Quipt Home Medical Announces National Insurance Contract with a Top 5 Largest Health Insurer in the United States

Rhea-AI Summary

Quipt Home Medical Corp. has announced a significant national insurance contract with one of the top five health insurers in the U.S., marking a pivotal moment in its growth strategy. This contract facilitates entry into new states, enhancing their operational reach and patient access. CEO Greg Crawford emphasized the contract's potential for accelerating their expansion and capturing patient volume, while also indicating plans to pursue additional national contracts to further strengthen their business model and service offerings.

Positive

• Secured a national contract with a top five U.S. health insurer, enhancing patient access.
• Projected acceleration of long-term growth strategy with expanded operational footprint.
• Opportunity to leverage the national contract for future acquisitions, enhancing service delivery.

Negative

• No assurance of successful completion of potential acquisitions, posing a risk to growth plans.

National Contract Provides Access to Patients Across the United States and Provides Opportunity to Accelerate Long Term Strategic Growth Plans

CINCINNATI, April 26, 2022 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce the execution of a national insurance contract with a top five health insurer in the United States¹.

Management Commentary

“The execution of this national insurance contract with the largest commercial payer in the United States is a major milestone for Quipt and serves as a further accelerant to our ambitious long term growth plans. The national contract is expected to be meaningful as we continue to expand into new states, broadening our operating footprint over a much wider geography. When we make an acquisition, we will be able to immediately leverage the national contract, which is extremely powerful in terms of capturing as many eligible patients as possible,” said Greg Crawford, Chairman and CEO of Quipt. “Moreover, we feel there's still a lot of opportunity for us to go after more national contracts, which would provide the opportunity to add additional payers, and we will continue to work with other large commercial payers to help them better understand our strong patient centric model and the benefits to patients and payors alike. The new national insurance contract, extremely favorable demographics, and our robust operating platform, put us in an industry leading position to provide high touch at home clinical respiratory services throughout the country.”

ABOUT QUIPT HOME MEDICAL CORP.

The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.

Reader Advisories

There can be no assurance that any of the potential acquisitions in the Company’s pipeline or in negotiations will ‎be completed as proposed or at all and no definitive agreements have been executed. Completion of any ‎transaction will be subject to applicable director, shareholder, and regulatory approvals.‎

Unless otherwise specified, all dollar amounts in this press release are expressed in U.S. ‎dollars.‎

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of ‎the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.‎

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking information" as such term is ‎‎defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", ‎‎‎"will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook", and similar expressions ‎as ‎they relate to the Company, including: the national contract being meaningful as Quipt expands into new states, and broadens its operating footprint; Quipt expanding into new states and broadening its operating footprint over a much wider geography; and Quipt completing additional acquisitions; ‎are ‎intended to identify forward-looking information. All statements other than statements of ‎historical fact may be ‎forward-looking information. Such statements reflect the Company's current views and ‎intentions with respect to ‎future events, and current information available to the Company, and are subject to ‎certain risks, uncertainties ‎and assumptions. Many factors could cause the actual results, ‎performance or achievements that may be ‎expressed or implied by such forward-looking information to vary from ‎those described herein should one or more ‎of these risks or uncertainties materialize. Examples of such risk factors ‎include, without limitation: credit; market ‎‎(including equity, commodity, foreign exchange and interest rate); ‎liquidity; operational (including technology ‎and infrastructure); reputational; insurance; strategic; regulatory; legal; ‎environmental; capital adequacy; the ‎general business and economic conditions in the regions in which the ‎Company operates; the ability of the ‎Company to execute on key priorities, including the successful completion of ‎acquisitions, business retention, and ‎strategic plans and to attract, develop and retain key executives; difficulty ‎integrating newly acquired businesses; ‎the ability to implement business strategies and pursue business opportunities; low profit ‎market segments; ‎disruptions in or attacks (including cyber-attacks) on the Company's information technology, ‎internet, network ‎access or other voice or data communications systems or services; the evolution of various types ‎of fraud or other ‎criminal behavior to which the Company is exposed; the failure of third parties to comply with ‎their obligations to ‎the Company or its affiliates; the impact of new and changes to, or application of, current ‎laws and regulations; ‎decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a ‎novel business model; ‎dependence on key suppliers; granting of permits and licenses in a highly regulated ‎business; the overall difficult ‎litigation environment, including in the U.S.; increased competition; changes in ‎foreign currency rates; increased ‎funding costs and market volatility due to market illiquidity and competition for ‎funding; the availability of funds ‎and resources to pursue operations; critical accounting estimates and changes ‎to accounting standards, policies, ‎and methods used by the Company; the occurrence of natural and unnatural ‎catastrophic events and claims ‎resulting from such events; and risks related to COVID-19 including various ‎recommendations, orders and ‎measures of governmental authorities to try to limit the pandemic, including travel ‎restrictions, border closures, ‎non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, ‎disruptions ‎to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general ‎economic ‎conditions including a possible national or global recession; as well as those risk factors discussed or ‎referred to ‎in the Company’s disclosure documents filed with United States Securities and Exchange Commission ‎and ‎available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and ‎‎available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should ‎‎assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ ‎‎materially from the results or events predicted. Any such forward-looking information is expressly qualified in its ‎‎entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or ‎‎completeness of such forward-looking information. The forward-looking information included in this press release ‎‎is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise ‎‎any forward-looking information, other than as required by applicable law‎.‎

For further information please visit our website at www.Quipthomemedical.com, or contact:‎

Cole Stevens
VP of Corporate Development ‎
Quipt Home Medical Corp.‎
‎859-300-6455‎
cole.stevens@myquipt.com 

Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.‎
‎859-300-6455‎
investorinfo@myquipt.com 

¹ https://healthpayerintelligence.com/news/top-5-largest-health-insurers-in-the-us-by-national-market-share 

FAQ

What is the significance of the national insurance contract for QIPT?

The national insurance contract allows Quipt to expand its operational footprint and increase patient access across multiple states, which is critical for its growth strategy.

When was the national insurance contract announced by Quipt Home Medical?

The national insurance contract was announced on April 26, 2022.

How does the national contract impact Quipt's growth strategy?

The contract is expected to accelerate Quipt's growth strategy by enabling immediate patient access in new markets and supporting future acquisitions.

What are the risks associated with Quipt's new national insurance contract?

While the contract opens new opportunities, there is no guarantee that potential acquisitions will be completed, which could affect growth expectations.