The new center is part of a national expansion strategy using a capital-efficient affiliation model with existing sleep practices.
Key takeaways:
- Vivos Therapeutics has opened a new sleep testing and treatment center in Auburn Hills, Mich, in a contractual alliance with MISleep Solutions, LLC.
- The center operates under Vivos’ “sleep center affiliation model,” which the company describes as a capital-efficient alternative to outright acquisitions.
- The strategy aims to provide partner clinics with Vivos’ FDA-cleared diagnostic and therapeutic products as an alternative to CPAP.
- The model is intended to create new revenue streams for both Vivos and affiliated sleep centers facing reimbursement pressures.
- Vivos reports it is in discussions with other sleep specialists and groups to establish similar affiliations nationally.
Vivos Therapeutics Inc has opened a new affiliated sleep testing and treatment center in Auburn Hills, Mich, as part of a national expansion strategy focused on commercial collaborations with physician-owned practices.
The new center extends Vivos’ sleep center affiliation model, a structure based on contractual alliances that the company describes as a more capital-efficient and scalable approach compared to direct acquisitions, such as its purchase of The Sleep Center of Nevada in Las Vegas.
The model aims to partner with high-volume sleep clinics to offer Vivos’ line of FDA-cleared oral appliances for obstructive sleep apnea (OSA).
“Over the past decade, sleep testing centers and sleep specialists have experienced tremendous pricing pressure from both government and commercial insurance payers. As a result, many sleep testing labs have either closed down or sold out to larger groups,” says Kirk Huntsman, Vivos’ chairman and chief executive officer, in a release.
Huntsman adds that the affiliation model is designed to be a “win/win solution” by providing partner clinics with differentiated treatment options that can yield additional, higher-margin services revenue.
The Auburn Hills center was established through an agreement with MISleep Solutions, LLC. Under the terms, Vivos built out and equipped the facility, in addition to hiring and training providers and support staff. Vivos plans to work with MISleep Solutions to expand the availability of its products and services to other clinics in the metro Detroit area.
Vivos is also in talks with other sleep center groups across the country to establish similar affiliations.
