AdaptHealth Corp, a provider of healthcare-at-home solutions including CPAP and BiPAP equipment, announced results for the first quarter ended March 31, 2023, highlighting strong performance for its sleep business.
Company CEO Steve Griggs says in a release, “We are very pleased with the performance of our sleep business, which generated 17.6% of net revenue growth year-on-year.”
Griggs continues, saying the company is seeing stabilization post-pandemic and post-Philips recall and is taking appropriate steps. “As such, we have ratified a cost management program aimed at revamping our supply chain infrastructure, rationalizing our real estate footprint, and restructuring our operating model to pre-pandemic levels,” says Griggs in the release.
Additionally, the company announced Griggs will step down as CEO at the end of the second quarter by mutual agreement with the board of directors. The board is working with a leading executive search firm to identify a new CEO and is considering several qualified candidates.
Richard Barasch, chairman of the board, will serve as interim CEO if a successor to Griggs is not appointed by the time of his departure. Griggs will not seek re-election to the board at the company’s forthcoming annual meeting in June.
Griggs joined AdaptHealth in 2021 following its acquisition of AeroCare Holdings Inc, which he founded in 2000 and led as president and CEO until the acquisition. Under his leadership, AdaptHealth added key vendors, launched cross-selling initiatives, integrated its cloud-based workstreams and pioneered e-prescribe, e-ordering, and e-delivery services.
“On behalf of the board, I thank Steve for the critical leadership role he has played at AdaptHealth to help build a market-leading provider of sleep, diabetes, respiratory, and other healthcare solutions,” says Barasch in a release. “As CEO, he has led the company through the successful integration of AdaptHealth and AeroCare, overseen more than two dozen acquisitions, and helped us navigate the challenges of the COVID-19 pandemic, the CPAP shortage resulting from the Philips recall, and other market headwinds. Steve leaves AdaptHealth in sound financial condition and much improved operational shape, and we are committed to finding a highly qualified candidate to capitalize on the strategic opportunities that will power the next stage of the company’s growth.”
Griggs says in the release, “I am proud to have worked with the most talented individuals in the industry to deliver on our vision of transforming the healthcare experience for patients by helping to keep them healthy at home. Now is the right time for a new leader to build on our strong foundation of cost-effective, scalable technology and established, trusted patient relationships. I look forward to working with Richard, the board, and our leadership team to ensure an effective transition.”