AHCO - Earnings call 3 2023 | AdaptHealth Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to today's AdaptHealth Third Quarter 2023 Earnings Release Call. [Operator Instructions] It is now my pleasure to turn today's call over to Richard Barasch, Chairman and Interim CEO. Please go ahead.

Richard Barasch

Good morning, everyone. Thank you for joining us today to discuss AdaptHealth's third quarter performance.

within like call everyone release Act. and may forward-looking I'd in statements issued begin, the constitute conference of this in statements we to Litigation that remind included today Private Before Securities meaning Reform the the press statements limited comments results are regarding not beyond. XXXX and but include financial These to for and Actual because which of annual number and uncertainties SEC of are the differ at quarterly risk from in projected those materially could a results in statements length discussed forward-looking filings. factors company's AdaptHealth Corp. have no update to events. obligation this call the on should information to subsequent provided reflect such

Additionally, company and measures, free this are reference EBITDA such all flow, certain measures. of which on financial call, the cash non-GAAP adjusted as EBITDA, financial will

replay later be of the call morning's This call today. a available is being and will recorded,

the by quarter. $XX.X We growth X.X% of revenues flow flow operations we last third of results $XX.X business, million. from sleep are we for the pleased important, record our cash to generated and quarter. free with cash the year, leading over generated Equally million Powered of

for result this cash fell expectations this will a our expectations than AdaptHealth of into Jason that I contract flow detail time. we for sales have these in but profitable get nor for met short our this delays Other results does be EBITDA, of why enthusiasm quarter. this a adjusted enterprise it diminish margins unplanned Humana happened, largely the on more of our would revenue, contract, our and and will the as not do contract. reduce more EBITDA the in Adjusted implementation of optimism

outperform, over to continues resulting in line year. increase product a last sleep XX% Our

past volumes. our our and expectations now the over with consistent XX% million record business were has X.X totals is that resupply starts PAP metric important generated our over PAP grown patients. and year An resupply census new Our order

relationship grow and is with and provider that devices are the become patient continue we focused critical is a The more friction than a of reduces that to experience. enhances electronic just these aspect ordering, patients strategy Among which the we we've supplies. reasons to our on of established

trends This patient of the respiratory year-on-year. the driven first Building year, growth by on X% net the patients we coupled vents. our was length by revenue with over stabilization remain increased the strong oxygen grew time census, of on in and half in

continues to quarter. discussed as work a progress, in Diabetes be last

in to are encouraged While third are we quarter softer a we progress vital by the the were improve bit making than had planned, the line. this results product we

are diabetes growing focusing in efforts large the government of The pumps and areas the growing, is for government shift versus CGMs especially census, are To continuing points sales specifically and resume our CGM payers toward retention quarter. and last we are and business, where growth, is we of prevalent. Government-sponsored our focus acquisition patients. our basis these now strategy to XX% XXX up to market on

rapidly team. entire in leveraging diabetes and are prevalence, areas diabetes the high of We of capability dedicated scale the AdaptHealth recruiting the sales representatives

months. to diabetes is over of objective the next several Our reps double sales number the

to to to move strategies commercial profitably allow pharmacy channel. will of growing This regain the in pharmacy participate us channel. more payers that exploring also share the We're as relinquished the we some sales

while beginning that providers for create to to the strategy important better is their our CGMs information constituents. promising, and This Finally, a payers. our enhance proposition will to quite is are generating all data use from and we experience generated execute to of that value a patient

transaction. We've implementation established diminished Humana their to has the the we've will seamless for members HME ultimately Humana benefit better and to who of working days not been that parties transition Humana, from to as optimism make all with the early the service about our for process contract will in as value needs. relationship a this strong experience Our very provide possible the

however, Unfortunately Nevertheless, for we from in is than will achieve anticipated, transition patient AdaptHealth. positive taking size that confident a Onboarding resulted results members the we the remain agreement and longer revenues of expected had Humana. CAP process. this complexity reduction we underestimated to our

increased AdaptHealth strengthened Since public and balance EBITDA cash revenue our recently sheet. and went have adjusted year flow in XXXX, we've improved and each our

