Viemed Healthcare (VMD) LD Micro 20th Annual Main Event Conference summary

Business and market opportunity

• Complex respiratory care represents ~50% of the business; care includes in-home respiratory therapists and noninvasive ventilation for patients with severe COPD and neuromuscular conditions.

• Care reaches patients in all 50 states, with ~200,000 patients under care; respiratory therapists are based across 38 states.

• Estimated COPD population is 25M in the U.S.; NIV penetration is 5% among Medicare beneficiaries and under 10% including private-insurance candidates.

• Three studies showed a 39% reduction in relative all-cause mortality and $5,484 in annual payer savings, alongside fewer ER visits and hospitalizations.

Portfolio and growth strategy

• Sleep care grew 44% YoY, resupply grew 47%, and sleep represented 22% of net revenue; recurring supplies are typically reordered every six months.

• Maternal health is expected to be among the fastest-growing sectors in 2027; expansion through insurance contracts has reached Texas, Indiana and Ohio.

• Since public inception, growth has compounded at 26% annually, with most growth organic; three acquisitions contributed $50M-$55M of revenue.

• M&A priorities are strong management teams, respiratory experience, referral relationships and potential to accelerate organic growth; organic investment remains the first capital priority.

Regulatory and operating environment

• Ventilator coverage rules clarified through an NCD; qualifying patients must use therapy at least 4 hours per day on 70% of days, a standard competitors are reportedly struggling to meet.

• Competitive bidding exclusion runs through 2028; management said the program could return around 2031. Reimbursement is expected to receive a 2%-2.8% CPI-linked increase.

• Home-based care and hospital cost pressures are driving interest in post-discharge collaborations to manage length of stay and free hospital beds.

• AI investments are improving departmental efficiency; lower CapEx intensity and shared infrastructure support operating leverage as the portfolio expands into sale-based products.