Quipt reports 'pretty large backlog’ in CPAP setups

CINCINNATI – Despite an industry-wide shortage of CPAP devices that has significantly hampered new sleep setups, Quipt Home Medical Equipment had an “extraordinary” 2021 and plans to build on that momentum throughout 2022, say company execs. 

At the end of December, the company had approximately 8,000 patients waiting to be set up on sleep devices, compared to a more typical 1,000 patients, said Greg Crawford, CEO, on a recent earnings call. 

“We've got a pretty large backlog that's kind of building and that's kind of really an industry-wide problem,” he said. “We're starting to see other (vendor) partners starting to move their product a little bit quicker. So, we do expect that as we go throughout 2022 to see those allocations increase, which will end up relieving some of these back orders.”  

Quipt posted a record-breaking year for its fiscal 2021 with $102.4 million in revenues, a 41% increase compared to $72.6 million for fiscal year 2020.  

Bigger picture, with its heavy focus on home respiratory equipment and services, Quipt is well positioned to take advantage of a “structural shift” toward home health care that has been driven by the COVID-19 pandemic, says Crawford. 

“Whether it be patients, referral sources, payers or lawmakers, it is clear the structural shift is well underway to ensure a patient is treated in a home care setting whenever possible,” he said. “We continue to work with payers on potential opportunities for a shift from fee-for-service toward one that incorporates the service we provide for patients after the delivery of the equipment.” 

To better leverage these opportunities, Quipt completed six acquisitions in 2021, expanding its footprint to 76 locations in 15 states, and plans to continue targeting companies in the revenue range of $5 million to $20 million, says Crawford. 

“There are some desperate sellers because of the situation they are in, and they may not necessarily be a fit for us, given that we can't get products to support the challenges that they currently have,” he said. “The good part of it is there are still other good opportunities out there that we can look into and that we can support, and we would go after them.”