Quipt: ‘We’ve got a lot of levers that we’re pulling’ 

CINCINNATI – Quipt Home Medical is focusing on “steady progress” in the face of several headwinds, including an expected $3 million annual impact from the expiration of 75/25 blended Medicare reimbursement rates. 

The company, which seeks to return to 8% to 10% organic growth rate in 2025, has also been impacted by the withdrawal of Medicare Advantage members due to a capitated agreement with other providers and a discontinued disposable supply contract. 

“It’s certainly a steady progress to get (to that organic growth rate),” said CEO Greg Crawford on a recent call to discuss the company’s first quarter earnings for fiscal year 2025. “We’ve got a lot of levers that we’re pulling.” 

Quipt says the cumulative impact of these three events is estimated to be about $8 million. 

One lever the company is pulling: Its resupply business, which is the “cornerstone” of its recurring revenue, accounting for 77% of total revenue in the first quarter of 2025. Because growth in resupply has been relatively flat over the past several quarters, from 169,000 patients at the end of fiscal year 2023 to 174,000 patients now, the company is working to increase new setups, says Crawford. 

“We’re trying to exceed 80% plus on our catchment rate for new setups so that’s going to drive more patients in there,” he said. “Also, we’re doing some transitions (with our sleep compliance) and we’ve already seen a couple of percentage points in that of increasing compliance, which ultimately (leads to more patients in the resupply program).” 

Within respiratory care, which comprises 77% of Quipt’s product mix, the company is looking at sleep, in particular, for “significant untapped opportunities,” Crawford says. 

“We believe GLP-1 medications will serve the long-term tailwind for our sleep business introducing more motivated patients into the health care system as they focus on improving their overall health,” he said. “Additionally, the regulatory environment remains stable.”