AdaptHealth (AHCO) 5 Nov 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to today's AdaptHealth Third Quarter 2024 Earnings Release. [Operator Instructions]

Today's speakers will be Suzanne Foster, Chief Executive Officer of AdaptHealth; and Jason Clemens, Chief Financial Officer of AdaptHealth.

Before we begin, I'd like to remind everyone that statements included in this conference call and in the press release today may constitute forward-looking statements within the meaning of Private Securities Litigation Reform Act. These statements include, but are not limited to, comments regarding financial results for 2024 and beyond. materially projected differ forward-looking could results from in those statements. Actual SEC factors a the which quarterly number of and company's AdaptHealth of and in Because length risk uncertainties, Corp. at are annual filings, discussed obligation reflect subsequent to no this such to provided events. information has on the call update

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

presentation the accompanying about company's these non-GAAP which can posted today's You more are in call, find information website. measures materials on the

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

I am of Officer now Executive pleased introduce Chief Suzanne the AdaptHealth, Foster. to

good Thank attending Thank third morning, for you everyone. you, quarter and our earnings call.

acknowledge during needed equipment team efforts areas the sure the in. made In to the to contacted advance events storms, in from they Before extraordinary the medical severe where to Prior weather than have we the displayed oxygen they we to the weather storm, more impacted deliver of moved before confirm Southeast. the needed. we I our recent patients start, XX,XXX want the

As a I again to interruptions. their material result, no team the were exceptional performance. service for thank want there

QX to results. Now turning

was respiratory growth We respiratory, Sleep diabetes. was with line and and for revenue diabetes a with revenue, the our X.X%, to free to sleep another adjusted X offset X.X%, products, delivering cash results are flat strong decreased pleased while with decline consistent year, increased XX.X%. quarter previous EBITDA report larger in our expectations that flow. increasing in Compared

secured adjusted quarter completed we facility million noncore free and down we Jason of $XX in which cash flow. had debt. senior quarter, a sale paid credit numbers, positive more the for depth, out and delivered asset last our in an improvement margin cover another refinanced EBITDA announced We the Rounding will

leverage. at result, committing new we to now set further net with target a X.Xx multiyear a As are delevering

focus work, our Adapt this quarter, a standard Over has identifying operating the been operating which growth approach new and One past to out establishing business, structures rolling on means opportunities.

to XX% negative with approximately Let's the only by with According apnea, partly untreated. implications awareness market XX is sleep is because been but the in rapidly, increased going health and and This of obstructive diagnosed. sleep. it U.S. Sleep of start there have American living the million are large Medicine, adults OSA growing of Economy

seek patients As of evolves, therapy. to believe treatment more many be technology detection OSA seeking people those we with will prompted CPAP for

in It's therapists There are resupply programs reasons leader sleep. and reliable provide market respiratory and because sleep a our best-in-class AdaptHealth fulfilled. million The are adherence team opportunity referrals convenient more coaches is of #X the growth our we delivers highly to patients. approximately receive in new patient experience sleep conversion than to X.X is the and rates. for XX% Right now, increase

approved. working to back by getting by the self-scheduling a workflow are and standardizing for feature improve processes opportunities patient and in eliminating patients phone, the new We on introducing services thereby to reach eliminate to this need of conversion new forth the myAPP, rate

than commitment Turning and asthma on disease people Based Supporting that to we know we the patients COPD. in the Association, from these are lung excellence, like with more XX respiratory. requires data chronic living Lung have. which a American U.S. million to

of the in Our we respiratory in care. unique team market levels is clinical coordination that therapists have multiple

our To readmission outcomes this lower results differentiates we that to It designed As position support hospital of growth. rates. at respiratory better level product patients market maintain as to help help the we us area, leader in clinical conditions. strong living opportunities with a home this deliver #X and result, our portfolio and is are focused on optimizing in exploring workflows our to clinical expand

we and currently diabetes, which make lines our in of issues must, revenue, performance in have continued however, we expect fix currently respiratory sleep Our XX% execution performance areas. product that our the of and solid represents and We these up revenue. majority

competitors are are the uncovered last thought that product reviews, Following first found months. by outlook after We series not. acted of much members growing worse was quarter's attention to the diabetes The immediately we and operational the my a is of I fix. than team. And diagnostic our results, issues I to dismissing diabetes leadership my need our and we X we market line reality turned several is through growing, systemic

