InfuSystem Holdings, Inc. and its consolidated subsidiaries provide infusion pumps and related products and services for patients in the home, oncology clinics, ambulatory surgery centers, and other sites of care from seven locations in the United States (‘U.S.’) and Canada.
The company provides products and services to hospitals, oncology practices and facilities and other alternate site healthcare providers. The company delivers local, field-based customer support; and also operates pump serv...
InfuSystem Holdings, Inc. and its consolidated subsidiaries provide infusion pumps and related products and services for patients in the home, oncology clinics, ambulatory surgery centers, and other sites of care from seven locations in the United States (‘U.S.’) and Canada.
The company provides products and services to hospitals, oncology practices and facilities and other alternate site healthcare providers. The company delivers local, field-based customer support; and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, Massachusetts, Texas and Ontario, Canada.
InfuSystem, Inc. (InfuSystem) is the operating subsidiary of the company. During the year ended December 31, 2023, the company also operated through its wholly-owned subsidiary First Biomedical, Inc., a Kansas Corporation, which merged into InfuSystem on January 1, 2024.
The company’s core service is supplying electronic ambulatory infusion pumps and associated disposable supply kits to oncology clinics, infusion clinics and hospital outpatient chemotherapy clinics to be utilized in the treatment of a variety of cancers, including colorectal cancer, pain management and other disease states. The majority of the company’s pumps are electronic infusion pumps. ICU Medical, Inc. supplied approximately 60% of the ambulatory pumps purchased by the company in 2024. The company has a supply agreement in place with this supplier. The company also supplies Negative Pressure Wound Therapy (NPWT) medical equipment, as well as related disposables and ancillary supplies.
In addition, the company sells or rents new and pre-owned pole-mounted and ambulatory infusion pumps to, and provides biomedical recertification, maintenance and repair services for oncology practices, as well as other alternate site settings including home care and home infusion providers, skilled nursing and acute care facilities, pain centers and others.
The company purchases new and pre-owned pole-mounted and ambulatory infusion pumps from a variety of sources on a non-exclusive basis. The company repairs, refurbishes, and provides biomedical certification for the devices as needed. The pumps are then available for sale, rental or to be used within the company’s ambulatory infusion pump management service.
Business Concept and Strategy
The company is a leading national healthcare service provider, facilitating outpatient care for Durable Medical Equipment manufacturers and healthcare providers. The company provides its products and services to hospitals, oncology practices, ambulatory surgery centers, and other alternate site healthcare providers. The company operates its business from a total of seven locations in the United States (‘U.S.’) and Canada.
The company provides its services under a two-platform model: Patient Services and Device Solutions. During the second quarter of 2023, the company renamed its two operating segments. Prior to that time, the Patient Services segment was known as Integrated Therapy Services and the Device Solutions segment was known as Durable Medical Equipment Services.
The company’s lead platform, Patient Services, provides last-mile solutions for clinic-to-home healthcare where the continuing treatment involves complex Durable Medical Equipment and related services.
The Device Solutions platform compliments the company’s Patient Services platform to enhance growth in existing markets. Device Solutions is strategically oriented with the company's existing relationships with healthcare providers to incrementally capitalize on opportunities related to other services their practices offer or may plan to offer in the future.
The company’s business strategy is focused on driving sustainable growth and innovation aligned with the company’s mission elevate the standard of care patients deserve. The company has developed a unique expertise and service offering that Durable Medical Equipment manufacturers and healthcare providers are using to reduce costs, improve service, and most importantly, provide welcome options for patients who want to continue their healthcare treatments from home. The company has developed an exemplary Patient Services model in oncology and the company can extend this model into other Durable Medical Equipment therapies. The key is the company’s ability to leverage the infrastructure of its existing platforms and incrementally add to capabilities to the company’s existing systems, such as for example, sales, clinical, logistics, revenue cycle management, and biomedical services.
Patient Services provides turnkey solutions designed to be implemented without service disruptions, allowing the company’s healthcare provider customers to focus on practicing medicine. InfuSystem provides the Durable Medical Equipment and treatment consumables, handles order and delivery logistics, provides 24/7 nursing support relating to the provided equipment, assumes responsibility for third-party payer Durable Medical Equipment billing, and handles biomedical services for the Durable Medical Equipment, including inspection, repair, certification and replacement.
Device Solutions are provided as a ‘concierge’ offering, whereby InfuSystem leverages its strong service orientation to provide incremental services to the company’s healthcare provider customers on a direct payer model. Device Solutions include equipment rental and sales, consumable sales, and biomedical support services.