CEO we for reduction CEO the the top job take for confidence, possible. candidate our as soon best responsibility fill However, self-inflicted, as a Board The investor setbacks that caused is must search. priority around issues, have some of to in including the with

the and filled talking We initiatives post we're our currently like capable of goals are down, year-end. and not describe highly In meantime, slowing management on. to key that to with Board by I'd candidates having aligned the are and the goal the

flow cash all operations to of is results. which cash inventory in have continues The priority. better a free spending, collections, more high increases flow better to Further and from on focus and efficient management our flow improved company cash capital contributed

free to our stock, back but addressing cash we sheet. our also were We balance recently of buy used some

revolver paid During XXXX, X.XXx. we and our our leverage X.XX from reduced to down

are goal We intend leverage maturities, debt reducing in to fortunate of we rates terms and of our delever under Xx year. to comfortable of have the to further structure end by but a next with the

expedite our diabetes growth, sales and our rate the business implement Humana As market health business transaction to our to reduce are and of ecosystem. of enterprise through care better the even the itself, strategy our to become more resume to short-term in priorities Continue the the processes automation and of cost expand operations line effort. relevant and solidify a

important, seeing line. product to I'd affected impact sleep lines. current are and on our sleep on Finally, our comment like GLP-Xs the no Most in product diabetes we

well ongoing pack overstated recent grow have continued at resupply affected census, is and pace may market the analysis for a that of growth. new a combination and have patients starts Our Further, in bodes path continues some analysis total resulting that we GLP-Xs revenue indicates utilization which to on been that earlier sleep seen reaction.

their and X% were that PAP of only indicated obstructive therapy. GLP-X study using recent users to one sleep apnea stop with example, For able

of a awareness more the piece therapy result GLP around ourselves and lack actually the of sleep increased time. highlighted adherence diagnosis think of a to included, the Others, that result of over grow OSA publicity GLP-Xs. recent as TAM may Another as

working sleep the GLP-X retention. leakage TAM, will years impact have subject of some past pressure. speculation, We've Our If can in we GLP-X will sleep our though and the which time, respond but few on automation decrease areas. the on in current is to by and it patient proactively improved accelerate significant drugs increase this may are market a and obesity over measures cause continuing likely there through overcome to on a reduction conversation TAM. focus net the assumption better is that these soon basic over How potential each how large much processes costs to share, we efforts and of these will

believe is will usage There usage. engaged be CGS. GLP and in more We -- levels AXC that more growth monitor consensus GLP-X may the diabetes on accelerate accelerate health actively GLP-Xs CGM usage inclined are patients to through that growth and their in

that also insurance the We of strong government increased a believe coverage sector, tailwind. CGM, in is especially

adherence position, with respiratory and of regular over with a coaching an with their these chronic XXX,XXX folks like with basis conditions. and is We health efforts a apnea usage. and million connecting with have improve unique We providers, sleep on diabetes, interact ongoing apnea, conditions therapies currently obesity, the to the roughly to We AdaptHealth COPD. equipment them patients needed payers. sleep relationship with of X.X chronic help XXX,XXX diabetics by people and as resupplying occupy them people to people at to and supplying epicenter better

just are of improve use adherence do those our outcomes where patients, health beginning how the comorbidities. Better understand can and more to are will especially alone downstream we with we improve we generating now to costs, to data the reduce compliantly even

the -- rate we One who XX,XXX and up early month. people on way, these, of last who that was recently XX%. set Of by the those X% example PAPs over is surveyed response responded

monitor and results. in service with CGMs So diabetics we comorbidities. using coexist to a If group the find GLP-Xs, coexist extrapolate of will identify indicates GLP-X are think usage will Of has X% opportunities we therapy. reasonably population, better we Further, only many this diabetes, XX% can taking patients and entire CPAP this findings that with good but these which to are these, sample. of many is XX% to our their

