VieMed Healthcare (Nasdaq: VMD) credited well-timed diversification and the acquisition of Lehan’s Medical Equipment for its strong third-quarter 2025 performance.
VieMed CEO Casey Hoyt and COO Todd Zehnder made their remarks during a Nov. 6 earnings call for the Lafayette, La.-based company. VieMed announced the acquisition of Lehan’s, based in DeKalb, Ill., in May and completed the deal in July.
“Our team continues to execute at a high level, driving growth across all of our core service lines while expanding the reach and impact of our patient care model,” Hoyt said on the call. “As of quarter end, our team has grown to 1,386 dedicated employees across the country. This includes the new members of our VieMed family who joined us through the acquisition of Lehan’s Medical Equipment. Because the Lehan’s team onboarded early in the quarter, we were able to experience a full quarter of collaboration and integration as they work together to align systems, processes and culture.”
Diversification strategies pay off
Proof of VieMed’s diversification success included that while the provider’s core ventilation business “continues to grow at impressive levels,” Hoyt added that ventilation “now accounts for less than half of our net revenue for the first time in over a decade. The shift reflects both the enduring strength of our legacy services and the rapid expansion of new service lines, positioning VieMed for sustainable, diversified growth and long-term value creation.”
Despite announcing that shift for the ventilation business, it “remains the cornerstone of our business,” Hoyt said, noting that ventilation provides “a strong and reliable foundation as we continue to expand and diversify our services.”
Ventilation revenue for the third quarter again achieved double-digit growth year over year, “demonstrating sustained demand for our differentiated clinical model,” Hoyt said.
He also pointed to “an important win for patients and the courts regarding Medicare Advantage coverage” for ventilation. Hoyt expects those changes “to significantly improve access and streamline approvals.”
Those changes are currently a work in progress. “We continue to execute on the implementation of the new national coverage determination requirements for at-home ventilation,” Hoyt said. “While the policy took effect in June, many of its impacts will begin to materialize in the coming months. The regulatory process toward clear and objective qualifying criteria is something we’ve long advocated for, and we’re pleased to see these efforts coming to fruition.”
Hoyt said VieMed’s sleep business “accelerated meaningfully this quarter, driven by record new patient starts and continued expansion of our long-term resupply base.” New sleep patient numbers grew 96% year over year, and VieMed’s resupply sleep patient numbers grew “51% year over year and 33% sequentially” from the previous quarter.
“For the first time since disclosing our new sleep metrics, our resupply population surpassed our PAP therapy rental base, an important milestone that highlights the strength of our model in converting short-term therapy patients into lasting resupply relationships that generate recurring revenue,” Hoyt said. “These results reflect strong organic execution and seamless integration, positioning us to deliver another record quarter and reinforce sleep as a key driver of VieMed’s diversified growth.”
Maternal health to drive growth going forward
VieMed’s ongoing diversification was given a strong boost by the Lehan’s acquisition.
“Maternity has now become an exciting part of our portfolio through the successful integration of Lehan’s Medical Equipment,” Hoyt said. “Maternal health is poised to be a significant growth driver in 2026, expanding our footprint beyond respiratory and sleep services while leveraging VieMed’s national infrastructure, operational expertise and clinical excellence.”
Expanding VieMed’s maternal health footprint is also key because it’s a segment that won’t be impacted by Medicare’s competitive bidding program, due to the typical age of patients needing maternal health products. Competitive bidding could be restarted with new rules and requirements per the upcoming home health final rule.
VieMed ‘not afraid’ of potential competitive bidding restart
COO Zehnder said VieMed does “fully anticipate competitive bidding coming back at some point,” but added that VieMed is “not afraid of the bidding program. I think if you’re operationally sound and if you’re larger, you probably tend to win more contracts. I think it was heavily commented on by the public, and there’s a lot of interest in making sure the program is designed correctly. We’ll be paying attention to what the final rule looks like when and if it does come out. We fully anticipate being a participant in virtually all of those CBAs [competitive bidding areas].”
Zehnder reported record Q3 revenue of $71.9 million, “representing 24% growth year over year and 14% sequential growth from the second quarter. This strong performance reflects both solid organic growth and the immediate accretion from the Lehan’s acquisition, which continues to diversify our business and strengthen our foundation for long-term expansion. Gross profit for the quarter was $41.3 million, or a 57.5% gross margin.”
Preparing to support future growth
Zehnder added that VieMed “is also expanding with the addition of maternal health products from the Lehan’s acquisition. This mix is broadening our reach, improving scalability, and supporting an efficient growth model as we continue to scale.
“As we close out the year, our focus stays on disciplined execution, integrating recent acquisitions, and positioning the business for another year of profitable growth in 2026.”
Hoyt said continued innovation will also be “a key driver of our long-term value.” He pointed to revenue cycle management tools, powered by artificial intelligence, deployed in Q3 and “initially targeting our rapidly growing sleep business. Early results are very promising, with improved efficiency, accuracy and scalability in billing and collections.
“These actions enhance VieMed’s ability to pursue strategic growth opportunities, including targeted acquisitions, technology investments, and national service expansion.”
