AdaptHealth on diabetes market: ‘The goal is to take market share’

PLYMOUTH MEETING, Mass. – AdaptHealth’s diabetes platform is its fastest growing segment at a growth rate of 10% to 12%, said company execs during a call to discuss the company’s second quarter earnings. 

The diabetes business had total net revenue of $126.5 million for the second quarter of 2020. 

“We’ve been in diabetes a year, and it’s been great out of the gate,” said Josh Parnes, president. “The goal over time is to take market share, but we’re still new in the business.” 

Helping to boost market share: AdaptHealth has acquired Michigan-based Healthy Living Medical Supply, a diabetes management company, one of four acquisitions during the quarter. 

Robust pipeline 

Since the start of the year, AdaptHealth has acquired $300 million in annualized revenue and will continue to make acquisitions, including six already in the third quarter, says CEO Steve Griggs. 

“The pipeline is very large,” he said. “Acquisition activity will be pretty robust for us for the rest of the year and into 2022.”  

Recall’s impact 

Adapt Health reported total net revenues of $229.7 million for it sleep business during the second quarter, with no impact from the Philips recall. The company anticipates, however, that there could be a $30 million impact on net revenues in the second half of the year. 

“Philips has been a great partner for many years, and we are committed to working though this challenge together,” said Parnes. “For our business, there are two operational areas (that will be impacted): the first is patients currently on billable census with products on recall; the second is the supply chain for new devices that could potentially impact our ability to meet new start demand.”