Quipt buys Good Night

CINCINNATI – Quipt Home Medical has acquired Good Night Medical, a business with operations across seven states, for about $7 million in cash. 

The acquisition provides Quipt Home Medical with expansion opportunities into Massachusetts, North Carolina and Texas, where it doesn’t have a presence. 

“Good Night Medical strengthens our healthcare network across multiple states, enhancing our national coverage sphere over an area that includes about 5 million COPD sufferers in the United States,” said Greg Crawford, chairman and CEO. “Furthermore, I believe that this acquisition will help us achieve long term cost saving goals that will drive our future margin acceleration by giving us increased scale across the organization.” 

Good Night has 10,000 active patients, bringing Quipt Home Medical’s total to 180,000. 

Quipt Home Medical’s integration process will include applying its subscription-based resupply program to Good Night and offering new complimentary clinical respiratory products and services, such as ventilation therapy, to the company’s referral and patient base. 

“We see several actionable synergies and believe our strong sleep re-supply business presents us with significant upside as we deploy our technology therein,” Crawford said. “Integration is the key to our ongoing financial and operating success, as it allows us to continue the strong pace of closing strategic acquisitions, alongside the stringent approach to our due-diligence process that provides us acquisition opportunities that work towards our long-term strategic objectives.” 

Quipt Home Medical also provided an update on its sleep therapy business, saying it began April with its largest on-hand inventory of CPAP devices since a significant recall started. 

“As noted in our fiscal Q1 2022 financial news release, we have seen significant backlog, with nearly 8,000 patients waiting for a sleep device,” Crawford said. “It is important to understand that this backlog is extremely sticky, with the entire industry experiencing supply constraints, and we view the revenue impact as delayed not lost. I am cautiously optimistic that as we move through the second half of the year that the supply pressures will continue to alleviate.”