Jason Clemens

Richard, and all to for call Thank joining thanks you, our today.

revenue Let described, top than Other million, me record begin increase exceeded and achieved X.X% third of growth line met of expectations XXXX. by Richard for the over expectations. our results. quarter flow $XXX.X We and cash adjusted details reviewing our our that this quarter of an quarter the third EBITDA, Humana

PAP sleep driven $XXX.X total equipment Our of ago, year XX% increased setups against a million by and increasing resupply. revenue

expectations PAP in were quarter. equipment starts Our our the with new third consistent

totals million now resupply our broke business record and utilization over volumes, records. company achieved census ordering our PAP resupply order patients Our electronic X.X

increased million over Respiratory $XXX.X of revenue XXXX. the quarter X% third of

As CGM we was year-over-year, our up resulting in continue to flat CGM census revenue. category, product revamp diabetes X.X%

expected, As volumes year-over-year revenue pump tube-based from million under $X and pump was as remain pump our pumps. down tubeless supply pressure

quarter. We continue fourth into expect the to this pressure

our the government As focusing in said, bolstering sector. we are growth Richard and force sales on

Outsized largely expenses. increase diabetes in modest and product sleep a operating a growth category in our offset in shortfall

resulting Humana reason for transitions from was in expectations Humana in were delay patient for and contract in losses $XX for overall, results expectations. top line quarter. shortfall in The our with our unexpected the corresponding the bottom a miss So line deductions, bottom capitation primary start-up, line the against the top our and except the and million line a

transitioned to longer that than get substantially we transition year. to we by will It but patients, expected early next indeed will believe originally take all

we expect bottom lines. As both sequential our top we in improvement patients, transitioning continue and

Our $XXX.X adjusted resulting transition $XX.X of down flow margin the quarter in million. was CapEx the primarily resulting XX.X%, operations of in $XX.X the Cash to EBITDA from XX.X% flow $XX.X million X.X% patient million cash related in revenue, or quarter, third was quarter, second adjusted in an million. EBITDA free in backlog. of from was the

of X revenue. X% reiterate XXXX. flow full of first cash than cash free a XXXX, X.Xx million of which quarters quarters X X% $XX.X we year first more flow, was the between of of free We the our goal For generated and

down For and of the first days XX.X of XXXX, first over for XX.X X for the the days X quarters days, were a of of down XXXX. XX.X from DSOs against And third DSOs XXXX. XXXX, day were quarters quarter

we workflow. our have We technology in continue process investments made our and cycle and of benefits the of to realize revenue refining

Our net X.XXx, the from the ratio quarter leverage down the end second slightly quarter. at was of

payments quarter, million made third the for the During a cost $XX.X of the open we after market total the of end And X.X $XX principal of we approximately in repurchased million. quarter, million. shares

goodwill discussed pretax noncash This as in stock charge As results, was a to quarter as part by of $XXX this price our we recorded morning. September million triggered release our our third we XX. impairment of earnings

Turning to guidance.

follows. as outlook We are prior revising our

expected to our narrowing revenue range are billion to billion. We $X.XXX $X.XXX

We flow which XX% we for yield are $XXX revenue. our million to XX% expected EBITDA million. of adjusted $XXX total range of should our free CapEx revenue, cash expectations to updating maintaining to And to X% X% of are representing

believe the of To close we positioned our we're today, heading the final comments weeks into year. well

patients focused of diabetes, relationship optimistic are we We with business around we our on are new turning and transitioning overall. Humana, as are part about our

the for will we open that, With Operator? questions. call

Operator

Jefferies. [Operator with Tanquilut Instructions] We have our first question Brian from

