AdaptHealth’s Griggs to step down 

PLYMOUTH MEETING, Pa. – AdaptHealth CEO Stephen Griggs will step down effective June 30. 

Griggs joined AdaptHealth in 2021 following its acquisition of AeroCare Holdings, which he founded in 2000 and led as president and CEO until the acquisition. Under his leadership, AdaptHealth added key vendors, launched cross-selling initiatives, integrated its cloud-based workstreams and pioneered e-prescribe, e-ordering and e-delivery services. 

“On behalf of the board, I thank Steve for the critical leadership role he has played at AdaptHealth to help build a market-leading provider of sleep, diabetes, respiratory and other health care solutions,” said Richard Barasch, chairman of the board. “As CEO, he has led the company through the successful integration of AdaptHealth and AeroCare, overseen more than two dozen acquisitions and helped us navigate the challenges of the COVID-19 pandemic, the CPAP shortage resulting from the Philips recall and other market headwinds. Steve leaves AdaptHealth in sound financial condition and much improved operational shape, and we are committed to finding a highly qualified candidate to capitalize on the strategic opportunities that will power the next stage of the company’s growth.” 

The board is working with a leading executive search firm to identify a new CEO and is considering several qualified candidates. Barasch will serve as interim CEO if the company has not appointed a successor to Griggs by the time of his departure. Griggs will not seek re-election to the board at the company’s forthcoming annual meeting in June. 

“I am proud to have worked with the most talented individuals in the industry to deliver on our vision of transforming the health care experience for patients by helping to keep them healthy at home,” said Griggs. “Now is the right time for a new leader to build on our strong foundation of cost-effective, scalable technology and established, trusted patient relationships. I look forward to working with Richard, the board and our leadership team to ensure an effective transition.” 

Company’s Q1 financial results fall short of expectations 

AdaptHealth reported net revenue of $744.6 million for the first quarter of 2023, a 5.4% increase compared to the same period in 2022. Non-acquired growth was 4.7%, net income was 15.7 million and adjusted EBITDA was $134 million.  

“While the first quarter did not meet our expectations, we believe the initiatives are in place to meet our original full-year financial goals,” Griggs said. “As we are seeing stabilization in the organization post-pandemic and post-Philips recall, we are taking the appropriate steps. As such, we have ratified a cost management program aimed at revamping our supply chain infrastructure, rationalizing our real estate footprint, and restructuring our operating model to pre-pandemic levels.” 

A highlight for the company: its sleep division. 

“We are very pleased with the performance of our sleep business, which generated 17.6% of net revenue growth year-on-year,” Griggs said. “We have also seen a rebound in our respiratory business as we have exited the pandemic. However, the strength in these businesses was partially offset by a decline in our diabetes business, largely driven by the pump and supplies categories.”