have actions to around. swift taken turn We us

appointed medical in one leadership service background former team, and we in leader and acquisition AdaptHealth brought new a a seasoned delivering a diabetes. we with First, sales home supplies, sleep an exceptional experience with a CEO in of in

integrated our excellence into we our of and its the increase resupply to diabetes leadership, products sleep replicate center resupply performance. Second, processes leverage of

here are acquiring we patients we Third, market CGM most necessary single actions board. is control, thing our know important timely to to the that being the do. able to is taking executing service improve new Notwithstanding and and a within dynamic need them across the environment, we

Our are to XXX diabetes AdaptHealth quarters there put of us an yet the impact. expect XX time The more to improvement guiding few million perspective, than Unlocking potential diabetes with will that take it have balance million American in prediabetic. for patients States. an appropriate been have amount these demonstrate being Association serve are the of year all for down and in our the growth underway, almost more provide we than Diabetes diabetes, efforts imperative. numbers XXX If on reports are million results. to in we that United Americans what has to based a now actions learned Therefore, we we

providing a terms, that to patients In Today, exceptional service number proudly increasing year. of simplest patients the growth million our X.X is need support. serve we about

AI the on were massive I unstructured like few we moving health from incoming The was topic of and is quickly to this to production. progress technology with have we to AI is data I to is we inception report ongoing that an would front. automation. Last deal am moved happy to care experiments making with amount receive, which a that use Another challenge. on quarter, mission the I update the we mentioned doing are low-cost you and

proven weeks, with received And This legacy the faxes with technology With prove automated be the enabled workflow. to every of XX% was by way rely a are people matter accurate and information we get of we process. the to AI In on of to process first done, successfully the new our accuracy. we do parts to in our those compared so XX.X% month, automated step and X can we has correct more than of into a million things combination workflow. pages faxes the

us optimistic this that improve in reliability across see ability is deploy rapidly our viable about our are to a We efficiency. We and workflows performance, option for responsible. technology as our a to AI way

are use We improve cases that our prioritizing to will service. ability exceptional deliver

rigor initiatives delivering good due I cost to improved we operational past to improved in results. and management successful bottom invest note that were quarter, technology this to and line while able think it's people

this quarter a we is results single as last the In will segment. report addition,

our importantly, allow health, We architect are at of our it and shift segment. moving This consists insight focus into growth performance. us to Most in health reporting respiratory a our segment and X-segment to home. each reporting increased resources will enable diabetes transparency to for will structure sleep wellness and that health,

ahead. continue I to the about road be optimistic

growth identified opportunities. have We

in allow to us assembling homes. in areas serve investing patients a that team high-performing are their more We even and

is continuously on Our improving focus and execution every day.

I that, it over will to with turn And Jason.

thanks for Thanks, our and today. call to Suzanne, all joining

For EBITDA free adjusted the cash third flow. delivered and quarter expectations against XXXX, our we of for revenue,

debt. financial strengthening disposing in also position, credit made senior our refinancing our paying considerable down progress and We noncore assets, of facility

we the the to completed to certain rehab party. a custom sell third announced During quarter, assets transaction previously

As for a reminder, these $XX assets was million. the annual revenue about

out rate going revenue forward. of So that HME comes run our

million a we represent that alternatives of we updates provide do for consider sized fit couple to progress aggregate, not those similarly into than categories In our annual continue revenue, and less with initiatives. as they core of will make We strategically businesses. product $XXX

our to revenue quarter revenue following expectations up million fulfilling $XXX.X with compared recall. of Sleep a was X.X% in third line XXXX high we XXXX. as comparable a prior Third over manufacturer quarter due from $XXX.X starts the record of of the increased very in the to year, faced net X.X% million backlog

X compounded $XX.X million XXXX, quarter against the of X.X% million in third $XXX.X perspective, annual years, grew growth. of past sleep revenue For representing the over

impact Although schedules XX,XXX and CPAP pleased to and starts. starts the previous Sleep activity, stands experienced the from were we up July fleet typical another sequential August testing from resupply now QX, million quarter. at deceleration surpass patients, again as XXX,XXX over X.XX census referral once