Taji Phillips

You've got Brian. Taji for

So you your the Humana rate. going detail maybe that ramp, and at could the time I color around implementation maybe contract, that on to will accelerated as levers the appreciate drive an we really around But some profitability outline think line. the the about updated provide expectations back profitability

Richard Barasch

We're hedge Thank them is you going the to we question. consistent. that. talking the situation We're a once delayed. think where had contract more occurs, about of for more to we're transition the the profitability But

it. to beginning, happens, us our up going the resume efforts will take we but feel transition quarter. quarter, good this the we perhaps contract originally ramping to once planned had that are very as through It's We that next we likely

Jason Clemens

that that And a $XXX say, patient say let's at for patient unit this cap the stage oxygen the a schedules or patient, percent fee around from very on, an that rapidly. will Taji, ramp this is is economic Jason. a deduction is, I as month. for level a a forward, profitability allowables, would reason The

got So $XXX. a you quarter, full for

of thousands oxygen that thousands You and got still need to patients be allowable from competitors on transitioned. that

is bottom to as and -- So amount each one that drops line. and back it it for as CAP XXX% every revenue is comes our entire us, transitioned,

a from expect ramp on continue this forward we focused staying do we patients. transitioning as stage So good

Taji Phillips

detail the there. Appreciate

Just follow-up. another

margin As looking step-up I guidance, implies QX. midpoint, about a the think at your it in

Just are different and in to the going puts get help you curious, margin takes QX. that that accretion

Jason Clemens

Taji. sure, Yes,

our So demand, firstly, in we enjoy categories. do a historically step-up particularly patient in resupply

to hoping of January the in as that new into patients in and get stock they resets, occur end need deductible carry year. the changeovers through well to the plan the year insurance as them up front As are and that of resupply

So lines, from to be resupply we are $XX sequentially diabetes, million and in QX expecting, up specifically in our sleep over QX.

flow We down. expect it of purchase margin, that at about typical call XX% that, to our stepping

that's the step-up profitability sequential first So QX. in in

kind as patient-by-patient. of The second, we said, Humana,

we key transitioning and and step-up last As weeks in investments material in ensure do the are made a capability to CAP patients, several spoke line additional that that expect patient transition. we we've bottom about over resources as we just smooth payments

Operator

We Blackman next have Matthew with our question from Stifel.

Mathew Blackman

just I've maybe, start And got could X-parters. with you. if two Jason, I

delay? EBITDA? Just guide much How down Humana the frame curious same diabetes the then of impact revenues. to versus was on contract on it And the

specific franchises And ahead? any the second part specific And then is, question in wait of think for we impact impact the the XQ follow-up. I'll did And Humana disproportionately it does any the as first franchise? contract

Jason Clemens

Yes, sure, Matt.

part that is Diabetes, majority did a bit Humana-related. of first we fell question so bit we of third short the towards vast look little in QX of a the the quarter, expect that. So CGMs is out we as more

of of a you second effect of vast touch into fourth quarter. And But the the timing. the And Humana-related, can majority just certainly, you've got the rolling for QX. was that compounding the part rephrase this we're So the rolling into second your question? -- going again,

Mathew Blackman

revenue we about The disproportionately specific think Humana franchise? yes, -- does any it impact when the --

Christopher Joyce

second I power that in the from substantial know you will when the we going impacts second the quarter XX I franchise about won prior was we guarding states think I'd the District quarter Well, Columbia, the contract say it of and where go-forward. don't revenue that earned the the and that to say any contract, effect. into HMO terms earned Humana of there the within revenue

in in and And of the little a that and was revenue then respiratory rental so sleep specifically much lines, PAP bit HME.

of no revenue-wise. revenue And month so is eliminated, Humana. fee-for-service converts revenue into go it starting a It's to that right? per that XXX% July X, will a longer And patient

you've got focused patients generate until your and disconnect top And you're rental course, a that that left bottom PMPM, today. of patients timing with competitor does new line dropping bring the on Of it create convert but the this census, also that out to revenues. coming we're you into the on gap

