AdaptHealth (Nasdaq: AHCO) has reportedly landed the durable medical equipment (DME) business of a large regional health system.
On May 14, a local newsroom serving the Lebanon County, Pennsylvania, market reported that AdaptHealth purchased the DME business of WellSpan Health. The transaction will be effective on June 1, according to the report.
“WellSpan is constantly evaluating the rapidly changing health care landscape throughout the communities we serve to determine how to best continue providing high-quality care,” a WellSpan spokesperson told the outlet.
Conshohocken, Pennsylvania-based AdaptHealth is a home medical equipment (HME) company with 660 locations in 47 states.
WellSpan, meanwhile, is an integrated health system with more than 2,000 providers in its network and more than 220 sites of care, including eight hospitals, home care services and a behavioral health organization. The system serves South Central Pennsylvania and Northern Maryland.
Existing WellSpan Medical Equipment locations are expected to close May 30, according to LebTown’s reporting. WellSpan has three WellSpan Medical Equipment locations in Lebanon, Ephrata and York.
AdaptHealth has not yet announced the transaction, and an HME Business review of AdaptHealth’s recent financial filings resulted in no additional details on the deal. AdaptHealth reported on its Q1 2025 financial results on May 6.
During a conference call with investors that same day, AdaptHealth CEO Suzanne Foster said AdaptHealth believes it could grow even without M&A.
“We have an immense opportunity to take market share,” Foster said. “Capturing that opportunity doesn’t require major incremental investments. It also doesn’t require capital-intensive M&A. It simply requires being the best operator in the markets we already serve.”
While AdaptHealth may not be aggressively pursuing M&A, other C-suite leaders on the call did suggest the HME company had some deals in its pipeline.
“We do have some M&A under LOI (letter of intent),” CFO Jason Clemens said. “Again, if we’re able to close those deals, we’ll talk about it when we execute on that.”
During the first quarter of the year, AdaptHealth’s net revenue was $777.9 million, a decrease of 1.8% compared to $792.5 million during the same period in the prior year.
On May 6, AdaptHealth also announced that it closed on its previously disclosed agreement to sell certain “incontinence assets” in its Wellness at Home segment to a third party. It also signed a definitive agreement to sell certain infusion assets.
“Over the last several months, we have been reviewing and refining our long-range growth plan,” Foster said on the call. “This work confirms that we have a tremendous opportunity to deliver consistent, sustainable, organic growth by simply staying on course with our current strategy.”
“Our plan has been and will continue to be, to remain focused on our four core segments, and to combine our geographic reach and operational scale, with industry leading patient service excellence to capture market share,” she added.