Our CPAP survey last XX% weight or were loss, manage up to diabetes using of XX% respondents from quarter. GLP-Xs indicated

indicating adherence GLP-X detecting surveys, a a very slight into patients our Now uptick versus are usage. not year in CPAP we

an patterns. So difference immaterial ordering is in resupply far, there

report these and monitor goes We as will to on. continue trends time

third driven of revenue. revenue to by lower XX.X% Diabetes decreased XXXX, compared million the of CGM $XXX.X quarter

Before those stabilization details, $XX.X million about insulin year. pumps flat we the of against get quarter, for into related regarding see were prior to the we and supplies encouraged revenue representing

XXX% For shifted CGMs, as in discussed to we've reimbursement pharmacy pressure policy previously some reimbursement XXXX. channel payers

headwind lost remained overcome we with has orders. year. to sales steady landscape XXXX, But That a that in of new members handful to over the failed access we as in markets early

orders discussed. recur than by fewer shipped also impacted We Suzanne operational expected, challenges the

third exceeding led $XXX X.X% the our of oxygen, increased XXXX, million expectations. revenue of by to Respiratory compared quarter

periodically. on service. XXX,XXX first recently, until And oxygen our patients that been census time-consuming the time refills surpassed in oxygen to a For on history, process. tank need our patients order actively has Most

myAPP During recently these without response tank in launched new quarter to of in in service patients an OX launched second interact representative X.X% as was chatbot launched technology patients the This as having only our ago. tech our technology with the ordering with refills of interactive systems. XX quarter, well platforms via voice X.X% through customer telephone ordered days OX just Adapt

progress So making quickly. we are

assets. million Revenue from prior categories our $XXX.X aligned by of custom with driven loss over the other certain of revenue decreased product sale X.X% expectations year, rehab all the from

Turning to profitability.

of adjusted were by outgrew lower-margin was products as in products for enough labor mix, EBITDA a pleased same raises higher-margin other expense XX.X%, reflects million period expenses labor and margin pay expansion improvement installed of margin This with respiratory EBITDA an maintain meaning and year. the year-over-year salary to expectations. inflation. slight over quarter our and like sleep $XXX.X line efficiencies that diabetes. to merit-based G&A driven last we revenue We were Operating like Third adjusted

Days the XX.X, quarter XXXX. was in this was previous third earlier revenue for of of Change the receivable operations down continue against from of $XXX.X quarter of $XX.X X.X% to QX normalize million, Healthcare from X.X% as Cash down the accounts sales year. XX.X represented CapEx flow in situation million outstanding revenue, following

Healthcare Change million. million $XX.X Funding loan pay the earlier Free estimate year. offered million that assume Program target off related part to Assistance cash our the would Optum's $XX That million $XX as $XX.X outage Temporary outperformed flow of of of this we

However, that year the we mid-November payoff of are produced still did flows again raising so adjusting full strong not outflow, we guidance. mid-October. excuse the -- After me, cash until for for timing occur that cash quarter,

During credit. our of lock A loan the third quarter, reached we of final maturity $XXX $XXX loan the and funded used debt senior $XXX revolving Proceeds a fully $XXX term penalty of secured million term loan to million company's a new credit existing a in without January million fully were from to facility line million repay consisting amended XXXX. term the agreement to due

balance the $XXX the facility, The million size had million reduced no at $XXX revolver decreases new The the revolver fees. quarter. the end of revolving third which existing company's secured senior undrawn facility, replaces credit commitment interest drawn XXXX. new to bank the credit new facility extended for pricing rate maturity up from is pricing the existing decreased credit in XX, September rate and interest AdaptHealth's The

an end A third paid we balance, XXXX. in of the quarter, $XX of the a of to loan additional against At term X.XXx in the million compared net the leverage resulting X.XXx ratio quarter third

remain very schedule are have Xx net pleased debt. down of our of we leverage focused on ahead to target paying We achieved and

so are net a new at that leverage company covenants. much for So multiyear leverage, our target we X.Xx introducing as the net in defined

acquisition expect limited. and will medical free But flow in access scale increasing on but next makes important to future quarters, When the will paying equipment providers the We our expect we to as focused sense, acquire to conversion. us. cash activity few are it for and otherwise down debt where remain acquire, be we home and

down we're For EBITDA in midpoint our diabetes. of and to midpoint the trends responding revenue balance million, XXXX, adjusted our million $XX recent down $XX adjusting

