In brief: Quipt sees ‘pivotal year,’ Optum Rx aligns payments, KFF analyzes potential Medicaid cuts 

CINCINNATI – Quipt Home Medical plans to return to historical levels of organic growth, optimize capital allocation and build a scalable health care ecosystem through M&A as part of a new strategic plan. 

The plan follows the company’s annual general meeting of shareholders on March 17. 

“2025 marks a pivotal year for Quipt as we double down on our commitment to augment organic growth and prioritize a disciplined capital allocation strategy while maintaining strong margins,” said Gregory Crawford, CEO and chairman of Quipt. “We are also dedicated to strategically deploying capital through targeted share repurchases aimed at maximizing shareholder value, while adopting a refined approach to our historical M&A strategy. By aligning with healthcare systems through potential joint ventures and strategic acquisitions, we see a significant and scalable opportunity to accelerate growth and position Quipt as a leader in integrated home-based care. With a focus on improving operational efficiencies, expanding de novo locations into favorable markets, and strengthening our referral pipeline, we are well-positioned to deliver long-term value.” 

Quipt says it’s working to accelerate organic growth by expanding its de novo footprint, deepening referral networks and enhancing operational efficiencies to sustain strong and consistent margins. Key initiatives include: 

• Expansion of de novo locations: Following the successful opening of two locations in Florida and Alabama, Quipt plans additional site launches in high-value, strategic markets to strengthen its national presence. 
• Deepening referral networks: The company is reinforcing relationships with physicians, hospitals and health care providers in an effort to drive patient acquisition and enhance long-term referral pipelines. 
• Sales force growth & training: Quipt is adding new sales representatives in targeted regions while launching the Quipt Sales Accelerator program, an initiative focused on advanced sales education and performance-driven training. 
• Operational efficiencies to protect margins: Through optimized intake processes, streamlined sales operations and improved service delivery, the company remains committed to preserving strong, consistent margins while delivering exceptional patient care. 
• Product portfolio expansion: Quipt has been and continues to introduce new respiratory product offerings, including a recently Medicare-approved device, which enhances airway clearance and secretion mobilization, which fits seamlessly into the company’s strategy of serving higher-acuity respiratory patients. 

Quipt says capital allocation also remains a top priority as it takes an aggressive approach to enhance shareholder value through active share repurchases and an expanded M&A strategy. Key initiatives include: 

• Share repurchase program: The company plans to execute on its normal course issuer bid (NCIB) in the coming months, reflecting its confidence in its strong underlying fundamentals and commitment to delivering enhanced value to shareholders. The company believes that its common shares continue to be undervalued in the market. 
• Strategic M&A with healthcare systems: Quipt is expanding its historical focus beyond acquiring only traditional DME providers. The company is currently in active discussions to align with health care systems through potential joint venture or strategic acquisition. These opportunities could come with a preferred provider agreement, which presents the company with significant, untapped growth opportunities to integrate home-based care within larger healthcare ecosystems. 
• Building a scalable playbook for health system partnerships: The company has begun identifying key health care system partners in priority markets, targeting those with established patient bases and aligned objectives, such as reducing hospital readmissions and improving post-acute care. By combining Quipt’s expertise in operational efficiency and clinical excellence with health systems localized patient flow and market knowledge, the Company aims to deepen its geographic reach and provide innovative home healthcare solutions. 
• A replicable growth model: The company’s joint venture strategy will serve as a scalable model for potential future partnerships to enable Quipt to expand nationally while strengthening its role as a trusted, value-adding partner in the broader health care landscape. 

Related: Quipt says ‘We’ve got a lot of levers that we’re pulling.’ 

Related: Quipt, Kanen announces cooperative agreement. 

‘Now is the time to push for greater investment in CGM tech,’ report finds 

EDINBURGH, Scotland, and SAN DIEGO – Tech, not medicine, is the future of care for Type 2 diabetes patients, according to a new report from Dexcom. 

Fifty-two percent of health care professionals ranked access to continuous glucose monitors and education as having the potential to positively help people with Type 2 manage their condition in the next 10 years compared with 30% who cited better or more effective medications. 

“With policymakers increasingly focused on digital transformation in health care, now is the time to push for greater investment in CGM technology as a core component of Type 2 management,” said Adrian Gut, senior director of international access, advocacy and value at Dexcom. “Enhancing CGM accessibility is crucial to tackling the Type 2 crisis. By ensuring equitable access to this life-changing technology, we can empower people with Type 2 to take control of their diabetes management, improve their quality of life and reduce complications. This will significantly improve public health outcomes and reduce long-term healthcare costs. Now is the time to make a transformative impact on the lives of millions.” 

The report, “"Dexcom State of Type 2 Report: Access and Attitudes Across Europe and the Middle East,” surveyed more than 2,500 individuals with Type 2 diabetes and health care professionals from Germany, Italy, the Netherlands, Saudi Arabia, Spain and the U.K. 

