Quipt Home Medical Corp. (Nasdaq: QIPT) is continuing its growth push.
On July 7, the Cincinnati-based company announced its acquisition of a health system-owned medical equipment provider generating $6.6 million in annual revenue. The deal also includes a preferred provider agreement that positions Quipt as the go-to durable medical equipment (DME) supplier for 20 hospitals across four states.
The medical equipment provider was owned by Ballad Health, Quipt specified in its announcement. Ballad operates across 29 counties in Northeast Tennessee, Southwest Virginia, Northwest North Carolina and Southeast Kentucky.
“Acquiring this Ballad Health-owned medical equipment provider and concurrently entering into a preferred provider agreement with Ballad Health exemplifies our commitment to creating lasting, system-wide health care partnerships that enhance the delivery of home-based care,” Quipt CEO and Chairman Greg Crawford said in a statement.
While the acquired asset’s name was not disclosed in Quipt’s announcement, it’s clear that the business was sizable.
In addition to generating $6.6 million in annual revenue, Quipt noted that the business served more than 12,500 active patients across its four branches. The purchase price was $1.6 million.
“I anticipate that this transaction will help establish a scalable playbook that we can deploy across the country, partnering with leading health systems to integrate care, reduce readmissions and support patients in the home setting,” Crawford continued. “As we layer in our proven operating model, we see this unlocking meaningful organic growth across the region and providing a national roadmap for future expansion.”
The acquisition expands Quipt’s footprint across the Mid-Atlantic and Southeast regions and strengthens its relationships with hospital partners – a key priority in Quipt’s ongoing strategy.
“We view this as a template for future strategic growth, uniting Quipt’s operational excellence and patient-first approach with health systems’ market expertise and patient relationships,” Crawford said.
This marks the latest in a string of deals for Quipt, which has made multiple acquisitions in recent years to accelerate growth. In 2023, for example, Quipt completed the acquisition of Great Elm Healthcare, adding about $60 million in annual revenue and significantly expanding its respiratory care presence.
Generally, Quipt has pursued targets that offer both scale and strategic referral sources, as the company builds out its vertically integrated, technology-enabled care model.
The preferred provider agreement tied to the new acquisition is especially notable. Such agreements with health systems are becoming increasingly valuable as hospital discharge planning teams seek reliable partners to ensure smooth transitions to home-based care, including for respiratory patients with complex needs.
Quipt said it funded the acquisition using existing credit capacity and cash on hand.
“Post this transaction, we continue to maintain a very conservative balance sheet, allowing for financial flexibility on a go-forward basis,” Quipt CFO Hardik Mehta said in a statement. “The acquisition and preferred provider agreement accelerates our penetration into underserved rural markets and builds on the company’s strategy of scaling through health system-aligned M&A.”
Mehta teased that Quipt is “actively in discussions” with other health care systems for preferred provider agreements as well.
Quipt is a national provider of DME, respiratory therapy and other home-based health care services, largely focusing on patients with chronic conditions. In fiscal 2024, Quipt reported nearly $246 million in annual revenue
Industry wide, mergers and acquisitions in the home medical equipment (HME) and DME space remain active, with strategic buyers like Quipt, private equity-backed platforms and regional players pursuing deals that offer geographic expansion, referral alignment and clinical capabilities.
Many industry insiders expect that dynamic to continue as providers respond to changing reimbursement models, increasing demand for home-based care solutions and the country’s rapidly shifting demographics.
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