to billion, we be adjusted working full updated revenue of capital, in trends billion to million. of million. flow be to cash in $XXX net guidance updates, million with be continued Our the million $X.XX to And range free expect $X.XX to in $XXX the even range in of given year to $XXX $XXX is the EBITDA these positive the range

up the we'll Operator? that, for open questions. With call

will with take And UBS. Instructions] Caliendo from question Kevin we first our [Operator

mute. Sorry, much diabetes issues more Does is want just I to I more bit in the manufacturers? Is more through depth. pharmacy versus How happening what's of what's end with in on in a really what's was be to DME? help I would apologize. around with Like markets go of issues great. collaboration? there clients your any it and the market, market this require -- little related of it a moving end terms the happening happening

A Kevin. revenue with not to have issues we specific the of in couple Yes, manufacturers. comments. No, any compression identified

from various very good coming manufacturers of In walls. as the partners fact, devices of manufacturers work the of mean, have four and CGM I supported have data parties pump been over well their technology years. our the all and with inside as integrations good to they

done frankly, a that know amount collaboration you've companies. kind across before, that work of different takes, of that, tremendous working If you

We reimbursement face pharmacy certainly are pressure from continuing changes. the to channel

referenced prepared we our So in remarks. that

not have major this saw first We saw in the second what in what any seen payer activities against the quarter we or we really quarter in against quarter. shift

have even prior the to steady. from some so overcome we that has remained year, though And environment do pressure relatively

anywhere operation the deploying believe that the on we I have operational is saying just overwhelming mean, is we through, folks, are market. it And had the pulling are towards from part sleep we since and or two been side, near there minor a do recur sales growth expected some then tick improving. we represents starts that are resupply frankly, the What our recur we in revenue. new have and that not expectations such in our we challenges that an unpacked, of adding

If third we're impact, a have the you degrade absorbing here what and in performance, that's it big quarter. can

to the partnerships and I'll regularly, I'm say with a our and that I get taking partnership is down see just are manufacturers to life. on that to of double happy think meeting on strong continuing whole that, that We're stronger.

can next think it been that to has internally So we the should reimbursement today know But a we fix a I is our own shift And grow of we end obviously able we're that's headwind. through positive. given over of that markets. about the not operational quarters. through message issues believe as The what couple be what result the growing I

logical does that? that this quick the revenue then, around will That's helpful. for follow-up that X%. headwind If But issue now, think I into with growth can be how we think having is about ask much a If is impact I'm over think do a asking bar I 'XX? that you And could diabetes an you're as think one, the guidance. about for 'XX? incremental not does we the 'XX, spill

I to fourth when we the mean, I'd about say plan we we February the million. we Well, we'll But we're 'XX line -- guide we third in more think saying report I revenue top ins of delivered fourth quarter, what there are think fourth outs committing the $XXX end than the essentially, of not When We're to $XX down I quarter. here Kevin, that the -- and that. quarter. mean, at in to million the that quarter. near took is by

to in people want we we against business many we the our right operations specifically mean, million most in seats quarter with years. compression the last produced which our performance all the a right fourth believe, changes, center reorganizing that Nashville for of out in have overcommit. sleep many, don't year resupply organizational has incredible because resupply creates have, of I do the guided down, $XX right We

to just know sequentially not going focusing And more even any we to we're commit until growth are on so doing but so. that in that, confident we're we

do here how I updated we'll going some goes So But and got our that guidance with to saying. that we're and we've without ahead we impacts us 'XX. think We 'XX, at days mean, another stand -- work, it I we pressures time. anticipate of come as in back today, XX

will Matthew Stifel. question we Blackman take And our from next with

of this going business. touch like of it And it here. you're on prospects on does also the way, this sort to bullish still maybe long-term frame diabetes I'm sound

diabetes single the a perhaps, higher frame? I course, past, recent growing time of still about digits. in maybe in Is think play over you've longer that talked

