InfuSystem Holdings, Inc (NYSE: INFU)

InfuSystem Holdings, Inc. (INFU), a Delaware corporation, is a leading national healthcare service provider in the Durable Medical Equipment (DME) industry. The company operates through its subsidiary InfuSystem, Inc., facilitating outpatient care for DME manufacturers and healthcare providers. InfuSystem's services extend to hospitals, oncology practices, ambulatory surgery centers, and other alternate site healthcare providers.

InfuSystem's primary business activities involve providing essential products and services to support outpatient care. These activities are divided into two main segments: Patient Services and Device Solutions. The Patient Services segment offers a range of services, including the rental and sale of electronic ambulatory infusion pumps, treatment-related consumables, and biomedical recertification, maintenance, and repair services. This segment also provides pain management services via electronic ambulatory infusion pumps for post-operative pain management. On the other hand, the Device Solutions segment sells or rents new and pre-owned pole-mounted and ambulatory infusion pumps, and offers biomedical recertification, maintenance, and repair services for oncology practices and other healthcare settings.

The company generates revenue predominantly from the rental and sale of electronic ambulatory infusion pumps, treatment-related consumables, and maintenance, recertification, and repair services. InfuSystem's primary products include a variety of electronic ambulatory infusion pumps, treatment-related consumables, and biomedical recertification, maintenance, and repair services. These products are designed to cater to the specific needs of hospitals, oncology practices, ambulatory surgery centers, and other alternate site healthcare providers.

In the highly competitive DME market, InfuSystem competes with national, regional, and hospital-owned DME providers and service companies, physician providers, and home care infusion providers. The company's competitive advantages stem from its longstanding participation and strong reputation in the DME space, its well-established relationships with DME manufacturers and healthcare provider customers, and the high levels of service it provides.

InfuSystem's customer base includes a wide range of healthcare providers, such as hospitals, oncology practices, ambulatory surgery centers, and other alternate site healthcare providers. The company has a significant presence in the market, with contracts with nearly 820 third-party payer networks, an increase of 3% over the prior year period. InfuSystem's revenue is well-diversified, with no single payer or customer representing more than 10% of net revenue in 2023, 2022, or 2021.

In terms of employees, InfuSystem had 516 employees as of December 31, 2023, including 499 full-time employees and 17 part-time or contract employees. The company's employees are not unionized. InfuSystem purchases a wide variety of pumps and associated equipment, as well as disposables and ancillary supplies, from a range of suppliers, including Smiths Medical, Inc., a division of ICU Medical, Inc.

In compliance with applicable environmental laws, InfuSystem is required to comply with federal, state, and local environmental laws regulating the disposal of cleaning agents used in the process of cleaning medical equipment, as well as the disposal of sharps and blood products used in connection with the pumps and medical equipment.