respiratory Equipment Rental 

From bilevel positive airway pressure (BiPAP) and continuous positive airway pressure (CPAP) machines to oxygen concentrators and ventilators, the company rents a variety of the latest and most popular respiratory therapy equipment for adult and pediatric respiratory care. 

The company allows facilities to offer critical therapies to its patients without any upfront investment in equipment through its rental program. The company enables consumers to rent stand-alone equipment or a complete therapy option with or without the services of a respiratory therapist.

Home Ventilation

Quipt Home Medical specializes in providing ventilator equipment and aids. The company helps ventilator-dependent patients to have as much normalcy as possible in their lives while still receiving complex medical treatment. Quipt Home Medical provides both invasive and non-invasive ventilator treatments.

Oxygen Therapy

Recent studies have shown an aggressive increase in the utilization of oxygen among chronic obstructive pulmonary disease (COPD) patients. With an increase of over 15% in just a few years alongside the growth of other diseases, it makes sense that the home oxygen market is undergoing rapid expansion.

Quipt Home Medical is poised to effectively serve this expanding market through both current geographical distribution alongside a large team of respiratory therapists trained to help reduce readmissions from disease-state complications.  

Sleep Apnea & PAP Treatment

Cases of sleep apnea have significantly increased in recent years, especially with obesity proven to be a strong contributing factor;  patients requiring assistance with sleep apnea will likely continue to increase.

Quipt Home Medical uses a simple, comfortable and convenient sleep testing system to allow its patients to test at home and mail the results back. Once the test is received, it is reviewed by one of its board-certified sleep doctors and the results returned in a secure fashion. If the patient’s physician prescribes an assistive airway device, Quipt Home Medical is perfectly positioned to assist the patient with their positive airway pressure needs as well.

Equipment Solutions 

With obesity, rising cases of COPD and increasing numbers of elderly patients COPD,, the need for medical equipment has never been so apparent. The current demand for medical equipment ranges from mobility assistance to airway management equipment. Quipt Home Medical offers a one-solution opportunity for patients, hospitals and physician groups for an overall improved and easier experience.

Power Mobility 

Quipt Home Medical offers a variety of complex power wheelchair options, each incorporating items and components to address specific needs. 

Most insurances, including Medicare, require a respiratory professional to be involved in the evaluation and selection process of complex rehab equipment. Quipt Home Medical’s therapists partner with the patient from the evaluation process through the delivery of the complex rehab equipment.

Mergers & Acquisitions Strategy

Quipt has three facets to their acquisition approach, the first being a focus on heavily-weighted respiratory companies in the revenue range of $5 million to $20 million with consistent annual EBITDA margins between 10% and 20% plus and large distribution volume which can be leveraged by their platform.

The second facet, being focused on scaling into a national provider by acquiring sub-$5 million revenue targets with the strategic goal of expanding their payor mix and expanding their geographical footprint across new states.

The third facet being substantially larger opportunities that would be more meaningful from a revenue, EBITDA, active patient base, and geographical reach standpoint.

Corporate Highlights

Recently, the company has gone through several positive changes:

• Uplisted to NASDAQ under the symbol QIPT on May 27th, 2021 
• Rebranded from Protech Home Medical to Quipt Home Medical, which the company will utilize to accelerate organic growth opportunities 
• Executed a 1-for-4 reverse split as part of its uplisting
• For its Q2 of Fiscal 2021, the company posted significant gains year over year:
• Revenue for Q2 2021 of $24.2 million; representing a 36% increase
• Adjusted EBITDA for Q2 2021 was $5.4 million, representing a 28% increase 
• 22.2% Adj. EBITDA Margin
• 155% increase in resupply set-ups
• 11% organic revenue growth 
• 27.2 million in cash as of March 31, 2021.
• Undrawn credit facility of $20 million as of March 31, 2021.

For more information, visit the company’s website.

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.