And understand there. speaking, execute you I how maybe just into then new your in to force patients hearing hoping how been question. thoughts was practically new a be getting follow-up CGM on interested better get just franchise. after expansion. you Obviously, in But sales the business? I'd there's the do patients a

the Jason, with start then, I'll go and part the of to back the question numbers. Okay. second

the around go #X different the starts side. and do a CGM And is can So literally salespeople third just to we out we cannot, my new result. as as there increasing plan only put in the on are is sell the opinion, business. more operational need the and to thing the good continue plan of you point obviously They across more expect

this improve what can have quarter in bring CGM so or you timeliness us, I've a we which is that order beef for ease how we that uncovered patient in. new up And to and the

promise pushing so we referring our looking on to is our is that team fronts. are when the do two a more market. in streamline make easier with the salespeople out at go service it how so line we're levels provider, One operations we processes, that can And

couple been delivering on quarters, in last the behind lagging have of timeliness over we promise. that unfortunately, And of the

performance force, quality. our glove and referring speed are And so can that having at And with with same our making time, we're so white deliver the their sure the and the charged operators providers. sales workflows out stabilizing going experience with we're a and streamlining we high-touch,

two and to the look end about the question market different offer at growth, we'd Matt, ways think, that. regards the I to in

consider if in CGM XX%, one reporting necessarily, when the think QX think mid-XX% that and but low accounting They're single XX-XX other a the not in very from comments it's whether mean, I I XX%, you're -- we ballpark. somewhere Firstly, in to manufacturers, marketplace the be reporting digits X%, going that, the I growth. for

The second for than be implying growing as of when data point single-digit faster diabetes believe the asked, to have the that, we segment, I quarter, some X% reported recently is look, a X% to And that. producing competitors mean, upper growth. way, growth public what leading is they're our

points two is alone, So fact, data And compressed perhaps quarter. the those do digit, double XX% digit. in lower we upper market single that growing we believe almost this

remarks, like prepared in So is Suzanne her said the market growing.

competitors growing. Our are

not. are We

And the that in work fix so putting to operational that's we're these challenges.

it. Got if I think, And growth, organic maybe, follow-up and in squeeze just one particular. I could Suzanne,

You've said, identified, growth. you organic sort of for opportunities

and kind about that that. accounts think be heard think of over a a contracting. things of maybe opportunity us I national interested in of if the you of the be just some I've what give opportunities? about several like want the talk you organic talk hearing little you next for would in years, Can the to national about Adapt sense past, accounts we and other profile as company could Or the

Appreciate that question. Yes.

believe So come our here. growth investments improve last as technology quarter made I said were additional we're line that organic Those The what is, though did from at this beefing or people to there's accounts two the team. up investments. calling end, people we continue for sales I enterprise to even national able drivers reason we bottom and

about. around doing in systems. in we the nationalized I'm that patients systems. geographies a have are of health which certain with health from and when systems very, in program, discharged is seamless nice the that, partnering experience large we a We are job not larger But One process very now to optimistic have health do

I on think proposition have value an that front. we incredible

that in investing we're area. So

covered other is that total focused the lives. then highly And increasing we're on area the

care managed fair sure our and make have covered do share team our of that we lives. So we how -- the

we can products. that one-stop when that any and So take payer, total almost our basically in, any we referral shop force a of can says sales portfolio we goes offer the for source be

to it we can for send you If well deliver we us, patients. promise your

Coldwell with next we from And Baird. our take question Eric will

year in in in million fourth sales Okay. diabetes, quarter. It you and redundant $XXX well could very did but be obvious, last the

to you're This quarter, only committing million. $XXX

confirm So to the of that's the I only guidance, revenue diabetes equivalent just million want the $XX revenue change. guidance this adjustment is that to midpoint

a then a This bit secondarily, bigger is little this missed down. much of dollars. millions diabetes And handful step here Margin good. quarter, of you was

whether the from quarter is 'XX, what going it's outlook? So margin or the diabetes revenue fourth into significantly impact, reduced

I mean, down Sure. When million were were the internally, we QX, Yes, guiding guide we due we about what line performance. the we aiming diabetes. to diabetes. down we'll at that for think confirm down are top about CGM recent $XX is

the this. And rolled in so committing rest that's ahead. that a We've the it any is just sequential of not But quarter. little bit of to growth

get up a we bump deductibles we again, Now issues, aren't there's it's all diabetes just quarter. higher and resolve But it push pretty typical is ready to big the a these as have impacted. to until But fourth commit in reset, growth. operational to

If referenced come top guidance out you forth at quarter. passed the of a about wanted think of mean, about to good we'll about we mean, we to hitting with February. the 'XX, the that, bottom way. fourth as for numbers line. we that X/X $XX I end million. million And the $XX as the [ ] we we earlier, And through put the flow-through feel of very think Again, EBITDA took of that line I same

the Jason, for so, both all revenue and the And was the change diabetes-specific. of EBITDA,

Yes, correct.

