Viemed drives organic growth

LAFAYETTE, La. – Viemed Healthcare is using its “high-touch, high-tech approach” to open doors to new business, including a contract with the Department of Veterans Affairs, says CEO Casey Hoyt. 

“We have been awarded a solicitation contract to place our people in the homes of veterans in need of pulmonary disease management, social services and behavioral health,” Hoyt said during a recent call to discuss the company’s third quarter earnings. “The VA has asked us to track the patient results using our Engage platform and share the results on clinical outcomes and patient satisfaction. I'm very excited about this opportunity to work with the VA on this project, which has the potential to dramatically improve the lives of veterans living with COPD on a widespread national level.” 

Viemed is also in various stages of developing partnerships with a number of large health care institutions, says Hoyt. 

Organic growth 

Viemed saw its ventilator patient count increase 11% to 9,127, representing its highest year-over-year growth rate since the beginning of the COVID-19 pandemic. That growth accounted for approximately 67% of core revenue compared to 78% in the third quarter of 2021, reflecting the company’s ongoing efforts to diversify its product offerings, particularly in respiratory. 

“Our sleep business is setting records for new patient setups, which has pushed our more profitable resupply revenue stream into greater numbers,” said Hoyt. “Our oxygen business is also growing at a rapid pace, which allows us to fully support the patient's care journey across all stages of their progressive respiratory disease.” 

Acquisition pipeline 

Earlier this year, Viemed announced it was forming a team dedicated to acquisitions. While the company has yet to make any buys, that team is “building out a pipeline of opportunities,” says Todd Zehnder, COO.  

“We believe there will be ample opportunities to capture inorganic growth in the coming years,” he said. 

OIG report 

Viemed officials are moving closer to resolving an ongoing issue with the Office of Inspector General and CMS related to certain claims for non-invasive ventilation. The OIG in 2021 issued a report saying most of the Medicare claims submitted for non-invasive ventilation by the company under its original name, Sleep Management, did not comply with Medicare requirements. The company had an ALJ hearing scheduled last week. 

“We are down to eight patients that have been deemed ineligible for several factors,” said Zehnder. “We are hopeful that this will be the last phase of the appeal and we anticipate having a successful outcome during this process. The company paid the $1.1 million that is still being debated and it was recorded as a prepaid asset. We are hopeful to have the outcome of the ALJ hearing before year-end.”