Mathew Blackman

starts a that. franchises. in Can some on anything appreciate hearing are of And appreciate question, franchise? the you Got think you second patient what Is And the out? stands part pump more diabetes on it. historical I given attrition? just gave seeing on all one. color to But terms noise side with of just I relative there trends, zoom that new then the the we the little bit we're us CGM and attrition in I and specifically GLPs.

horsetrading a And play And to to ultimately through you the that specifically patient this that from then to through Just to the able extent what Are is farmer with versus anything the standpoint a is, bit for have long-winded little -- the second pharmacy that opportunity be and part to of and help does DME? does for push revenue question that aggressively worth what Apologies the into us the the you are. more channel? happen moving out, payers? question, channel thanks. parts but profitability pharmacy sort think less

Benjamin Hendrix

Richard. Okay. is This

any The any relative and is effect been issue channels attrition any any to seeing not in with we're have of the perception dealing attrition. than GLP-X off, more shift utilization. First in we diabetes that

add We and to we in for way believe utilization too, care that will channel. with payers, data generate of payers the pharmacy in to the in our us that the What manufacturers be strategy help key, that the will pharmacy but payers. about and will to both margins work this the the value improve is channel our

Jason Clemens

DME medical Certainly, see CGM the color. of benefit monitoring from is we've Richard bottom actively and remarks, we traditional that Yes, unit this covered Matt, I'd patients. In he the as economics patients produced or taken Richard's in But data channel. line financials top add pharmacy first on little about diabetes, lives of and value our typically prepared the than aggregating devices a in steps quarter within a less spoke said, a at patient tremendous

have with We with data, diabetes patients. certified deployed coaches engaging that

on overall Initially, and focused we really sensor utilization.

month, the not set a what month reasons you'd But on data to the communicated seeing we're last expect sensor first And the so the on are up that and manufacturer. was depending XX XX a a that patient to new CGM. applied in be days, later,

And patients, setup are be that so compliance. not might lot patients a and initial we're hand-in-hand we're in working on about learning that with those

to additionally channel this just of these along monitoring in with and that's that medical are information levels, to think produced compare from all-encompassing our CGMs. journey the to We monitoring strategy. be strategy capability We over pharmacy We the day resupply. a a day, there, equipment coaches with channel business from every have more benefit help sleep all produced So or needs already patients their that intend these XXX we AXc an do data to it's think levels, strategy. don't hypoglycemia rich diabetes devices level

Operator

Pito Deutsche comes [Operator next question Our with Instructions] Bank. from Chickering

Pito Chickering

I'm another just So Humana. I here. for being apologize dense on question Maybe

I capture to arrangement capitated back But and is to of So a mismodeled. apologize order the ahead sort PMPM, of you to for that's build that, time. and patients competitors where do in you

guess, to back why to be to if are that provider you if payments, X years, I'm how patients? So go want for I a get the X able Adapt. Can patients payments you would like without understand change? perspective, have saying within to it, CAP I you or Patient this just consent? recap they those shift

Jason Clemens

provider change. will want years, if Good you've a for you Well, been not number firstly, Pito. to of the DME question. Sure, absolutely

competitors out the not those these the stand right? these build are mechanism part They're XX to today in network, contract, of not District patients. authorized Columbia of as as we I they're the However, authorized. states in of here mean, for fee-for-service of

the more and complicated is than rental the lifting however, really patient we On shifting is. lines, a nuance -- is that's The -- it anticipated. where

we, or competitors thorough by expected that Now cases, more just documentation better there. in some isn't just either maintained

support to an testing the and that work the the provider Like will. with in patient so work us the and instance, to that patient's requires to down with therapy tracking you backwards, patient if referral. And oxygen the directly saturation

And layers what is happen of needs to of layers so example and getting order in without detail, patients. transition that an just into to those

have capability and we additional and But weeks, we in week-over-week resource invested are already transitions. seeing several our in in just last patient the ramp

Pito Chickering

to CGM Okay, fair of at going versus Medicare I and point? are And it's within diabetes, breakout this between the then percent so commercial multipart, in again. revenues What What's enough. diabetes be shifting sort the to sort of apologize segments? of pumps

this grow look what I business. if of growth growth did commercial I'm saw in CGM ] did And bridge [ to guys Medicare trying at the what book MCM quarter, you sort CGM, DexCom's this Medicare revenue of quarter? what U.S.