Okay.

on problem, else back you're There's that track. fix you nothing here. So

I and reported Yes, out as in that's to solid slowly. product then future that's other at we've at line. demonstrated, that categories, frankly, which lines, product And we're all consistently, the out fourth the Respiratory, of we will continue -- we when year-over-year. we a quarter sleep get I is think, of couple home. a mean, right. We look what million add a of quarter wellness expecting compound other believe expect as will

$X the QX. We're going custom reported rehab million take from the I when flat we to disposition. expecting update for in about last $X asset guidance performance. accounted out We to that we're generally million mean,

think So of yes, better we'll I if be diabetes, But rest as product as performing mean able portfolio. lines will that expected. better we're to that the the do in are a

we from take Tanquilut Brian our will And next with question Jefferies.

talked you app prepared quick Jason, remarks, the the the in about that seeing guys progress you're and there.

opportunity center thinking XX reducing call how operations center the just or call So over the or the about interactions the savings you're months. from with year patients curious next next

Good And respiratory, against question, company to may one people I our Yes. our intent sleep some these these the leaders. forward disease and Brian. market with and the The TAM. resources assembling going each that I patient chronic answer large against nuance. being it's categories, getting is mean, TAM, focus of of it's we're that Particularly really after them, growing in in states, of intent large rapidly. right, respiratory

And to so people our growing fair is the taking our that and more here intent share resources than around assemble line. top really of

So figure potentially out the those want goals. to or really increases on patient people outcomes, to day resources day up better experience, volumes, converts the well, waking right? that every and focused all is how patient intent drive rate improve we more As and

that here new been are of been so amount data these will forward. to We growth through great learn capitalizing respiratory. go capturing And with a there's faster. that's We're And tech We'll dedicated . more. already going conversions this going leadership, think people yes, tech on these rolled those out. installed with focused interactions on be from tremendous

want automation days know I I the terms AI for thing early say just of on it's encouraged launch I that? us ability just quickly. to move I one myAPP. have to our and of been of But Can the incredibly add by our in

That that existing of and we take is on As to I matter something was prepared was tech architecture put a infrastructure our already it technology. into said, advanced because more production. weeks this

worked partner And that's said, go. to the on so not have front that do infrastructure our most ready this companies already with we

features increased in And able going rough, if the this deploy and will, infrastructure that technology be you responsibly to automation rapidly strong so and diamond myAPP AI. to of the a we have we're

AdaptHealth. So I suggested. strength more to I come, early as think it's of do But a days

follow-up. Appreciate that. And then my maybe, Jason,

Just rate you into rates I as do that about for calendar what looks Medicare XXXX, visibility have like? think adjustment

don't out December visibility. want data. [indiscernible] that of in some hearing is the offer don't ballpark. Washington. we X, expect based fully schedule. X, would expectation speculate. have We We It's on to That typically Well, what we published fee But our kind of we're will

schedule, may is those months that They constructed June take through an fee prior year. compares it follow XX the I For mean, it's prior measure. rolling very how of closely, year. that inflation-based of CPIU the not those It the

be So labor It factor we has measure could be there so. Historically, already. X.X It know depends that rates or It's about on X% against number that the a productivity down. brings been year. applied point. point, inflation X that could the

formally published. some hopefully, speculate of those until So thinking. are on But generally somewhere in want to that provides that ballpark is what we things perspective. are But again, don't we any

next Partners. Mayo And Whit we our from Leerink will take with question

quick just I got one one.

the any expectations, additional other still to helpful. Just And be on tracking you just would excited expand? about. something any thoughts about, Just internal Is with this Humana that that that's not want what versus how you're contract, conversations excited other payers?

doing spot Whit, of We more good. this Humana say right want is I'll incredible, that very business. on,

If you putting opportunities link more care to in around they like and business are national more back there into managed my comments on are enterprise Humana. with tasked investment people engagement, accounts the

We are the that exploring I is us. think good that's business those. very of for type And

soon. have of hopefully, those worked big And share Very Humana to there. we'll partnership So out. good, has more

Close our from we And Canaccord. Richard question next take will with

Yes.

