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Be the first with the news that moves the market- Protech Home Medical has just received C$1.5 million from the CARES act to build capacity to fight COVID-19
- The Centre for Medicare and Medicaid Services has freed up regulations around home ventilator use, which accounts for 17 per cent of Protech’s business
- The company expects demands to grow aggressively during the ongoing pandemic
- The company has qualified as an essential service in the US, and will continue operations during the pandemic
- Protech Home Medical (TSXV: PTQ) is up 14 per cent, and trading for $0.73 per share, with a $61 million market cap
Protech Home Medical (TSXV:PTQ) has posted a COVID-19 update, announcing that it expects demand to “grow aggressively” during the pandemic.
The Ohio-based healthcare services business provides home delivery and set-up of equipment for chronic medical conditions.
The company operates out of 42 locations in 10 states, and has some 80,000 active patients with 17,000 referring physicians.
Protech has received C$1.5 million through the CARES act provider relief fund, to support healthcare providers fighting the COVID-19 pandemic.
These payments (not loans) to healthcare providers are conditional on use for preparation, prevention, and response to the pandemic.
Protech plans to use these funds to procure additional equipment and products to prepare and respond to anticipated COVID-related demand.
The Centres for Medicare and Medicaid Services has also removed non-invasive ventilators from the 2021 competitive bidding program. This should allow for greater patient access to at-home ventilator therapy.
This segment accounts for 17 per cent of Protech’s business already. As such, the company stated that it expects this segment to “grow aggressively.”
Protech CEO, Greg Crawford, said that the company has settled into “the new normal” of COVID-19 affected operations.
“Our business has been deemed essential by the US Government and we continue full operations during this pandemic.
“Since then, we have seen an uptick in demand for our at-home services. In particular, the expedited initiative by the medical community to free up hospital beds by sending non-critical patients home has accelerated physician referrals in most segments of the business.
“We are also pleased that the supply chain for our critical equipment continues to remain effective. We continue to opportunistically build inventory to meet increases in demand, particularly for ventilators and home oxygen equipment,” he said.
Protech Home Medical (TSXV:PTQ) is up 14 per cent, and trading for $0.73 per share at 1:54pm EST.