Jason Clemens

business Yes, the the Firstly, revenue That's and that about, the pump we and I'd about was by on it revenue and believe delineation pump med supplies is pump business. $XXX be pump this tech last say will just versus we've headwind that of between business. pump the million market. The and million on Sure, that's the $XXX rest tubeless We've created been Pito. based saying complicated talking of to $XX question. CGM million a about the CGM million year. $XX record compression our supplies year. been that of

government his XX% payers census. in that said made Richard remarks, prepared up of As now

X up from quarter. sequentially full second that's So another points the

resulted CGM that third the revenue. about and X.X% census in was mentioned flat in I up quarter

movement payers continued what reimbursement but less channel is so government a by there you're pressure the And and of created benefit versus commercial. medical traditional seeing

quarter, fewer enough offset will a as patients see that But we're for to volume of in care pressure. taking So commercial for taking to government our care was patients, reimbursement we exchange this of headwind. more continue

Pito Chickering

Okay.

much specifically at year-over-year? guess, grow CGM segment that -- Just did how grow I looking that Medicare.

Jason Clemens

commercial. single-digit revenue. get single the you It up offset to then was lower flat equation to and then you've about about by And got higher digits, rate

Pito Chickering

Okay.

again, commercial sort the share market on or you're second. within gaining Medicare is a market? a from CGM for So share, ignore Medicare, you only losing focusing of MA Do think

Jason Clemens

Sure.

We gaining certainly. are patients

tough not I gaining patients. to think gaining delineate we're or from . we share certainly, that. are it's But

for over where geographies. We selling about and selling really really are products. lot new last We want time data We're markets, the quarters CGM diabetes adding go very to X reps. sales aggressively other key in and just strong recruiting through thinking sales key CGM we of spend reps a the

to business expect we in the growth do resume fourth So government that quarter.

Operator

question next our Close Canaccord Richard have We from Genuity. with

Richard Close

system just couple the I'm all upgrades benefits from Jason, curious restructuring from the the and last years. reaped you've if of

If you give can there. update us an

Jason Clemens

the Richard. Sure, last you specifically, I year yes. tell would from that

the the During commitment cost-out and million in quarter, $XX commitment, for third met of XXXX year earnings $XX the million we have annualized.

put bow final we start will that. flowing. The So on that early September, program, a reductions dollars those in so and made were

more heavy of as a well absolutely integration last the been technology days leveraging ability there as the we And In result the believe that to work of we've made XXXX go. to as these focused will or it's management. for technology. the we've cost by year. terms -- on guide when of cost we that is XX expect in overarching you in said, commitment get XXXX, reference on a made out investments have throughout to We've We

Richard Close

go Okay. opportunities in more with sizing and on sales. That's respect just And strategy the you there? helpful. enterprise expanding maybe then that strategy Can the on detail to potentially

Richard Barasch

Adapt referral Yes, has sale been sure. in a from a a traditional a which fulfillment results in a provider of model This is sales by Richard. prescription generated an prescription. results individual The

transactions. individual of millions literally with dealing we're So

doing great And great are of just what in like to on these one with we've aggregates be Humana, patients together shape the enterprise to relationship our all by that the going reemphasize and place. got in that learnings issues issues. In which is want working way, Humana we with sale, are Humana, with

very clear. very, that made I So

in a to that with system important the fulfilled most payer respiratory, or like like providers. category, PAPs, individual -- relationship that importantly, are like a aggregate savings friction large the particular a a we all achieve reduce by a individual the having hospital CGMs, most of for by being set parameters can prescriptions of having not system, by But --

potential think for think every we're We market we the So a in a customer health that We is We're we in system frankly, this. every XXXX. that in is customer a very think this see even large. is good happy expect for payer short results to with. very a pipeline, quite And this. potential generating time, a lot of category

