Sleep Nation transitions to Verus
FRANKLIN, Tenn. – Sleep Nation and CPAP Care Club have a new name and a new plan.
In January, the companies announced they would change their names to Verus Healthcare, and they plan to add catheters and nebulizers to their product offerings.
“We were pretty good just specializing in CPAP supplies but we got so many requests, it just kind of made sense,” said Rich Roberts, CEO. “It’s difficult to ship a wheelchair through the mail but not the things we are talking about.”
Sleep Nation got its start in 2012 when it acquired CPAP Care Club to create a platform to roll up sleep businesses. Since then, it has acquired nearly 50 companies.
Although plans for the new products are still on the drawing board, Roberts isn’t worried about competing against giants like AssuraMed, which acquired UroMed in January.
“You can call patients patients or you can call them customers, but there’s a level of expectation your customers have,” he said. “They want a Zappos or an Amazon type of experience. They are looking to get that product a few days after they place their order. That’s the expectation that we are trying to fulfill.”
Verus Healthcare will hire field reps to grow the business for the new product lines.
The provider also holds competitive bidding contracts for CPAP nationwide. Although the category took a 47% average cut in Round 2, Roberts says the margins are still good.
“You are seeing that the bid model is kind of working—there’s the potential for some savings,” he said.
Additionally, the provider has managed care contracts in all 50 states and adds new payers every month.
Although Roberts has his eye on future growth, he doesn’t see health care as moving solely toward mail-order providers.
“It’s being pushed to a least-cost provider model,” said Roberts. “Being a mail order and call center sort of defines that, but it’s not exclusive to it.”