Business Segments
The company operates through two operating segments: Patient Services and Device Solutions.
Patient Services segment
The company’s Patient Services segment’s core purpose is to seek opportunities to grow the company’s business by leveraging its know-how in clinic-to-home healthcare solutions involving Durable Medical Equipment, the company’s logistics and billing capabilities, the company’s growing network of third-party payers under contract, and its clinical and biomedical capabilities. This leverage may take the form of new products or services, strategic alliances, joint ventures or acquisitions. The leading service within the company’s Patient Services segment is supplying electronic ambulatory infusion pumps and associated disposable supply kits to private oncology clinics, infusion clinics and hospital outpatient oncology clinics to be utilized in the treatment of a variety of cancers, including colorectal cancer and other disease states (Oncology Business).
In 2024, the company generated approximately 45% of its total Patient Services segment net revenues from treatments for colorectal cancer and 45% of its Patient Services segment net revenues from treatments for non-colorectal disease states.
The company’s Oncology Business focuses mainly on the continuous infusion of chemotherapy. Continuous infusion of chemotherapy can be described as the gradual administration of a drug via a small, lightweight, portable infusion pump over a prolonged period of time. A cancer patient can receive his or her medicine anywhere from one to 30 days per month depending on the chemotherapy regimen that is most appropriate to that individual’s health status and disease state. This may be followed by periods of rest and then repeated cycles with treatment goals of progression-free disease survival. This drug administration method has replaced intravenous push or bolus administration in specific circumstances.
Additional areas of focus for the company's Patient Services segment are as follows:
Pain Management: Providing its ambulatory pumps, products, and services for pain management in the area of post-surgical continuous peripheral nerve block.
Wound Care: Launched in November 2022, the company established a partnership, SI Healthcare Technologies, LLC (SI Healthcare), with Sanara MedTech Inc. (Sanara). The partnership focuses on delivering a complete wound care solution targeted at improving patient outcomes, lowering the cost of care, and increasing patient and provider satisfaction. The partnership enables InfuSystem to offer innovative products, including negative pressure wound therapy (NPWT) devices and supplies from Cork Medical LLC (Cork) and Genadyne Biotechnologies Inc. and Sanara’s advanced wound care product line to new customers through the jointly controlled entity.
Information Technology-Based Services: The company also plans to continue to capitalize on key new information technology-based services, such as EXPRESS, InfuBus or InfuConnect, Pump Portal, DeviceHub and BlockPain Dashboard.
The company continues to extend its considerable breadth of payer networks under contract as patients move into different insurance coverage plans, including Medicaid and Insurance Marketplace products.
Device Solutions segment
The company's Device Solutions segment’s core service is to: (i) sell or rent new and pre-owned pole-mounted and ambulatory infusion pumps and other Durable Medical Equipment; (ii) sell treatment-related consumables; and (iii) provide biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings, including hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. The company purchases new and pre-owned pole-mounted and ambulatory infusion pumps from a variety of sources on a non-exclusive basis. It repairs, refurbishes, and provides biomedical certification for the devices as needed. The pumps are then available for sale, rental, or to be used within the company's ambulatory infusion pump management service.
The company’s 2021 acquisition of FilAMed, a privately held biomedical services company, has supplemented its existing biomedical recertification, maintenance, and repair services for acute care facilities and other alternate site settings, including home care and home infusion providers, skilled nursing facilities, pain centers, and others. The company’s 2021 acquisition of OB Healthcare Corporation (‘OB Healthcare’), a privately-held biomedical services company further develops and expands InfuSystem’s Device Solutions segment by adding field service capabilities and complements the company’s purchase of FilAMed.
Services
Patient Services Segment
The company's core service within its Patient Services segment is its Oncology Business. After delivering its ambulatory pumps to oncology offices, infusion clinics, and hospital and outpatient chemotherapy clinics, the company then directly bills and collects payment from payers and patients for the use of these pumps. At any given time, the company's pumps are in the possession of these facilities, on a patient, in transit, or in its facilities for cleaning, calibration, and storage as reserves for increased demand.
