Doug Cooper: I don’t think it’s released yet. I think it’s just the highlights are. I think the study is out in July, I believe, right?
Casey Hoyt: Yes. It’s underway. I mean, I think look here is the most important piece that we got just from the ResMed comments and their analysis of their 600,000 patients that were on path. And it does show that it reduces AHI, which it may bring a CPAP patient from severe down to moderate. But what they’re seeing is a spike in volume of the patients that are going into analyze their weight gain or weight loss scenario. Doctors are still saying, look, we can put you on this drug and we’ll get you down 40 pounds to 50 pounds, but you’re still going to have moderate sleep apnea and sleep apnea will be a part of your program in conjunction with the GLP-1 drug. So ResMed and our view as well because of our numbers and because of the growth that we’ve been experiencing in sleep — throughout the country for the last a year and half to two years since these drugs have been out, it’s kind of proven that these things are going to help with our growth versus be against us.
And so, we’re excited about that. And I think that all the technology on the back end that I was talking about in the call with making home sleep testing more mainstream through wearables is going to just going to just drive more and more patients into addressing their sleep concerns which would play into our hand down the road as well.
Doug Cooper: So, two follow ups on that, Casey. Just what do you think the regulatory reimbursement will be there? Will there be any change in that given what’s happening in the industry? part A. And B, your M&A strategy going forward, is it focused on respiratory still or sleep and/or other areas? And have you seen multiples come down that people want to pay? Obviously, the public companies have taken it to pretty big multiple hit over the past few months.
Casey Hoyt: Yes, I mean, we haven’t seen much of a shift in multiples. However, our respiratory focus is still at the top of mind whenever we’re strategizing M&A targets. There are other bolt on products that we are intrigued about that some of these targets have that are different than what we have. I’ll comment on HMP and how their additional business that make them full line DME was a key driver in our conversations with landing our first joint venture. And so, it helped us to just realize that this is the holistic offering that maybe the JV and the hospital systems need. And so we’re building that model out and its entire value props as we speak with other JV targets around the country. So, I guess our M&A strategy has changed from the standpoint that we’re not just after the respiratory DME, we’re also after the hospital owned DME that is more full line. And so, we’ll — and we’ve already got those guys in the pipeline and the conversations are teed up.
Doug Cooper: Okay. And just one last one for me if I could, Todd. The resupply revenue, I think last quarter was $5 million on 33,000 patients. Could you have just an update on what it was this quarter, revenue in patients?
Todd Zehnder: It looks like I’ve got that at $4 million right now. So, $5 million might be a little heavy because I think we’re up quarter-over-quarter, but I’ll have to get back to you on that.
Operator: Our next question comes from Alexander Graf with Riva Ridge capital.
Alexander Graf: Just had a quick one on the automating of reauthorization. Could you maybe give us a better sense of a little bit more granularity in terms of what resources will be freed up and how Viemed intends to use those resources?
Todd Zehnder: Yes. I mean, what we’re piloting at this point is using our Engage software, which is proprietary to pull downloads for compliance and then using another tool that we’ve developed internally that will go and scour the HIEs that Casey was talking about earlier. And in the event that we can match up a good download with good notes, it will free up a variety of people. We have a back office — our corporate office team that works on the gathering of data in certain circumstances. It might free up service respiratory therapist who doesn’t have to go to the house to pull a download from the machine. It could potentially free up a salesperson who doesn’t have to go and call on a physician’s office to get notes if we’re having trouble from the corporate office.
So, it’s a variety of people. It hasn’t hit full scale yet to where we’re really getting a full benefit, but it’s something we’ve been working on. And then at that point, what you could do is you’re keeping salespeople are selling, you’re keeping therapists out there servicing new patients and more patients. And then your back office can just turn more orders around. So it’s a variety.
Alexander Graf: Understood. That’s helpful. So, I guess, overall, the takeaway should be that, that largely should help kind of build revenue and become more efficient from a cost perspective. So, in terms of cost as a percentage of sales, this initiative you guys think should lead to an improvement of that or continued improvement?
Todd Zehnder: Yes. And I also think that if we’re able to do it on a more timely basis, we can turn around reauthorizations on a faster basis, which keeps people off of hold for lesser time, which should help with overall realizations. So that’s something whether we’re using our technological tools or just trying to staff up to make sure that those patients aren’t on hold as long, we’re always trying to make improvements in.
Operator: Thank you. [Operator Instructions] Our next question comes from Jeffrey Bronchick with Cove Street Capital. Please state your question.
Jeffrey Bronchick: Hey, guys. How are you? Hey, just could you go over — you made a sort of a comment about the receivables from the UNH situation. And are you worried or is there a sense that this is so messy that there’s a write off, not a material business saying, how does this progress financially?
Todd Zehnder: Yes. So, at this point, that is our like our entire focus is to make sure there isn’t a write off. At this point, like I said, it’s a cash flow impact. I want to say we’re probably $4 million heavy at Q1 on AR versus cash collections. And then as I mentioned, we’ve worked that number down. But it takes a carrier-by-carrier change from Change Healthcare to an alternate clearinghouse. So, you have to have your data in order. You have to make sure that once the changes are made that they’re accepted. There’s not rejections. So, there’s more work to go in, but that’s entirely what our team is focused on to make sure that we don’t have the smaller carriers not get through to where we would have timely filing six months down the road. So, at this point, we don’t expect to have any additional write offs. I’m confident in saying that. But it is work that’s being done and I think the entire industry is facing that right now.