Suzanne, And potential well? Just then been highlighted. I have the bit as changes can little you two of team, these the made, Jason guess, that the a specifically about that questions. businesses talk on other the more in investments diabetes divestiture

can Jason me talk divestitures and team. the Okay. the let about address

And way Diabetes, was leader. President we will, and had business. the we a organized have we sales you So stand-alone, then if were of the remainder COO, diabetes is a of the somewhat

Manager. So Sheehan is in larger our very his former of tapped CEO as these a changes, what we one I did Gary General to acquisitions, of is name experienced, be said, we

president the mentioned The report the going have to Scott past. Chief General Operating role. new our Barnhart, abandoned we've Officer, who Manager So in to is in

reporting on need Diabetes it The sleep to for what is our makes leverage in the business, of change we the reason that business strengths for the and to so do the much side, where sense. of remainder is because respiratory

the having was entire business important so Chief sit it that step. Adapt underneath Operating can the GM where the first sense Officer, leverage makes And an

without Gary of essentially sleep is each he'll long In leading the for the diabetes words, new in has the the business a timeliness the his business. service, catering in same experience. say, the machine, patient, big history CPAP

I'm going in also AdaptHealth optimistic a broader very but our diabetes about to So the leveraging the and his improve he's to experience think how about mindset business business. business, leading

his was in didn't Google, that, perform for the experience very sales has recently business, at His have been med like background, diabetes getting spent brings Second why it top have, that new -- force he over where is territory at He's around that putting sales that appointed we leader the sales should we quota us time came Graham leader someone season name in have, to a most he's device with Medtronic, understanding accounts in arms and [indiscernible]. a joined and Cardinal sales the likes then a national of management. deep that from expansion role.

army But not salespeople only together doing work we HME is and how side exactly more have saying, XXX he's do on the our the at everyone use do. support where turning do XXX out to Because there cause? around doing, importantly, as we Gary looking help across most salespeople, AdaptHealth we bring that important XX our the today's to to thing knows need the of is diabetes but diabetes how we

that jewel to became our of that, we crown standard moving about resupply excellence. In the work, It Nashville. excellence solid. business. sleep center is have a business then and of obvious we at have proven this resupply have AdaptHealth talked leadership resupply out diabetes They processes, addition clear of team we That

team, business that shifted And our in so we organization. to resupply that

deliver through the to infrastructure, be a we'll so better to And we that able patient. experience believe resupply

excited so bigger are changes. about the And I'm Those work. that

the Chief who's timely Officer So have from quality new top, the Operating we service. driving

we the gentleman leader will do paying the sleep that new and of who integrate manufacturing and a on that's for the We the sales Cox across a have how AdaptHealth, [ attention new named runs to then taking Matt use General a resupply diabetes be ] Manager and best us. relationship, best resupply

of be of talking We're potential we home. switching about -- in assets. in then gears, Richard, some the future subcategories at we'll the to what And really wellness disposition calling

And so there's at wellness products different inside of home.

metal: include wheelchairs, walkers. beds, the bend classic Some

you the securing we areas, deliver lot. like important, you're patients. to service, more that where preferring other excellent Now providers our very business that sleep. It's And particularly hospital you able button in most for in be a those core referrals as earn respiratory are discharging and easy relationships, notably

lines of parts that I like X And are around. other pieces built rehab, products of this if enough mean, the of There's and can these large. up segment over get When so of custom infusion do those comes and to of were home. that pretty products to -- you are assets you we've collection core, into ancillary, the core long that will, we into those of to mind. inside Home that business some much intend is wellness other acquisitions. somewhat one years a

someone does we growth I is and by we'll but else. updates will They're into haven't business focus get is, for take won't other margin, And the provide to line of paid attention. So pretty These be to -- frankly, those enough going into them. continue dispose ancillary forward. and of should asking I just decide where owned examples, low really areas there when to our in improve if like, deliver assets we those us, questions well, process better product that answering making questions those that's But today. core? does mean, where we're we're So ourselves are determinations.

we And from [Operator our Instructions] Deutsche take Pito Bank. will next question with Chickering

