AdaptHealth Corp.

Company overview

AdaptHealth Corp. and its subsidiaries provide patient-centered, healthcare-at-home solutions, including home medical equipment (HME), medical supplies, and related services. The business is organized into four reportable segments aligned with product categories: Sleep Health, Respiratory Health, Diabetes Health, and Wellness at Home.

Products and services

• Direct delivery of HME products, medical supplies, and related services to patients’ homes, commonly following hospital discharge or physician referral.
• Resupply and one-time sale products (consumables, PPE, PAP-related supplies, CGMs, insulin pump accessories, etc.) sold for a single payment at sale.
• Fixed monthly payments for certain HME products designated by CMS or commercial payors (for example, oxygen and home mechanical ventilation equipment, PAP equipment, hospital beds).
• At-risk capitation arrangements that provide PMPM (per member per month) payments from payors in exchange for managing a range of healthcare services and costs.
• Revenue cycle management, billing, and delivery logistics supported by an integrated, technology-enabled platform.
• Referrals and payor contracting are core revenue drivers; the company serves Medicare, Medicaid, and commercial payors.

Scale and footprint

• Patients served: approximately 4.3 million annually in all 50 states.
• Locations: network of approximately 640 locations in 48 states.
• Employees: approximately 10,900 as of December 31, 2025.
• Deliveries: an average of about 38,500 equipment and supply deliveries per day during the year ended December 31, 2025.
• Headquarters: 555 East North Lane, Suite 5075, Conshohocken, Pennsylvania 19428.

Revenue structure and mix (2025)

• Net revenue by type:
  • ~63% from resupply sale products (consumables like PAP masks, CGMs, diabetes supplies).
  • ~33% from fixed monthly amounts under CMS or commercial payor designations (e.g., oxygen, home ventilation, PAP equipment, hospital beds).
  • ~4% from PMPM capitation arrangements.
• Segment and payor mix:
  • Sleep Health: roughly 42% of net revenue in 2025 (41% in 2024).
  • Private payors: approximately 61% of net revenue in 2025 (61% in 2024).
  • Medicare/Medicaid: approximately 26% in 2025 (26% in 2024).

Financial highlights

• Goodwill: approximately $2.5 billion as of December 31, 2025.
• Goodwill impairment: a non-cash impairment charge of $128.0 million recognized in 2025 related to the Diabetes Health reporting unit.
• The company relies heavily on government and third-party payor reimbursements; fluctuations in reimbursement policies and regulatory changes are material financial risks.
• Ownership and structure: AdaptHealth Holdings LLC is the primary asset holder; the company depends on distributions from AdaptHealth Holdings and its subsidiaries for funds.

Segments at a glance

• Sleep Health: sleep therapy equipment, supplies, and related services (for example, continuous positive airway pressure and BiLevel devices).
• Respiratory Health: oxygen and home mechanical ventilation equipment and supplies; chronic therapy services for conditions such as COPD.
• Diabetes Health: medical devices for diabetes management, including continuous glucose monitors and insulin pumps.
• Wellness at Home: HME and services for patients discharged from acute care or managing complex conditions at home.

Market and operating context

• Serves a mix of Medicare, Medicaid, and commercial payors.
• Uses a centralized platform for revenue cycle, purchasing, payor contracting, and M&A activity while maintaining local operating managers to respond to market demands.
• Exposed to regulatory changes, reimbursement dynamics, competitive bidding programs (CBP), and evolving healthcare privacy and data security requirements.

Growth strategy and risks

• Growth has included accretive acquisitions and increasing density in existing markets while expanding into new geographies.
• Material risks include supply chain disruption, inflation, cyber security threats, regulatory changes (including Medicare/Medicaid policies, CBP, and OBBBA implications), and the potential for goodwill impairment.
• The business depends substantially on third-party payors and referrals, creating exposure to payor contract terms and network dynamics.