Accendra Health lags in Q1 but lays groundwork for standalone status
By HME News Staff
Updated 8:46 AM CDT, Wed May 13, 2026
RICHMOND, Va. – Accendra Health’s overall growth rates during the first quarter were “not where they need to be,” but execs say they’ve laid the groundwork for long-term health as a standalone company.
Streamlining after loss of contract
The company has mostly completed its previously announced exit from its contract with a large commercial payer while working to ensure continuity of care for patients, CEO Edward Pesicka said on a recent earnings call. That included the sale of equipment for cash proceeds of $82 million, resulting in a book gain of $52 million, and the transition of personnel, along with other variable and certain fixed costs, all to the same industry player.
“This solution provided the best outcome for all stakeholders, particularly patients, and also allowed us to quickly begin the rationalization of our corporate infrastructure as we pivot away from this large commercial payer,” said Pesicka.
Signing new contracts
Accendra Health recently reached an agreement for an exclusive multi-year extension with its largest commercial payer for soft goods, including ostomy, urology, diabetes and incontinence, says Pesicka.
“This extension of the long-standing partnership provides certainty for our business in the years ahead,” he said. “Going forward, we will continue to be excited about pursuing both fee-for-service agreements, as well as capitated agreements, which still can be very compelling under the right circumstances.”
Keying in on sleep
Accendra Heath is doubling down on its sleep business, which grew 4% in the first quarter year-over-year, says Pesicka.
The company recently piloted a Sleep Center of Excellence to serve as a centralized point for PAP initiation. Previously, it launched a Sleep Journey program to improve adherence rates and average order value.
“The combination of the Sleep Journey and our new Sleep Center of Excellence will enable us to improve patient capture and patient adherence and to enhance the experience for all stakeholders, patients, providers and payers, which should result in improved growth,” said Pesicka.
Strengthening balance sheet
Accendra Health has also announced a more than $1.5 billion comprehensive balance sheet optimization transaction with commitments from existing creditors that the company says will strengthen the balance sheet, significantly extend maturities and reduce total leverage.
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