Global Home Medical Equipment Market Size Is Estimated To Reach $56 Billion By 2027
November 09, 2021 at 09:00 AM EST
Palm Beach, FL – November 9, 2021 – FinancialNewsMedia.com News Commentary – Over the last few years, and with the ‘help’ of the pandemic, home health care medical equipment industry has surged. Home medical equipment are medical devices that offer safe, convenient, cost-effective, and suitable environment to patients within their home. The home medical equipment market has transformed within recent years, owing to increase in prevalence of various chronic diseases across the globe. Further, oxygen-related products in home medical equipment are gaining high adoption, due to significant increase in incidence of chronic obstructive pulmonary disease (COPD) worldwide. Numerous devices are used for patient care at home, for example, infusion pumps, wheel chair, apnea monitors, glucose meters, and cannula. For instance, glucose meters or glucometers are routinely used at home to assess the level of glucose in blood for diabetics. Further, new technologies such as needle-free diabetic care, medication administration equipment, and durable medical equipment, such as medical beds and lift chairs, propel the home medical equipment market growth. However, high cost associated with these devices is anticipated to hamper the growth of home medical equipment market. A report from Allied Market Research said that the global home medical equipment market size, which was valued at $30,545.34 million in 2019, is estimated to reach $56,457.87 million by 2027, registering a CAGR of 6.1% from 2020 to 2027. It added that the therapeutic segment accounted for majority of home medical equipment market share in 2019 and is anticipated to continue its dominance throughout the forecast period. This is attributed to increased usage of therapeutic products for home care such as home respiratory therapy products and ventilators. Active healthcare companies in the markets this week include Quipt Home Medical Corp. (NASDAQ: QIPT) (TSX-V: QIPT), AdaptHealth Corp. (NASDAQ: AHCO), ResMed Inc. (NYSE: RMD), Amedisys, Inc. (NASDAQ: AMED), Apria, Inc. (NASDAQ: APR).
The report continued: “The growth of the global home medical equipment market is driven by the increase in incidence of chronic diseases and considerable rise in geriatric population across the globe. Furthermore, technological advancements in home care medical equipment such as smaller size, portability and ease to access contributes to the market growth. However, surge in concerns related to patient safety and difficulty in adapting to medical devices restrain the growth. The growth potential in the emerging economies of Asia-Pacific is expected to provide numerous opportunities for market expansion during the forecast period. North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the largest market share in the home medical equipment market in (recent years) and is expected to retain its dominance throughout the forecast period(2027). This is attributed to the surge in chronic diseases such as asthma, diabetes, high blood pressure, and others in this region. However, Asia-Pacific is anticipated to grow at the fastest rate during the forecast period owing to surge in disposable income, rise in awareness among people toward benefits of homecare medical devices.”
Quipt Home Medical Corp. (NASDAQ: QIPT) (TSX-V: QIPT) BREAKING NEWS: QUIPT CONTINUES NATIONAL EXPANSION WITH CLOSING OF STRATEGIC ACQUISITION IN CENTRAL ILLINOIS AND ONGOING BUSINESS MOMENTUM AS RESPIRATORY EQUIPMENT DEMAND REMAINS ELEVATED INTO FISCAL Q1 2022 – Quipt Home Medical Corp. (“Quipt” or the “Company”), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is pleased to announce that it has recently acquired a business with operations in Illinois, reporting unaudited trailing 12-month annual revenues of approximately $2.5 million. Post integration, Quipt expects an Adjusted EBITDA (defined below) for the acquisition target of $0.6 million. As a reminder all figures stated are in USD.
Acquisition Details – The acquisition adds a strategic location servicing Central Illinois, a heavily weighted respiratory product mix, and over 3,700 active patients. Moreover, the acquisition provides Quipt important insurance contracts and decades of operating experience, with an over 40-year operating track record in the markets served. The business has a diverse payor mix and full suite of products with a focus on respiratory care, representing over 85% of the mix.
The acquisition further expands Quipt’s operations in Illinois after the Company entered the market in August of 2020 and provides Quipt a coverage sphere between the major markets of St. Louis, Missouri and Chicago, Illinois. With the recent acquisitions, the expansionary operating footprint aligns closely with regions that have a high prevalence of COPD, a key target patient group; this includes Arkansas, Mississippi, Missouri, and Illinois, which are among the highest prevalence U.S. States. According to the NIH, about 570,000 people in Illinois have COPD.
The management team in place at the acquisition target has historically focused on a robust service intensive model, centered around patient education and compliance which is highly compatible with Quipt’s operating premise. This acquisition provides immediate cross selling and patient growth opportunities and adds patients to Quipt’s existing subscription-based resupply program.
