Todd Zehnder: Yes, that sounds about right.
Doug Cooper: Okay. So, and then the Q1 guidance, again, excluding if I compare Q1, your guidance midpoint to Q1 last year, which obviously didn’t have HMP in there, it looks about 10% and then sequentially about flat. So maybe just talk a little bit about what you’re seeing on the growth side?
Todd Zehnder: Yes. As it relates to 1Q over 4Q, the main thing- or 1Q over last year’s we do have more of our business coming from what I would consider the sleep products, which has- is it probably a little bit more susceptible to deductibles and seasonality. And truthfully, as more of our patients hit insurance changes, it’s becoming more common that people are swapping around on insurances and it puts patients on hold. We don’t lose the patient, but we just maybe miss a bill or two that is seeming to have a little bit higher impact on us. As it relates to the 16%, I mean, I think that’s- it’s a really good growth year for us. It’s not as high as our historical rates, but we’ve always been clear that say that as we get bigger, the ability to grow 25% and 30% is getting harder just because the notional amounts are getting larger.
I think the one important thing to think about as it relates to sequential is our new patient starts are as high or higher than we’ve ever seen in the first couple of months. So the fix is there. We just got to get more patients to see their doctors to get paperwork submitted and we’re on track with what is setting up to be a really good 2024.
Doug Cooper: And then just- so you talked about would say that’s going to set up well for the resupply business. Can you give us some actual metrics of the resupply business in quarter 4.
Todd Zehnder: In Q4 or for ’24.
Doug Cooper: No. For Q4.
Todd Zehnder: I want to say that Q4 resupply made up about of our revenue base as a company. That’s- I don’t have that number right in front of me, but I think that that’s probably pretty close to where we are. And if you think about it, and now that’s including both Viemed and HMP think about where that was probably a year ago, that would have been at best 3%. So the resupply, I mean like we’ve talked about, our own organic Viemed sleep growth, the end game is to get more and more patients on that resupply program, obviously, continue to set up new patients for the- to add to the funnel. But that’s what we brought in with H&P, our own business. So when I referenced several times in the script about transactional revenue and being able to generate free cash flow, the fact that we have that number upwards of, call it, gaining on double digits is a major milestone for us.
Doug Cooper: And are you seeing sort of roughly $600 annualized per patient on the resupply? Is that a piece of number to use?
Todd Zehnder: I’m sorry, Doug, what was that?
Doug Cooper: The revenue per resupply patient? Is it sort of annualized run rate about $600? Is that the number that makes sense?
Todd Zehnder: Yes. I would say we’re about $200 to $215 per order. And it just- I mean, if you want to say that 3x that, that might be a little high for us. I want to say we’re somewhere in the 2.5 orders per patient per year, but it may be gaining on that. So somewhere between $550 and $650 per patient per year.
Doug Cooper: Okay. And what percentage of your sleep patients will be on the resupply program today?
Todd Zehnder: As far as our active sleep patients, like the active PAP rental patients all SP-3 I mean everybody that meets compliance on the resupply program. So if we end up we’re setting up 1000- about 1,500 on a consolidated basis a month. Our resupply program is more probably in the 30,000 patients. So it’s obviously a lot bigger because the PAP caps out.
Doug Cooper: Okay. And I guess just as my final one. The actual vent patients, 10,327 to end the year, up marginally from the 10,244- can you just talk about your outlook for actual vent patient growth this year?
Todd Zehnder: Yes. Look, I mean, we’re going to continue to say that our expectation is to grow that patient count, call it 100 a month. We didn’t get there in the fourth quarter. We’ll see if we get there in the first quarter. Obviously, as we get larger, the attrition is higher. You start out with- I mean our average length of stay- is staying at 17 months. So we’re losing more patients just due to expiration, unfortunately. But some of the stuff that Casey talked about where a lot of new sales initiatives, and we’re obviously out there trying to get new regions and new contracts. We still show up every day, expecting to grow that on a net basis about 100 a month. Some quarters, we do it, some we don’t. We’re still very confident that vent growth is going to continue. And once again, I’m very pleased with where we’re seeing new patient setups in the first quarter.
Doug Cooper: Okay, great. That’s it for me. Thank you, guys.
Todd Zehnder: Thanks, Doug.
Operator: [Operator Instructions] Our next question comes from Nick Corcoran with Acumen. Please state your question.
Unidentified Analyst: This is Megan on the line for Nick this morning. Nick had a question regarding the vent patient growth and respiratory illnesses this winter. Have respiratory illnesses as when to temper your patient expectations at all? Or has it been pretty usual for the season.
Casey Hoyt: Well, I mean, we- I don’t have the specific number on respiratory illnesses. It’s not something that we watch on a daily basis, but you’re seeing our bit growth in terms of total VIP patients that we were just talking about on the rise. So we’re optimistic that there’s plenty of patients out there for 2024. It’s just a matter of getting our people trained and up and running and producing in an efficient manner, which is what the restructuring is focused on.
