Viemed ramps up M&A, eyes MA plans

LAFAYETTE, La. – M&A and MA were hot topics during a recent Viemed earnings call, as company execs outlined what they see as key opportunities for growth going forward. 

Viemed’s recently announced acquisition of Tennessee-based Home Medical Products, a large regional provider of respiratory solutions, kicks off the company’s acquisition growth initiatives – a priority for the year ahead, say execs. HMP, which currently serves more than 44,000 patients in Tennessee, Alabama and Mississippi, had revenues of about $28 million in 2022. 

“HMP is definitely classified as what we are looking for in terms of going after a good company with a good management team in a different geography that we are not in,” said CEO Casey Hoyt. “They check the box with a few payers that we don’t have, as well. So, it was really just a perfect fit for us.” 

The deal is expected to close at the beginning of June and integration efforts are underway. 

Viemed also continues to invest in capital expenditures, spending about $4.7 million in the first quarter, mostly on vents and oxygen devices. 

“We continue to see an ample opportunity to procure inventory and have not had to turn away any business as a result of supply chain issues,” said COO Todd Zehnder. 

Additionally, Viemed is keeping “a watchful eye” on increased vertical integration in health care, with insurers acquiring health systems, and health systems developing their own insurance plans. Insurers are also increasingly prioritizing Medicare Advantage. 

“We are keeping a watchful eye on how Medicare plans to regulate the quality of care for patients who are on these plans,” Hoyt said. “Regardless, the competitive payer environment is pointing toward adopting more cost-efficient care. Our collaborations with these health systems and payers are well underway, and Viemed is leading the effort in human interaction, coupled with technology.”