Under the terms of the definitive purchase agreement, Quipt acquired the DME operation of the business for approximately $1.7 million in cash, and the real estate for $0.5 million. It is expected that post integration the acquisition will increase Quipt’s annual revenues by approximately $2.5 million and Adjusted EBITDA by $0.6 million.
Management Commentary – “Our robust operating engine and proven ability to integrate acquired assets allows us to continue the strong pace of closing strategic acquisitions. Since July we have now completed 6 acquisitions with combined revenues of over $16 million. Combining these newly acquired entities provides us a pathway to scale into new states with each business having a proven track record in the markets they serve and diversified product mixes. In this short period of time, we have amassed infrastructure in 4 new states and further penetrated existing states such as Illinois,” said Greg Crawford, Chairman and CEO of Quipt. “Given the favorable regulatory environment, we have been able to accelerate our expansion efforts by economically acquiring smaller respiratory focused home medical providers throughout the United States that fit our stringent acquisition criteria. This newest transaction in Illinois is another example of our strategy to make tuck-in acquisitions to fill in attractive geographies, obtain important insurance contracts, add to our active patient base, and build out our referring physician network. Our current pipeline consists of companies reflective of all three tiers of our previously disclosed acquisition strategy and we are extremely optimistic we will maintain momentum in closing targets that fit the mold.” CONTINUED… Read this and more news for the Quipt Home Medical Corp. at: https://quipthomemedical.com/press-releases/
Other recent developments in the healthcare markets include:
AdaptHealth Corp. (NASDAQ: AHCO), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, recently announced financial results for the third quarter ended September 30, 2021.
Steve Griggs, Chief Executive Officer, commented, “We are very pleased with our operating and financial performance for the quarter, which reflected the outstanding efforts of our team members. We continue to drive organic growth in the face of challenging external circumstances (including the ongoing impact of the Philips recall), as well as further expanding our presence through strategic acquisitions in key markets. During the third quarter, we completed six acquisitions and today we are announcing another four deals in the HME and diabetes product lines.”
Apria, Inc. (NASDAQ: APR), a leading provider of integrated home healthcare equipment and related services in the United States, recently announced financial results for the third quarter ended September 30, 2021.
“We delivered solid third quarter 2021 financial results that were reflective of our continued execution and operational improvements building on momentum from the first half of the year, despite external headwinds. Third quarter revenue was in-line with our guidance while Adjusted EBITDA and Adjusted EBITDA less Patient Equipment Capex were at the high end or better than our forecast,” said Dan Starck, CEO of Apria. “We continue to see strong new patient volume for oxygen driven by the Delta variant which we expect to remain at elevated levels compared to historical run rates. We also continue to see elevated new patients seeking OSA treatment, and I am proud of the entire Apria team for their perseverance and commitment of effectively working with patients as we manage through the equipment shortages driven by the disruption created by the Philips recall and other supply chain challenges.”
Amedisys, Inc. (NASDAQ: AMED), a leading provider of quality home health, hospice and personal care, has recently closed on its acquisition of regulatory assets that allow the Company to establish home health care centers to fully service and expand the Charlotte and Raleigh, N.C. markets.
Under the terms of the agreement, Amedisys acquires the right to expand certified home health care services in Mecklenburg County and Wake County, N.C., and surrounding counties, including Union, Wayne, Wilson, Stanley, and Anson counties. Amedisys will open two start-up care centers to serve patients in the Charlotte and Raleigh markets, which provide access to more than 350,000 Medicare enrollees and more than 100,000 Medicare Advantage enrollees.
ResMed Inc. (NYSE: RMD), a world-leading digital health company, recently announced results for its quarter ended September 30, 2021.
First Quarter 2022 Highlights Were: Revenue increased by 20% to $904.0 million; up 19% on a constant currency basis; Gross margin of 56.0%; non-GAAP gross margin contracted 270 bps to 57.2%; Income from operations increased 21%; non-GAAP operating profit up 18%; and Diluted earnings per share of $1.39; non-GAAP diluted earnings per share of $1.51.
“Our first-quarter results demonstrate strong performance across our business with double-digit growth in both top-line and bottom-line metrics, driven by ongoing high demand for our sleep and respiratory care products, and steady growth across our software-as-a-service business,” said Mick Farrell, ResMed CEO. “It is through the extraordinary efforts of our global ResMed team that we were able to deliver products and solutions to our customers amid unprecedented supply chain challenges that continue to restrict access to critical electronic components. As we navigate supply limitations and are forced to allocate products, we continue to ensure priority for highest-acuity and highest-need patients first, as well as working with physicians, providers, and community systems to maintain a sustainable flow of medical devices and digital health solutions to patients who need care.”
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