Jul. 7 at 11:41 AM
$QIPT Quipt Home Medical acquires full-service durable medical equipment provider
Quipt Home Medical has acquired a full-service durable medical equipment provider, which is wholly owned by Ballad Health. Ballad Health is an integrated health system comprised of 20 hospitals, post-acute care and behavioral health services, and a large multi-specialty group physician practice. Ballad Health serves 29 counties of the Appalachian Highlands in Northeast Tennessee, Southwest Virginia, Northwest North Carolina and Southeast Kentucky.
The Acquiree reported unaudited revenue of
$6.6M for the fiscal year ended June 30, 2025, serving over 12,500 patients annually through four branch locations across East Tennessee and Southwest Virginia. This acquisition is a strategic milestone for Quipt as it expands upon Quipt's traditional acquisition model to form deeper partnerships with healthcare systems. In connection with the acquisition Quipt entered into a preferred provider agreement with Ballad Health aimed at facilitating seamless post-acute care coordination across the system's hospitals, further embedding Quipt into the care delivery model and enabling scalable population health solutions.
The acquisition brings Quipt a highly synergistic operation with a comprehensive portfolio of respiratory, oxygen, mobility, and home medical products, and a strong diversified payer mix. Transaction Highlights: The Acquiree reported unaudited revenue of
$6.6M for the fiscal year ended June 30, 2025, serving over 12,500 patients annually across four branch locations in East Tennessee and Southwest Virginia. Purchase price of
$1.6M plus the value of accounts receivable and inventory at closing, representing a highly attractive valuation and structured with favorable terms that preserve Quipt's conservative balance sheet.
Management expects the Acquiree's Adjusted EBITDA margin to align with Quipt's historical range within two quarters, driven by operational efficiencies, and clinical workflow integration. Preferred Provider Agreement signed with Ballad Health, an integrated health system operating 20 hospitals across Tennessee, Virginia, North Carolina, and Kentucky. The Acquiree's service area is a region with a rapidly growing senior population.
Provides immediate post-acute referral access from 20 hospitals under the Preferred Provider Agreement, supporting smoother patient discharge and reduced readmissions. Establishes a scalable health system partnership playbook for future transactions nationwide. Expected to help accelerate organic growth post integration into Quipt's operating platform, enhanced referral channels, and geographic density.
