Quipt Home Medical Acquires Medical Equipment Provider from Ballad Health

Quipt Home Medical has acquired a full-service durable medical equipment provider, wholly owned by Ballad Health, for $1.6 million plus the value of accounts receivable and inventory at closing. The acquisition aims to expand Quipt's presence in the US market and provide additional services to its customers.

Quipt Home Medical Corp. (NASDAQ: QIPT) has announced a significant strategic acquisition that aims to bolster its presence in the US market and expand its service offerings. The company has acquired a full-service durable medical equipment (DME) provider, wholly owned by Ballad Health, for $1.6 million plus the value of accounts receivable and inventory at closing [1]. This acquisition is part of Quipt's broader strategy to form deeper partnerships with healthcare systems and enhance its capabilities in the end-to-end respiratory care sector.

The acquired DME provider, which generated $6.6 million in revenue for fiscal year 2025, serves over 12,500 patients annually through four locations in East Tennessee and Southwest Virginia [1]. The acquisition includes a Preferred Provider Agreement with Ballad Health, covering 20 hospitals across four states. This partnership provides immediate post-acute referral access and serves a region with a projected 10.2% growth in the senior population by 2028 [1].

Quipt's acquisition of Ballad Health's DME business represents a strategic shift in its growth approach. Instead of acquiring standalone DME providers, Quipt is now partnering directly with integrated healthcare systems, which offers a more sustainable growth avenue with built-in referral networks. The acquisition multiple appears extremely favorable, likely below 0.5x revenue excluding the additional assets [1].

The accompanying Preferred Provider Agreement with Ballad Health is particularly valuable, giving Quipt preferred referral access to 20 hospitals across four states. This structured relationship should drive organic growth beyond the initial acquisition by creating a continuous patient pipeline from hospital discharge to home care. The service area's projected 10.2% growth in seniors by 2028 adds a favorable demographic tailwind [1].

Management at Quipt is confident in quickly aligning the acquired business with their historical Adjusted EBITDA margins within two quarters through operational efficiencies and clinical workflow integration. This confidence suggests significant operational inefficiencies that Quipt believes can be rapidly addressed through integration into their platform, potentially doubling the acquisition's profitability within two quarters [1].

The company's vision is to use this acquisition as a template for nationwide expansion. By proving they can successfully integrate a health system's DME operations while improving patient outcomes and reducing readmissions, Quipt positions itself as an attractive partner for other healthcare systems looking to outsource DME services. This could significantly accelerate their expansion without requiring the capital outlay of traditional acquisitions [1].

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. This agreement further embeds Quipt into the care delivery model and enables scalable population health solutions [2].

The acquisition is expected to help accelerate organic growth post-integration into Quipt's operating platform, enhanced referral channels, and geographic density. Management Commentary: "Acquiring this Ballad Health-owned medical equipment provider and concurrently entering into a Preferred Provider Agreement with Ballad Health exemplifies our commitment to creating lasting, system-wide healthcare partnerships that enhance the delivery of home-based care," said Greg Crawford, CEO and Chairman of Quipt [2].

The transaction was completed using cash on hand at a very prudent purchase price, allowing Quipt to maintain a conservative balance sheet. The acquisition and Preferred Provider Agreement accelerate Quipt's penetration into underserved rural markets and build on the Company’s strategy of scaling through health system-aligned M&A [2].

References:
[1] https://www.stocktitan.net/news/QIPT/quipt-home-medical-acquires-healthcare-system-owned-medical-sd4q22df9cru.html
[2] https://finance.yahoo.com/news/quipt-home-medical-acquires-healthcare-113000732.html