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AdaptHealth sees compression on diabetes business 

AdaptHealth sees compression on diabetes business 

Steve GriggsPLYMOUTH MEETING, Pa. – AdaptHealth’s diabetes business declined for the second straight quarter, but execs say the overall product portfolio well positions the company in an increasingly value-based care world. 

While its CGM patient census grew 8.3% during the quarter, revenue for pumps and pump supplies was down $9 million year-over-year, as a growing number of payers shift patients from the DME channel to the pharmacy channel, said CEO Steve Griggs on a call to discuss the company’s earnings. 

“We went from an organization in diabetes posting double-digit growth to negative growth,” he said. “That obviously has some cost concerns to us. But it also resulted in a larger percentage going forward of more stable (government) business for us.” 

Execs also expect to see continued compression for pumps and pump supplies, which comprise about 20% of the company’s diabetes business, as fast-growing pump manufacturers, some of which maintain a direct-to-consumer channel, increase market share. 

The picture was much brighter for AdaptHealth’s CPAP business in the quarter, with its census of rental patients up 53% over “our lowest point in February 2022,” said Griggs. Resupply patient census is up 10% from the same period. With the COVID-19 pandemic in the rear view, the company’s overall respiratory business turns to a “steady state,” with sequential quarterly growth expected, he said. 

“We remain confident that our purpose-built national network, supplying a full spectrum of sleep, respiratory, diabetes and HME products allows us to gain market share and drive sustained growth in these product lines,” he said. 

AdaptHealth also plans to bring to bear that network to become a larger player in value-based care. In 2022, the company inked exclusive deals with two managed care providers and expects to announce its largest to-date agreement shortly, said Griggs. 

“These agreements help drive better patient outcomes and a better overall experience for patients and payers with a clear and simple billing arrangement that puts a premium on service to patients,” he said. 


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