US-based home medical equipment company Quipt Home Medical has acquired a durable medical equipment (DME) provider owned by Ballad Health, which generates $6.6m in revenue.
The acquisition, announced on 31 December 2023, represents a strategic expansion for Quipt, enhancing its partnerships with healthcare systems.
The acquisition involves a preferred provider agreement with Ballad Health, covering 20 hospitals across four states.
The acquired medical equipment company, serving over 12,500 patients annually, operates four branches in East Tennessee and Southwest Virginia.
Quipt acquired the DME company for $1.6m, plus accounts receivable and inventory.
The acquisition, which aligns with its conservative financial strategy, is expected to strengthen Quipt’s respiratory care offerings and diversify its payer mix.
Quipt CEO and chairman Greg Crawford said: “I anticipate that this transaction will help establish a scalable playbook that we can deploy across the country, partnering with leading health systems to integrate care, reduce readmissions, and support patients in the home setting.
“As we layer in our proven operating model, we see this unlocking meaningful organic growth across the region and providing a national roadmap for future expansion.
“We view this as a template for future strategic growth, uniting Quipt’s operational excellence and patient-first approach with health systems’ market expertise and patient relationships.
“We are steadfast in executing our long-term growth strategy, re-igniting organic growth, and this healthcare-based DME acquisition and Preferred Provider Agreement is a prime example of our resolute focus on increasing long-term shareholder value.”
The preferred provider agreement with Ballad Health aims to streamline post-acute care coordination, embedding Quipt further into the healthcare delivery model.
It provides Quipt with immediate referral access from 20 hospitals, facilitating smoother patient discharges and reducing readmissions.
The acquisition establishes a scalable partnership model for Quipt’s future transactions and is set to optimise its presence in the home medical equipment sector.
It is expected to enhance the company’s ability to accelerate organic growth through improved referral channels and increased geographic density.
Quipt chief financial officer Hardik Mehta said: “This transaction was completed using cash on hand at a very prudent purchase price. Post this transaction, we continue to maintain a very conservative balance sheet, allowing for financial flexibility on a go forward basis.
“The acquisition and Preferred Provider Agreement accelerates our penetration into underserved rural markets and builds on the Company’s strategy of scaling through health system-aligned M&A.
“Moreover, we are actively in discussions with other healthcare systems with the goal of becoming the partner of choice in home-based care transformation.”