Operator

America. [Operator from Our comes question of next Joanna Gajuk Instructions] Bank with

Joanna Gajuk

I guess I if guess come a back may, to couple follow-ups, I different I guess diabetes.

this growth. And guess of expect you long-term slightly I lower you And down still year? for expressed quarter. in guess, a the Or we I ties And changes it than kind slight for previously, about for I it kind previously business of as I year, next X% talked to year, think it? expected down So then do quarter flat slightly that you Any there? the talked year-over-year outlook is should guess guess, diabetes the sounds previously, how more about for your growth. revenue? like about

Jason Clemens

quarter. for $X headwind the fourth $XX say, pump supply million the a on year-over-year we revenue. firstly, thanks This Jason. and expect I'd the question. is in Again, Joanna, about pump or million

we need we And OBXs that to share. about continuing supplies, think on moment. to pump insulate take CGM look back and pump product pump and towards I'll are is the indeed our I to I we manufacturers get on channel. pharmacy think in As a of distributor 'XX mean, a

pump intend will half. be we to but supplies do And Tandem to all continue grow over so headwind another Medtronic to year, continuing are that that. as the existing and it do products. 'XX, this that we So much with in come to was pump as upgrades mix, 'XX to perhaps think and in market not

still expectation. that's our So

In Again, as up short investment year-to-date, we're our flat CGMs, in X effect the same, about terms Salesforce to X% point of maybe to that's of expect grew we get the in yielding But planning QX, -- about where we X 'XX. be. expectation We results of QX. want start big were of we do or the we in year-over-year. into

us on And with to little think do that's able CGM we're I XXXX. we it's for be. do the But for data share early it's large will think to comment growth CGM to safe return making, of that we investment to we're today. I say think a growth anticipate specifics the what in a

Joanna Gajuk

Okay. obviously, That's much better, next sleep, see comps guess, I I helpful. but year. tough And for

So I growth? this into up about shaping even next sleep it the comes guess, guess we or a how better mid-teens the be should year to think maybe I business year is Because to when for year.

Jason Clemens

on -- those However, they Yes, XXXX. as Joanna. had the absolutely, year, equipment, off particularly tougher double reimbursement digit to patients rental come first of I think first a we're full PAP levels well quarter and second about to particular, Due year-over-year. that have into our the as come resupply quarter would attrit will will continuing comp, you as XX-month in say cycle, of that the half, setup the we'll reimbursement grow we that as the record in reimbursement,

growth expect sequential we census certainly in from here until go So through XXXX. as we our

Joanna Gajuk

I may, some I these surveys meaningfully to about effect utilization guess done the business, potentially you've if point, GLP-X business. could could And you sleep guess, you increases say that some on I talk And use drugs something the on the at did is so impact patients. of by the CPAP of

talking of long-term of how you longer growth business thoughts not growth term. this next were at versus your similar that when about this it you kind change think expect I'm outlook still any we for Does terms in previously? point, you out, thinking But all? it might change look year, how but Or at