Other findings in the report include: 

• 77% of people with Type 2 diabetes who had not used CGM expected it to improve the lives of those with Type 2 compared to 93% of people with Type 2 diabetes who had used CGM and agreed it had a positive impact 
• Half of all HCPs felt CGM should be the standard of care for people with Type 2 diabetes whether they were using insulin to manage the condition or not. 96% of HCPs agreed those using multiple daily injections of insulin should receive CGM and 86% agreed those relying on basal insulin should be offered CGM. 
• HCPs see funding constraints (35%) and narrow inclusion criteria (20%) as the primary barriers to CGM adoption. Twenty-two percent of HCPs believe increasing education for people with Type 2 diabetes could drive higher CGM usage. 

Read the full Dexcom State of Type 2 report at https://bit.ly/DexcomATTD2025. 

Optum Rx says it’s looking to ‘correct imbalances’ 

EDEN PRAIRIE, Minn. – Optum Rx will align payment models more closely to the costs pharmacies may face due to manufacturing pricing actions effective immediately and with full implementation by January 2028. 

The company says the change will positively impact its non-affiliated network pharmacies, including the more than 24,000 independent, community pharmacies it serves.  

“Pharmacies and pharmacists provide important care to patients, and we recognize that increasing drug prices make it hard for them to afford needed medicines, especially independent and community pharmacies,” said Patrick Conway, M.D., CEO of Optum Rx. “This move will help correct imbalances in how pharmacies are paid for brand and generic drugs and will ensure greater access to medicines for patients across the country.” 

Optum Rx partnered with Epic Pharmacy Network, Inc. (EPN), a pharmacy services administrative organization representing more than 1,000 independent pharmacies across the U.S., to pursue a cost-based reimbursement model. 

As part of the model, Optum Rx will: 

• Reimburse pharmacists for connecting their underserved patients to services that address basic needs such as food, nutrition, transportation, housing and baby supplies. Key areas of focus include maternal wellness and meeting health care needs in urban and rural communities where there are not many pharmacies. 
• Support independent pharmacists by paying them for services such as counseling and medication management aimed at improving patient outcomes. 
• Enhance pharmacy digital capabilities to easily access claims and payment data, ease administrative burdens and manage revenue. 
• Remove retroactive recoupment (“clawbacks”) for pharmacies. 
• Offer predictive analytics and other tools to further reduce administrative burden and allow more time to focus on patient care. 

The National Community Pharmacists Association (NCPA) says it would like to see more details about the plan. 

“We have seen announcements like this in the past by PBMs that claim they want to work with independent pharmacies,” it stated. “Based on the results to date, some were obviously intended as political cover or public relations. If this is a good-faith effort, it would be a good first step in reimbursing all independent pharmacies for the actual cost of acquiring drugs, plus the cost of counseling patients, serving patients, inventory, supplies, and other overhead. Otherwise, this will be another cost-shifting gambit that will leave independent pharmacies in the same position. In either event, federal PBM reform remains essential to provide stability, transparency and predictability for patients and pharmacies.” 

KFF analyzes impact of potential Medicaid cuts 

SAN FRANCISCO – If the federal government were to cut $880 billion from Medicaid over 10 years, it would represent 29% of state Medicaid spending per resident, 6% of state taxes per resident and 19% of education spending per pupil, according to a new analysis from KFF. The House of Representatives has passed a budget resolution instructing the Energy & Commerce Committee to reduce the federal deficit by at least $880 billion over 10 years and, although the budget resolution does not mention the program, Medicaid comprises $8.2 trillion out of the $8.6 trillion in mandatory spending that E&C must use to come up with spending reductions (assuming Medicare cuts are off the table), KFF says. As a result, major cuts to Medicaid are the only way to meet the House’s budget resolution requiring $880 billion (or more) in spending reductions, it says. To put the proposed federal cuts into further perspective, KFF says they are equivalent to all Medicaid spending on 3 million or 18% of Medicaid enrollees eligible because they are 65 and older or have a disability, 14 million or 38% of adult Medicaid enrollees, or 22 million or 76% of child enrollees. If states do not offset federal Medicaid cuts by picking up the new costs, they could reduce Medicaid spending by covering fewer people, offering fewer benefits, or paying providers less. Read KFF’s full analysis here. 

TBO promotes sales exec 

MINDEN, Nev. – Tactical Back Office has promoted Corey Smith to director of sales after two years at the company. Drawing on his more than two decades of health care industry experience, Smith brings invaluable insights and solutions into the complex challenges health care organizations face in today’s constantly changing environment, the company says. "Corey's promotion reflects his outstanding contributions to both our clients and our organization," said Todd Usher, CEO of Tactical Back Office. "His strategic leadership and deep industry expertise will be vital as we continue empowering healthcare businesses to scale efficiently through our virtual staffing solutions." In his elevated role, Smith will lead TBO’s client partnership growth, while creating targeted staffing solutions that solve health care staffing challenges. The company says he has a proven ability to help clients overcome workforce obstacles, reduce overhead and generate more income, boosting their profitability. Contact Smith directly at csmith@thetbo.com. 

