AdaptHealth (AHCO) Bank of America Home Care Conference summary

Integration and operational focus

• Continued integration under the 'One Adapt' initiative to standardize operations and eliminate inefficiencies across the organization.

• Leadership team completed with the addition of a Chief Commercial Officer, strengthening management structure.

• Ongoing efforts to strengthen the balance sheet, including debt reduction, divestitures, and a new debt target of 2.5x.

• Transitioning from single-segment to four-segment reporting: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home, with internal reorganization to support this.

• Investments in technology, automation, and AI to improve intake processes and operational efficiency.

Segment performance and growth outlook

• Sleep Health segment continues to show strong growth, driven by high patient demand and resupply business, with 1.7–1.8 million patients served annually.

• Respiratory Health segment outperformed the market, aided by capitated contracts and unique adherence programs.

• Diabetes Health faces operational challenges; 2025 is expected to be a repair year, with leadership changes and process improvements underway.

• Wellness at Home segment shows moderate growth, with ongoing portfolio optimization and divestiture of non-core assets.

Diabetes business updates and strategy

• Leadership changes and operational restructuring implemented to address underperformance in diabetes, including integrating resupply operations with the sleep center of excellence.

• Technology issues in resupply communication identified and corrected to improve patient experience.

• New sales leadership focusing on primary care and Type 2 diabetes patients, with expectations for new start growth in 2025.

• Government volumes (Medicare, Medicaid) in diabetes are growing, with a strategic shift toward primary care channels.

• Market share loss acknowledged, with competitors growing at double-digit rates while internal performance compressed in Q3.