Quipt: Sleep woes ‘hold back’ organic growth

CINCINNATI – Key to driving organic growth at Quipt Home Medical is how quickly the company is able to recover on sleep, say execs. 

The company posted a quarter-over-quarter organic growth rate of 2% for the third quarter of 2022. 

“(Sleep) is really the one thing that is holding us a little bit back right now,” said Hardik Mehta, CFO, on a recent call to discuss the company’s earnings. “To the extent that we are able to get good loan allocation on the CPAP devices and overall CPAP devices continue to flow through, we would definitely be able to beat that 2%.” 

Of course, the lack of access to CPAP devices also directly impacts the company’s resupply business. 

Currently, Quipt has a backlog of 6,000 patients, an improvement from more than 8,000 in the first fiscal quarter, says CEO Greg Crawford. 

“Over the coming quarters, as the backlog continues to ease, that represents a nice tailwind for us,” he said. “We believe there is a reason to be optimistic about the supply chain pressure continuing to alleviate as we continue through the calendar year. Moreover, we have not factored in any supply from Philips at this time in our forecasting.” 

Looking ahead to other opportunities for growth, Quipt is embracing its new partnerships with UnitedHealthcare and Cardinal Health at-Home, which will enable the company to expand into additional service verticals, including ostomy, urological and incontinence supplies, says Crawford. 

“We’re starting to see a lot of inbound calls for those types of supplies and Cardinal is a great distribution arm for us,” he said.