Quipt ready to move past disappointing Q2 

CINCINNATI – Quipt Home Medical is still feeling the downstream effects from the loss of a significant number of Medicare Advantage patients, but company execs say they are confident they are on track to reignite growth this year. 

Revenue declined 6% for the second quarter of 2025 compared to the second quarter of 2024, in large part due to the loss of Medicare Advantage HMO members after Humana awarded capitated contracts to other providers. That, in turn, changed referral patterns for other members, say execs. 

“We understood early in the onset of what the revenue impact was going to be, but we clearly underestimated the referral impact as far as their behavior of referring the other Humana patients that are on PPO plans,” CEO Greg Crawford said on a recent earnings call. 

Revenues were also impacted by the loss of a long-term disposable supply contract that was not renewed. 

‘Philips drag’ 

Quipt is also experiencing some cash constraints related to the “mistiming” of returning and getting credit for recalled Philips equipment and transitioning to new vendors, says CFO Hardik Mehta. 

“The Philips recall creates a drag for us because we took a lot of those machines out of servicing patients,” he said. “They are sitting in our warehouse to be shipped, but we haven't received some of the shipping details from Philips. There is some struggle on their end to take (that equipment) back. So, we are kind of in a little bit of a working capital/CapEx overspend category for lack of a better word, because of mistiming between when we are taking equipment off the patient and when we will ultimately get credit from Philips, which we haven't received yet.” 

Refocusing, rebuilding 

Looking ahead, Quipt is focusing on rebuilding patient volume in its rental business and strengthening its market presence, including beefing up sales in underpenetrated areas and launching new therapy offerings, said Crawford. 

The company is also evolving its growth strategy beyond typical DME acquisitions, says Crawford. 

“A central pillar of our forward strategy is to pursue health care system-bound opportunities, leveraging our scalable, repeatable integration strategy,” he said. 

“Our goal is to embed Quipt directly within the hospital discharge ecosystem through preferred provider agreements that deliver coordinated value-based care. We are actively engaged in multiple conversations with leading regional health systems, and we expect to have meaningful updates over the near term.”