Quipt’s organic growth is key in 2023

• Increase in setups, along with national insurance contracts, will pave way for the company to hit 8% to 10% organic growth in 2023 

CINCINNATI – January marked the first month since June 2021 that Quipt Home Medical did not have allocation limits on a connected CPAP device and, exiting the first quarter of its fiscal year, the company expects to be back at pre-pandemic levels for patient setups, says CEO Greg Crawford. 

“This real-time development is a powerful tailwind and will significantly contribute to our organic growth over the coming year,” he said during a recent call to discuss the company’s latest financial results. 

Quipt’s organic growth for the quarter increased by 2% sequentially, with company execs anticipating it to surpass historical levels of 8% to 10% annually in 2023.  

Also key to organic growth this year: national insurance contracts, says Crawford. In April 2022, the company inked its first such contract with UnitedHealthcare. 

“Given the sizable area we have already expanded into this year, we are actively working with additional significant commercial payers to assist them in understanding the benefits of our strong patient-centric approach for both patients and payers,” he said. “We are confident that we will be able to get further national insurance contracts during the first half of 2023.” 

Quipt’s aggressive acquisition strategy is giving it the size and scope to be a significant player for these contracts. Most recently, it acquired Great Elm Healthcare, adding 70,000 patients and seven states to its book of business. 

“(The Great Elm) acquisition provides us increased geography reach, giving us additional opportunities to further expand on our tried-and-true acquisition and integration strategy with highly acquisitive tuck-in acquisitions for our full suite of respiratory care products and services,” said Hardik Mehta, CFO. “(It also offers us) the significant opportunity to increase resupply revenue once sleep patients are onboarded to Quipt's resupply program.” 

Additionally, a contract with Cardinal Health at-Home is expected to bolster Quipt’s organic growth. As part of the contract, the company is adding product lines that include urological and incontinence supplies, as it cross-sells to existing patients, says Crawford. 

"Superior patient care is our top priority in every one of our markets, and we do everything in our power to assist those who require treatment for conditions like sleep apnea, COPD and other chronic respiratory diseases,” he said. “Our aim is to make sure that patients get the treatment they need when, where and how they require it." 

• Read more about Quipt’s acquisition of Great Elm Healthcare.