U.S. Home Medical Equipment Market Expected to Reach $20 Billion By 2027
July 14, 2021 at 08:45 AM EDT
Palm Beach, FL – July 14, 2021 – The home medical equipment market has transformed within recent years, owing to increase in prevalence of various chronic diseases across the globe. Home medical equipment are medical devices that offer safe, convenient, cost-effective, and suitable environment to patients within their home. 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, wheelchair, 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. Active healthcare companies in the markets this week include Quipt Home Medical Corp. (NASDAQ: QIPT) (TSX-V: QIPT), AdaptHealth Corp. (NASDAQ: AHCO), Viemed Healthcare, Inc. (NASDAQ: VMD) (TSX: VMD), Amedisys, Inc. (NASDAQ: AMED), Apria, Inc. (NASDAQ: APR).
Actually, both the U.S. and global markets are projected to increase over the next several years. Reports from Allied Market Research say that the U.S. Home Medical Equipment Market to Reach $20.41 Billion by 2027 at a 5.6% CAGR and that the global home medical equipment market size 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. Allied Market said that: “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.”
Quipt Home Medical Corp. (NASDAQ: QIPT) (TSX-V: QIPT) BREAKING NEWS: Longeveron Announces Abstract Conference – Quipt Home Medical Corp. (NASDAQ: QIPT) (TSX-V: QIPT) (“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 three separate entities with combined operations in California, Missouri, Arkansas and Mississippi, reporting combined unaudited trailing 12-month annual revenues of approximately $5.5 million, and Adjusted EBITDA (defined below) of $550,000 prior to integration. As a reminder all figures stated are in USD.
Quipt is undertaking an ongoing national expansion effort with the goal of economically growing its operating footprint to serve as a leader in respiratory homecare across the United States. Quipt has built out a significant infrastructure platform which is highly scalable and allows the opportunity for the Company to efficiently integrate acquired businesses resulting in meaningful cost synergies and revenue growth opportunities.
Quipt’s acquisition approach generally targets companies that are either: (i) heavily respiratory weighted companies with gross revenue in the range of $5 to $20 million, and consistent annual EBITDA margins between 10% and 20% or more; (ii) sub $5 million revenue targets with the strategic goal of expanding our payer mix and expanding our geographical footprint across new states to be become a national DME provider; or (iii) targeting substantially larger opportunities that would be more meaningful in terms of revenue, EBITDA, active patient base and geographical operating footprint.
Acquisition Details – Quip will operate each of the newly acquired entities under the Quipt brand name post-integration. This marks the start of a longer-term plan to transition certain local market brands to Quipt, as it strengthens its brand equity and recognition. Quipt believes this will be a driver of future organic growth.
Combining these newly acquired entities provides Quipt a pathway to grow into four new states (California, Missouri, Arkansas, and Mississippi). The combined entities will add six locations, over 10,000 active patients, important insurance contracts and decades of operating experience. Each business has a proven track record in the markets they serve and has diversified product mixes, which combined is comprised of 66% respiratory and 33% traditional DME. Quipt has immediate access to attractive new markets in which it intends to leverage its existing infrastructure to create significant cross selling and patient growth opportunities. In addition, the combined entities give Quipt the opportunity to add patients to Quipt’s existing subscription-based resupply program, and Quipt expects to derive strong revenue synergies from this initiative. The combined entities have a diverse payor mix with no more than 10% in sales coming from any one particular payor source. CONTINUED… Read this and more news for the Quipt Home Medical Corp. at: https://www.protechhomemedical.com/news
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 that it will release its financial results for the second quarter ended June 30, 2021 before the opening of the financial markets on Thursday, August 5, 2021. Management will host a conference call that morning at 8:30 am ET to discuss the results and business activities. Following the live call, a replay will be available for six months on the Company’s website under “Investor Relations.”
Viemed Healthcare, Inc. (NASDAQ: VMD) (TSX: VMD), a home medical equipment supplier that provides post-acute respiratory care services in the United States, recently announced that it has reported its financial results for the three months ended March 31, 2021.
Operational highlights (all dollar amounts are USD) Were: Net revenues attributable to the Company’s core business for the quarter ended March 31, 2021 were $25.5 million, an increase of $2.7 million or 12% over net core revenues reported for the comparable quarter ended March 31, 2020. Total net revenues for the current quarter were $28.4 million which included approximately $2.9 million for contact tracing services and product sales related to the COVID-19 pandemic; Net income for the quarter ended March 31, 2021 totaled approximately $1.7 million, compared to $4.2 million for the quarter ended March 31, 2020. The 2020 quarter included $1.0 million of revenue and $2.5 million of proceeds on used equipment sales related to COVID-19 response sales and services; Adjusted EBITDA for the quarter ended March 31, 2021 totaled approximately $5.5 million, a 31% decrease as compared to the quarter ended March 31, 2020. A reconciliation of reported non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures can be found in the tables accompanying this press release.
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 conduct home health care operations in Westchester County, NY.
Under the terms of the agreement, Amedisys acquires the right to operate certified home health care services in Westchester County, NY, and the New York Borough of the Bronx. Amedisys will open a start-up care center to serve patients in the newly acquired service area, which provides access to 375,000 Medicare enrollees and 165,000 Medicare Advantage enrollees.
Apria, Inc. (NASDAQ: APR), a leading provider of integrated home healthcare equipment and related services in the U.S., recently announced financial results for the first quarter ended March 31, 2021.
“We delivered strong first quarter 2021 results ahead of our expectations on all three of our key metrics and we built on momentum from 2020 establishing a solid foundation for future growth,” said Dan Starck, CEO of Apria. “The country experienced a significant surge in COVID cases coming out of the holiday season through mid-February, and the team at Apria as well as the industry played a critical role serving as the pressure relief valve for hospitals by getting people home to free up hospital capacity for the most severe cases. As the COVID spike from earlier this year has started to dissipate, we are optimistic about the steadily increasing volumes of people seeking non-COVID-related healthcare services.”
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