Richard Barasch

to which express America, from I that is which there's a that of the a think of we came incredibly from for adoption the business people, the how X%, is out the to with the don't Bank lot lot of thinking just was adherence what just of about about good including something going thought the our stat I was tried speculation we of be. know We know. adoption growth don't fast But of going forward. GLP-Xs

know that do fewer what level that, PAP do if the margins, need to internally the likely are occur. do is to we we obese, there from to there in reduction some even to we need who who if make -- assume any are are sure lose that's fewer on to therapy. use people we of is going to steps that people are TAM we And be, take What don't case, might

provider largest And of we've We're got the tools. equipment. sleep

can So in strength. down. The investments our were painful yielding over time, we as yielded start several We've the are technology to year as have afford made past costs investing with to keep a that we benefits they share great years. to position, the XXXX, We of us. get in increased great at every

are reduce also to. keep patients people increased and and these these for One cost. that couple as patient we retention, adherence downstream of downstream to on adherence, can, results there's different to But a and patients flavors focused highly resupplying that it. can believe increasing by we is want keep We we we also

our our So also growing well. geared our of the our data keeping toward members. using things improve all are size business but and about we're outcomes capabilities for to talking and intact

Operator

Eric with Baird. We from have Coldwell our next question

Eric Coldwell

Okay.

Just a diabetes. on technical

was think year-over-year $X million pumps CGM I'm seeing $XX.X decline. were down revenue you million and I said But flat. a revenue

the So where from. additional $X.X I'm came million curious

Jason Clemens

Yes, sure.

supply. Just a little of bit

to That's like the as like smaller be BGMs, things are continuing wipes, like traditional, business. just test a of strips, part expected these So that.

Eric Coldwell

equipment lower equipment. on 'XX comments versus decline on the comparison on Or revenue first half XX-month as tough Are the rentals PAP the out? to phase you Okay. PAP, comparison? simply side actual tough indicating of the start on growth And then

Jason Clemens

growth the we that growth expect expecting, putting Eric. mean quarter, achieved up just already comps. XX% in next That's QX We're right? on in we're I former. XX% the saying, I this don't very No, all into high we're year

Eric Coldwell

states Okay. And again, million, the that was X.X million think XX inherited then on D.C. lives Humana, it I and X.X with you

all You patients. doing had you're of and those the those some patients of not for previously, HME-DME

to previously going your actually a on many those How on bear you of get But were people is how exclusive those And serving? penetration Humana incremental many if are a the you access to, states? that how on those you'll to the with are that be in many DME trying question, of of those I'm opportunity? have what sense you lives patients using difficult-to-ask

I picked it's lives percent have what If so don't incrementally, for that that actually you the onboarded up number a baseline. let's you point, what know operational fully on? but just of XXX,XXX you're this say is, at

Jason Clemens

couple Good things offer. to of question, A Eric. Yes.

Firstly, expectations utilization is far. in line so with

of within that million that number by or classified is and in kind modeled the as. line part means with patients the the them largely category X.X we our utilizing size in then and So we what with as and expectations. equipment that of that equipment, the award, of was more shape of the And shared data

that Humana last mean, I I would than you patients I week, higher tell reported, the showing anticipated. over know of I number huge growth think, is they're XXXX.

good creates a we to from But and on It well, we Humana. through help didn't timing So very more just very coming than on patients we've transition. more as continue got with thing. just some need anticipated it expect more as is that capacity which the thing us with as good push that of that's to a overall overall, to got grow we've frankly perspective a patients so

as the The that out But last equipment those not that supporting in is expect that. transition, mean, to did as did came records the materialize. I'd we say from well competitors. with terms of pace I deals thing some of several frankly, buy of

patient patient by that work And so means to need transition. we on

we're but very transition created on XXXX, the more that more confident So little again, part color through transition in expected. that's to patients will what's than of we the get early a we

Operator

to the and time, in back the closing call at I'll go turn presenters questions showing currently And any Instructions] queue. ahead no this over I'm today's [Operator remarks. for

Richard Barasch

is This Thanks. Richard.

of time what helped morning. the First think articulate forward this for thanks are and are their interaction that very in all, We your things questions that very going everyone we on good to AdaptHealth. thank for us more to you look positive

Operator

conclude Thank today's program. you does your This participation. for

now You may disconnect.

AdaptHealth (AHCO) 7 Nov 232023 Q3 Earnings call transcript