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AdaptHealth Corp. (AHCO) is a leading provider of healthcare-at-home solutions, offering a wide range of medical equipment, supplies, and related services to patients across the United States. The company specializes in supporting individuals with chronic conditions and complex medical needs, delivering products directly to patients' homes through an extensive network of locations. AdaptHealth's offerings include sleep therapy devices, diabetes management supplies, home medical equipment, and other essential healthcare products.
- Sleep - Provides equipment, supplies, and services for individuals with obstructive sleep apnea, including CPAP and biPAP devices.
- Respiratory - Offers oxygen therapy and related services for patients requiring chronic respiratory support.
- Diabetes - Supplies medical devices and consumables such as continuous glucose monitors (CGMs) and insulin pumps for diabetes management.
- Other - Includes a variety of healthcare products such as wound care, urological, incontinence, ostomy, and nutritional supplies.
- HME (Home Medical Equipment) - Provides essential equipment like wheelchairs, hospital beds, and oxygen concentrators for patients transitioning from acute care facilities.
- Supplies to the Home - Delivers consumable medical supplies directly to patients' homes, ensuring convenience and continuity of care.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Richard Barasch ExecutiveBoard | Chairman of the Board | Executive Chairman of The Oncology Institute; Board of Advisors at Columbia University; Lecturer at Columbia University Law School | Richard Barasch has been Chairman of AHCO since its inception and served as Interim CEO from June 30, 2023, to May 20, 2024. He has extensive experience in healthcare services and leadership. | |
Albert Prast Executive | Chief Technology Officer | Board Member at DataLink Software, ClinOne, RxREvu, ClearSense, Rancho Family Medical Group | Albert Prast joined AHCO as CTO in February 2021, focusing on implementing technology solutions to enhance efficiency. He is also an active investor and advisor in healthcare technology. | |
Christine Archbold Executive | Chief Accounting Officer | None | Christine Archbold became CAO on March 10, 2023, after serving as SVP of Corporate Accounting. She previously held senior financial roles at Clarivate and Houghton International and worked as an auditor at Ernst & Young. | |
Jason Clemens Executive | Chief Financial Officer | None | Jason Clemens joined AHCO as CFO in 2020. He previously held senior financial roles at MEDNAX and has extensive experience in operations management and finance. He is a CFA and Six Sigma Blackbelt. | |
Scott Barnhart Executive | Chief Operating Officer | Board Member of Common Threads | Scott Barnhart became COO on September 23, 2024. He has over 30 years of leadership experience in global operations, previously holding senior roles at Qurate Retail Group, Cardinal Health, and Aramark. | |
Suzanne Foster Executive | Chief Executive Officer | Board Member at Unitil Corp.; Board Member of private medical technology companies | Suzanne Foster became CEO of AHCO on May 20, 2024, focusing on growth opportunities and operational excellence. She has over 25 years of healthcare experience and previously held leadership roles at Danaher, Cardinal Health, and Medtronic. | View Report → |
Brad Coppens Board | Director | Senior Managing Director at InTandem Capital Partners; Board Member at BeBright, HouseWorks, Vivo Infusion, Providence Care; Board Member of The TEAK Fellowship | Brad Coppens has been a Director at AHCO since July 2020. He has extensive private equity experience in healthcare services and serves on multiple boards. | |
Dale Wolf Board | Chair of the Board | Chairman of the Board at EHealth, Inc. and Molina Healthcare, Inc. | Dale Wolf became Chair of the Board on July 1, 2024, succeeding Richard Barasch. He has been a board member since November 2019 and has extensive experience in healthcare leadership. | |
Diana Nole Board | Director | None | Diana Nole joined AHCO's Board on October 16, 2024. She previously served as EVP and GM of the Healthcare Division at Nuance Communications and CEO of the Healthcare Division at Wolters Kluwer. | |
Dr. Susan Weaver Board | Director | None | Dr. Susan Weaver has been a Director at AHCO since February 2018. She previously served as CEO of KEPRO and held leadership roles at Blue Cross Blue Shield of North Carolina and WakeMed Health & Hospitals. | |
Gregory Belinfanti Board | Director | Senior Managing Director at One Equity Partners; Board Member at InfuCareRx, Montgomery Transportation, Ernest Health, AMT | Gregory Belinfanti has been a Director at AHCO since September 2021. He has led numerous healthcare transactions and serves on multiple boards. |
- Given the significant operational issues in your diabetes segment that led to a revenue decline of 11.8%, can you elaborate on why these problems weren't identified earlier and what specific steps are being taken to prevent such issues in the future?
- With the reimbursement shifts favoring the pharmacy channel over DME for CGM products, how confident are you that your internal operational improvements will offset these external pressures and return the diabetes segment to growth?
- You've set a new multiyear net leverage target of 2.5x; considering the downward guidance in revenue and EBITDA due to diabetes challenges, how do you plan to achieve this deleveraging while also investing in growth initiatives?
- Regarding the potential divestiture of non-core assets representing less than $100 million in annual revenue, what criteria are you using to determine which assets to sell, and how will these sales impact your overall strategic focus and financial performance?