Can in you you call. about issues reordering talk little a to back the the CGM -- talked

reordering a had such your business. whole for for good model You DME

it those quantify and are So were if delays are how delayed in CGM pharmacy can can and delays the and you big fix in those DME? how why reordering, those you both

of a Pito. So couple things,

Nashville of mean, that and top of got working used First, Brightree. we've is center. sits operations tech of on sleep that there, and center, resupply we'd hundreds starting say that that our with The hundreds out I people

developed design workflow. and employees Some of so ingrained And at our by AdaptHealth into frankly AdaptHealth. was core that it's

benefits to of cadence. precision things that with work following aren't the with knowing proper model like different operates or they won't that things patient it team the patients resupply adherent, the So proper that explore. what works And exactly advise of We know qualifies properly they for. patients, fitting have on aren't might a

with And that. those are highly teams so skilled so just

frankly, we companies diabetes different had work had yet operation on diabetes not integration do we because the our Nashville, resupply bought. integrated to X into Historically, that we

that consolidating And And into work was those of onto a databases. been completed. single went work couple so platforms, patients there of years single all has of that

has And that so the team is that. into quick to advantage and carrying and Nashville all diabetes take is capability of Suzanne we've that bring out out the got of a infrastructure now the move directed very and

first in prior mean, In in I from we And mean, think it pharmacy. was buckets, year, make to XXX% that named three we've change, pressure compression had over equal specific calls that terms of overarching being buckets, that of to previous quantifying, the the the fairly up. ground payers that I shifted real reimbursement

And so well as we that, changes absorb to those lap in we will next until fourth we're quarter and continuing year. the

I that was lot down revenue starts. new a mean, these I to were in their said, little the an then QX call still had done it going have we workflows, do end starts, is think that that. Gary, be great and job a new But we that we others miss a Suzanne in QX, early there's in lot a second QX. new. optimize QX, to an a in mean, Graham quarter too short are as miss made against folks The for. of and adjustment that to but carryforward sales just impact And to and into are with

on timely and ball and And recur, who finally of frankly, we've in just products. is that eligible the making dropping order confirmation delivery the when got then sure is

the XX those buckets. next brought areas the to Suzanne against the are those days. X we're X are here going that And run So for over that the plan

DME. question you here, these do Okay. a market Great. I the then guess, channel the X X looking and what just overall think can you And in guys the XXXX? are years, guys you think kind as about sort in growing think grow of that out channels? at of you pharmacy channels, channels between both within that where growth And follow-up do growth

for are the comment I we capabilities similar with We quite same have do now in or again, know are to there that mean, Yes. early on competitors nicely. us or even beyond. growing that space that 'XX right too

And then is stabilize to our and and back focused what we're to so that's job first on. growth compression prevent get and mode,

Capital And with RBC we will Markets. take Ben our next from Hendrix question

maybe apologies that a if talked shift, quick you I But this. question, and channel. last missed of carriers among DME reabsorption some about back transition or Just think channel quarter, some I to some the

was will Just how there even there how outlined of balance Is wanted -- of if look expectations incremental any Or your that kind there out term? see XQ. you've for into But that seeing? of long that could back to transition any is any you're indication indication to year? kind any next

advantageous. a quarter. in last X that states was new I regarding policy since mean, call laid Not to Jason. it's reference we Medicaid, did where somewhat Southeast they've Ben,

nothing top the to some we're our line. So that's But it's business. work impacting start doing earning there material

publish into we'll future talk as one we're we'll reserve January. about we comments have season at I other enrollment of Regarding the until any end February. wraps up policies shifts report And when think those open or way or the getting new changes, to something and payers

appears it I we Suzanne now And turn questions you. Foster. at this have further to will that the no time. program Thank back

we you with this mean, improving is I XX% of being of area. And the there and morning. take kind derisk for on definitely in away, focused everyone, again, the guide once team the Well, an that want hopefully, to revenue. I incredibly to that We diabetes really in we have issued to that and [indiscernible] time our the is rule give got tuning that perform. just are thank you the today XX-XX opportunity

continue But XX% solid. org the structure our addition a perform to core and of technology we will of continues optimistic of that well are opportunity very continuous We're There's our working obviously and improvement. myAPP business about our business work. But with that future. on for and people of as and an lot the

So

I road, hope on to see again. out you and thanks the all there

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

You may time. any disconnect at