Company overview

Accendra Health helps patients manage ongoing medical needs outside the hospital. Diabetes and sleep therapy together bring in most of its revenue; home respiratory care is another major line. It delivers supplies to patients and home health agencies, rents or sells equipment such as oxygen and sleep-apnea devices, and provides patient support. Having sold its Products & Healthcare Services business, it now focuses on home healthcare while retaining a minority stake in the sold business.

Commercial insurers, Medicare and Medicaid pay for the equipment, supplies and services, alongside payments from patients and home health agencies. Accendra Health charges for individual items and services and also has arrangements that pay a fixed amount per covered patient, known as capitation. Two large commercial payors supply a substantial share of revenue. The largest has moved to end certain contracts that accounted for nearly all of the company's capitation revenue.

The business depends on payment rates and on hospitals and physicians referring patients who need care at home. Most of those referral relationships are not secured by contracts or exclusive arrangements, and federal and state laws restrict them. To bill Medicare and Medicaid, the company must provide medically necessary services with supporting documentation and accurate billing codes.