Rhythm promotes Saltmarsh 

NEW YORK – Rhythm Healthcare has promoted Vanessa Saltmarsh to chief commercial officer. Earlier this year, the company named her senior vice president of corporate accounts and clinical education to enhance clinical education, strengthen corporate partnerships and expand the company's market presence. “Vanessa will be an integral part of our growth story – from her strategic thinking to her relentless commitment to customers, she brings heart and hustle to everything she does,” said Doug Francis, founder and CEO. In her new role, Saltmarsh will reflect the company’s core values, including emotional intelligence, grit, a growth mindset and sincerity, Francis says. Previously, she held a senior sales executive position at Drive DeVilbiss Healthcare, where she played a pivotal role in the company's revenue growth and market expansion over her 10-year tenure. “I’m especially proud to be working with Vanessa again,” Francis said. “Watching her evolve into such a dynamic, values-driven leader is one of the highlights of my career.”   

Mobility City Holdings earns accreditation 

BOCA RATON, Fla. – Mobility City Holdings has announced that all of its franchises have successfully earned accreditation as HME subcontractors. This enables the company to provide a wide array of quality repair, patient delivery, rental and sales services for HME equipment to federal and state providers and health care facilities. “We are thrilled to announce that all of our locations have achieved subcontractor accreditation status,” said Diane Baratta, CEO, Mobility City Holdings. “This accomplishment highlights our franchise owners unwavering commitment to excellence and our passion for helping individuals live more independent and fulfilling lives. Our locations' accreditation demonstrates our commitment to the highest level of operational standards while prioritizing consumer safety and satisfaction.” Mobility City Holdings says as fully accredited subcontractors, the company’s franchises adhere to stringent home health care standards and industry regulations and guidelines that emphasize safety, quality, HIPAA compliance, infection control and reliability. The company’s network has more than 130 vans and technicians around the country. 

Man given prison sentence, ordered to forfeit $4M for DME scheme 

FORT MYERS, Fla. – U.S. District Judge Thomas P. Barber has sentenced Fernando Espinosa Leon to five years and 10 months in federal prison for health care fraud and aggravated identify theft. He also ordered Espinosa Leon, who owned Global Medical Supply, to forfeit more than $4 million. Espinosa Leon engaged in a scheme to defraud Medicare by stealing the personally identifiable information of Medicare beneficiaries and medical practitioners and then fraudulently billing Medicare for DME that he falsely claimed was prescribed and supplied. From June 2020 through September 2020, he used the services of a third-party biller and fraudulently billed more than $7.6 million in claims for reimbursement. As a result, more than $4 million in proceeds were deposited into a bank account that Espinosa Leon managed and controlled. He pleaded guilty to the charges on Dec. 6. 

Medline secures supplies contract with O’Neill Healthcare 

NORTHFIELD, Ill. – Medline has entered into a multi-year prime vendor agreement with O’Neill Healthcare, making it the primary supplier for the provider’s post-acute care business, which includes six skilled-nursing buildings and additional home health, hospice care and HME operations. As part of the agreement, Medline will provide O’Neill Healthcare with an extensive portfolio of medical-surgical supplies with a focus on skin health, including incontinence products like Medline’s FitRight Stretch Ultra Briefs, as well as solutions to advance wound healing. “We don’t change vendors frequently and value loyalty with our vendors,” said David O’Neill, director of operations for O’Neill Healthcare. “We are excited to partner with Medline and are looking at the company to help us enhance consistency and efficiency in our processes across all areas of operation. It is important that we streamline operations while finding new ways to support our staff in their everyday tasks.” Medline will service O’Neill Healthcare from its distribution center in West Jefferson, Ohio. 

RestorixHealth announces award winners 

METAIRIE, La. – RestorixHealth has announced the wound and hyperbaric center recipients of their Center Recognition Awards program for the period July-December 2024. The awards demonstrate a center’s commitment to quality patient care, optimal outcomes and patient satisfaction. “These awards recognize the effort and dedication required to meet or exceed benchmarks in various recognition categories,” said Bridget Case, national director of clinical quality & process improvement for RestorixHealth. “The determination of our winners in many cases to not only meet the criteria but exceed it demonstrates the level of commitment our partner hospitals have toward achieving excellence in wound care.” Go here for a full list of winners in each of the following five categories: Excellence in Patient Satisfaction Award, Clinical Distinction Award, Dual Award, Center of Excellence Award and Distinguished Center of Excellence. Key benchmarks for recipients include 32 median days to heal, a 90% healing rate and a 96% patient satisfaction score, among other KPIs.