- With the increasing use of GLP-1 drugs potentially reducing the incidence of sleep apnea, how are you assessing and preparing for any long-term impacts this might have on your sleep segment, which currently is a significant part of your revenue?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
A large national provider in the home respiratory/home medical equipment market, competing with AdaptHealth in a fragmented and highly competitive industry. | |
Lincare Holdings Inc. | A major competitor in the home respiratory/home medical equipment market, part of the fragmented and competitive landscape AdaptHealth operates in. |
Rotech Healthcare, Inc. | One of the largest national competitors in the home respiratory/home medical equipment market, competing with AdaptHealth. |
A significant national competitor in the home respiratory/home medical equipment market, part of the competitive environment AdaptHealth faces. | |
DASCO Home Medical Equipment | A regional provider competing with AdaptHealth in the fragmented home medical equipment market. |
Binson’s Medical Equipment, Inc. | A regional competitor in the home medical equipment market, part of the fragmented industry AdaptHealth operates in. |
Norco, Inc. | A regional provider competing with AdaptHealth in the home medical equipment market. |
Protech Home Medical Corp. | A regional competitor in the home medical equipment market, contributing to the fragmented competitive landscape. |
Quipt Home Medical | A regional provider competing with AdaptHealth in the fragmented home medical equipment market. |
Breg, Inc. | A product-specific provider in the home medical equipment market, competing with AdaptHealth. |
A product-specific competitor in the home medical equipment market, part of the fragmented industry AdaptHealth operates in. | |
Acelity L.P. | A product-specific provider competing with AdaptHealth in the home medical equipment market. |
CCS Medical | A product-specific competitor in the home medical equipment market, contributing to the competitive environment. |
Advanced Diabetes Supply | A product-specific provider in the home medical equipment market, competing with AdaptHealth. |
A non-HME provider that could enter the home medical equipment market and compete with AdaptHealth. | |
A large technology company that has disrupted other supply businesses and could enter the home medical equipment market, posing a competitive threat to AdaptHealth. | |
A large technology company that has entered the healthcare market and could compete with AdaptHealth in the home medical equipment space. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Provider of home medical equipment (100% equity interest acquired in Q1 2023) | 2023 | Total consideration was $0.5 million (cash of $0.4 million and deferred payment of $0.1 million); the deal involved allocations to inventory, equipment, and goodwill, which is linked to expected growth and cost synergies but is not expected to be tax deductible. |
Three providers of HME and assets from two additional HME providers | 2023 | The acquisition was valued at $18.223 million (primarily via an $18.173 million cash payment, with a small deferred component) and included detailed allocations such as equipment, operating lease assets, and significant tax-deductible goodwill to bolster market share and operational synergies. |
Provider of home medical equipment (100% equity interest acquired in Q1 2022) | 2022 | The deal was structured with a total consideration of $2.775 million (comprising cash and deferred payments) with allocations that included inventory, equipment, intangible assets, and goodwill aimed at strengthening market share, with the goodwill not expected to be deductible for tax purposes. |
Certain assets of the home medical equipment business of another provider | 2022 | Acquired for a total of $2.775 million, this transaction allocated amounts to cash, accounts receivable, inventory, equipment, and goodwill (non-deductible for tax), reflecting a strategy to capture cost synergies and drive growth. |
Two providers of home medical equipment | 2022 | The combined deal was valued at $16.799 million (with $16.377 million in cash and $0.422 million deferred), with asset allocations that include significant goodwill ($4,591 thousand) attributed to expected growth and market expansion, although the goodwill is not tax deductible. |
Certain assets of the home medical equipment businesses of four HME providers | 2022 | The acquisition’s total consideration was also $16.799 million, with similar allocations to cash, receivables, inventory, equipment, and goodwill (non-deductible for tax) and is subject to further valuation adjustments, supporting the strategy to expand market share. |
Community Surgical Supply integration | 2022 | Originally acquired on December 30, 2021 (with integration well underway in Q1 2022), this strategic acquisition involved a cash payment of $129.4 million (plus up to $6.5 million contingent) and added approximately $100 million in revenue, enhancing clinical respiratory capabilities and operational synergies in key markets such as New York and New Jersey. |
Recent press releases and 8-K filings for AHCO.
- AdaptHealth Corp has reorganized its business into three core segments—Sleep Health (approximately 40% of revenue), Respiratory Health (about 20%), and Diabetes Health (around 20%)—with an additional Wellness at Home category that supports ancillary revenue.
- The CFO detailed plans for flat margins in 2025 by targeting a modest 1% revenue growth and making significant investments in new leadership and technology, including artificial intelligence initiatives to streamline document processing.
- In the Diabetes segment, operational improvements such as enhanced patient retention and the restructuring of resupply operations have led to better performance in new patient starts, indicating steps toward returning to organic growth.
- The discussion also covered tracking GLP-1 medication usage to improve CPAP adherence in the Sleep segment, and noted limited tariff exposure on its $1.3 billion spend, with potential impacts estimated at around $10 million.