Quipt misses target but ‘optimistic’

CINCINNATI – Quipt Home Medical has made organic growth a top priority in fiscal year 2025, after it missed its target of 8% to 10% in fiscal year 2024, company execs say.  

The company reported year-over-year organic growth of just 3% for FY 2024, amid industry-wide headwinds, including a $5 million revenue hit related to the expiration of the 75/25 Medicare blended reimbursement rates on Jan. 1, 2024, and the loss of Medicare Advantage members due to a capitated agreement between Humana and AdaptHealth/Rotech Healthcare. 

Despite the headwinds, Quipt delivered record revenue of $245.9 million for FY 2024, a 16% increase year-over-year. 

“Fiscal 2024 was a resilient year for Quipt and we’ve entered into fiscal 2025 with regained momentum across our core business,” said CEO Greg Crawford during a call to discuss the company’s financial results for the fourth quarter and full year FY 2024. “Driving organic growth is our top priority.” 

Another headwind: The Change Healthcare cyberattack, which had a $3 million impact on its accounts receivables. 

Tech & deals 

Quipt continues to make strategic investments in technology and has expanded its sales force to support that growth goal, say execs. 

“We’re optimistic about our ability to sustain these underlying positive trends, supported by strong referral activity and demand for our end-to-end respiratory solutions,” said CFO Hardik Mehta.  

Execs also told analysts that, despite the lack of activity in 2024, acquisitions focused on “heavily-weighted respiratory businesses” remained part of its strategy going forward. 

“There’s certainly no shortage of targets out there,” said Crawford. “For us, it’ll be the right target in the right geography and for the right price.” 

‘On the right side’ 

Last month, the Securities and Exchange Commission said it had found no evidence of wrongdoing by Quipt as part of a civil investigative demand from the U.S. Attorney’s Office for the Northern District of Georgia, but the overall investigation remains open at the Department of Justice. At issue: Whether the company may have caused the submission of false claims to government health care programs for CPAP equipment. 

“We've given them everything and we're kind of waiting on them to decide whether or not there was any wrongdoing or anything,” said Crawford. “So, we haven't been notified of anything. Once again, we feel pretty strong in our billing practices. So, we're pretty confident that we end up on the right side of this at some point.”