AdaptHealth (AHCO) Leerink’s Global Healthcare Conference 2025 summary

Core business and market outlook

• Focused investments in sleep, respiratory, and diabetes segments, with divestitures of non-core assets.

• Sleep market demand remains strong, with steady new patient starts and record adherence and retention rates; census at 1.66 million patients.

• Sleep market expected to grow mid- to upper-single digits, though 2025 guidance is more conservative.

• Respiratory segment is stable, with 2%-4% annual growth expected and full product availability.

• Diabetes market faces internal challenges but is seen as a 15%-20% growth market; competitors are growing faster.

Operational initiatives and performance improvements

• Launched a best-in-class sleep setup in early 2024, improving adherence and retention rates.

• Internal process changes in diabetes resupply, including moving operations to a centralized team, have improved retention.

• New sales quotas and territory realignment implemented in January 2024, with positive sales team engagement and focus on conversion rates.

• Ongoing Kaizen and continuous improvement initiatives, with a new leader hired to drive these programs.

• AI investments target automation of intake processes, aiming for future margin improvement.

Strategic contracts and partnerships

• Multi-year extension of the Humana Medicare Advantage HMO contract, covering over 1.2 million lives in 33 states and DC.

• Capitated contracts are a growing focus, with two new agreements added in Q4 and a healthy pipeline for future deals.

• Capitated revenue expected to increase as membership grows and more contracts are secured.