AdaptHealth’s diabetes biz continues to lag

CONSHOHOCKEN, Pa. – AdaptHealth is still playing catch-up with its diabetes business, keeping the company from delivering “enterprise level organic growth,” says CEO Suzanne Foster. 

For the first quarter of 2025, the Diabetes Health segment’s net revenue declined 8% year over year to $138.8 million. 

“We cannot deliver enterprise level organic growth that meets or exceeds market growth, if our Diabetes Health segment is underperforming,” said CEO Suzanne Foster on a recent call to discuss the company’s first quarter 2025 earnings. 

In February, AdaptHealth announced it had remodeled its diabetes outreach program and integrated diabetes resupply into sleep resupply and adopted that segment's best practices, after several declining quarters.  

In a sign of progress, Foster shared that new diabetes patient starts have increased and attrition rates have declined. 

“It just goes back to good old-fashioned leadership and execution,” she said. “I think we have a really good team in place that has dug in, understood the business, and have gotten things organized, and they're executing much better than they were a few quarters ago. We're also appropriately leveraging technology where it matters.” 

AdaptHealth’s sleep patient census grew to 1.68 million patients in the first quarter, but Sleep Health net revenue decreased by 2.8% compared to the same quarter in 2024 to $316.4 million, some of which was anticipated, said CFO Jason Clemens, who also said that there were certain geographies where the company was outpaced by the competition. 

“I'd say in a handful of states, we need to do a little better job,” he said. “I mean it's really as simple as that. Our competitors are getting an edge on us. We need to be faster. We need to sell a little more and pull a little more through on conversion, and we’ve got detailed plans to address that.” 

Bigger picture, AdaptHealth has been revising and refining its long-range growth plans to attain its full growth potential – plans that won’t necessarily include acquisitions, Foster said. 

“(It) is well within our grasp,” she said. “We have an immense opportunity to take market share. Capturing that opportunity doesn't require major incremental investments. It also doesn't require capital intensive M&A. It simply requires being the best operator in the markets we already serve.” 

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