Quipt ‘embeds’ with health systems 

CINCINNATI – A new joint venture will allow Quipt Home Medical to grow its patient base right from the source – hospital discharges, say company execs. 

The JV is anchored by three “powerhouse” health systems – Henry Ford Health, McLaren Health Care and Blanchard Valley Health System – and will provide a “scalable blueprint for future partnerships,” said CEO Greg Crawford. 

“These partnerships embed us into the discharge process of a significant numbers of hospitals and affiliated care sites, giving us the ability to serve patients at the exact point in their transitions to the home,” said Crawford on a call to discuss the company’s second quarter earnings. “That’s an incredibly valuable position in today’s health care environment.” 

Cornerstone for Quipt’s evolution 

As part of the agreement, Quipt will also acquire a 60% ownership interest in Flint, Mich.-based Hart Medical Equipment for about $17 million. Hart serves more than 60,00 patients each month through 29 locations across Michigan and Ohio. 

“Hart’s two-decade reputation for clinical excellence and their alignment with health system care coordination perfectly complement our mission of delivering high-quality respiratory and home medical equipment solutions nationwide,” said Crawford. “Hart will serve as a cornerstone in our evolution as a national leader in respiratory-focused home medical equipment.” 

Inorganic and organic growth 

The investment in Hart follows Quipt’s acquisition of a full-service durable medical equipment (DME) provider owned by Ballad Health, an integrated health system comprised of 20 hospitals serving 28 counties of the Appalachian Highlands in Tennessee, Virginia, North Carolina and Kentucky. Quipt is also expanding its de novo footprint, with two new locations in Florida and Alabama already this year. 

Acquisition pull throughs 

Quipt now services more than 325,000 active patients through 160 locations in 27 states, with respiratory care comprising 75% of its product mix. While that product mix is unlikely to change with the new acquisitions, Quipt expects to see new referrals, says Crawford. 

“We’ve got some programs we would like to implement throughout that – those systems that we believe will help drive additional referrals that are maybe going to other providers in the marketplace,” he said. 

‘No shortage of acquisitions’ 

Crawford says Quipt’s M&A pipeline remains strong. He says the company is starting to field a lot of inbound interest. 

“So, we’ve got a full pipeline and expect to continue to evaluate those and work toward closing the best on that’s going to create the most value of us long term,” he said. 

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