After a physician determines that a patient is eligible for ambulatory infusion pump therapy, the physician arranges for the patient to receive an infusion pump and provides the necessary chemotherapy drugs. The physician and nursing staff train the patient in the use of the pump and initiate service. The physician bills the payers, which may include Medicare, Medicaid, third-party payer companies, or patients for the physician’s professional services associated with initiating and supervising the infusion pump administration, as well as the supply of drugs. The company directly bills (i) payers, (ii) facilities of its Medicare patients, and (iii) patients for the use of the pump and related disposable supplies. Billing to payers requires coordination with patients and physicians who initiate the service, as physicians’ offices must provide the company with appropriate documentation, (the patient’s insurance information, physician’s order, an acknowledgment of benefits that shows receipt of equipment by the patient, and, in some cases, physician’s progress notes), in order for the company to submit a bill to the payers. The company provides assistance to uninsured patients that cannot afford its pumps via its financial hardship program—a program that usually matches what its physician practices provide, as long as the uninsured patients meet certain criteria.
In addition to providing high quality and convenient care, the company’s business offers significant economic benefits for patients, providers and payers.
The company’s clinical support team employs oncology, pain, Intravenous Certified, and Oncology Certified registered nurses trained on ambulatory infusion pump equipment who staff its 24x7 customer service hotline to address questions that patients may have about their pump treatment, the infusion pumps or other medical or technical questions related to the pumps.
Physicians use the company's services to outsource the capital commitment, pump service, maintenance, and billing and administrative burdens associated with pump ownership. The company's services also allow the doctor to maintain a direct relationship with the patient and to receive professional service fees for setting up the treatment and administering the drugs.
The company provides methods for physician offices to deliver the appropriate paperwork for billing through a number of electronic means, including EXPRESS and InfuConnect, reducing the required effort on the employees of the physician offices.
The company’s services are attractive to payers because such services are generally less expensive than hospitalization or standalone home healthcare.
Also, within Patient Services, the company offers pain management services via electronic ambulatory infusion pumps for post-operative pain management using its pumps along with a numbing agent and a continuous nerve block catheter – continuous peripheral nerve block (“CPNB”). Using CPNB for the management of post-operative pain, which usually lasts two to three days after surgery, can result in reduced pain for the patient, increased satisfaction scores for the surgical center or hospital, and a reduced need for post-operative opioid pain medication. These services include the company's patient care call center interaction, offering support to patients and the review and collection of pain score patient outcome data for outpatient surgery centers using its proprietary BlockPain Dashboard.
Device Solutions Segment
Other services the company offers are classified under its Device Solutions segment and include the rental, sale, or leasing and servicing of pole-mounted and ambulatory infusion pumps to oncology practices, hospitals, and other clinical settings. These pumps are available for daily, weekly, monthly, or annual rental periods. The company also sells treatment consumables that can be used in conjunction with the pumps it sells and rents.
In addition to sales, rental, and leasing services, the company also provides biomedical maintenance, repair, and certification services for the devices it offers, as well as for devices owned by customers but not acquired from the company. The company operates pump service and repair ‘Centers of Excellence’ from all of its locations across the U.S. and Canada and employs a staff of highly trained technicians to provide these services. The company's main Center of Excellence for service is its Lenexa, Kansas facility. In addition to the maintenance and repair services the company performed at these facilities, the company offers similar services that can be performed directly at its customer locations nationwide through its team of field-based and traveling biomedical technicians.
Relationships with Physician Offices
As of December 31, 2024, the company had business relationships with clinical oncologists in approximately 2,100 outpatient oncology clinics.
Material Suppliers
The company supplies a wide variety of pumps and associated equipment, as well as disposables and ancillary supplies. The majority of the company's pumps are electronic infusion pumps. ICU Medical, Inc. supplied approximately 60% of the ambulatory pumps purchased by the company in 2024. The company has a supply agreement in place with this supplier. The company also supplies NPWT medical equipment, as well as related disposables and ancillary supplies.
Significant Customers
As of December 31, 2024, the company had contracts with nearly 835 third-party payer networks. The majority of these contracts generally provide for a term of one year, with automatic one-year renewals, unless the company or the contracted payer elects not to renew. The company also contracts with various other third-party payer organizations, Medicaid, commercial Medicare replacement plans, self-insured plans, facilities of its Medicare patients, and numerous other insurance carriers.
Trademarks
The company has a number of registered trademarks, including Ambulatory Infusion Made Easy, Biomed Made Easy, BlockPain Dashboard, EXPRESSTech, and Infusion Made Easy.
Regulation
The company’s business is subject to various regulations. Specifically, as a registered Medicare supplier of Durable Medical Equipment and related supplies, the company must comply with supplier standards established by CMS regulating Medicare suppliers of Durable Medical Equipment, Prosthetics, Orthotics and Supplies (“DMEPOS Supplier Standards”).
The company is also subject to the provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), which are designed to protect the security and confidentiality of certain protected health information. Under HIPAA, the company must provide patients access to certain records and must notify patients of its use of protected health information and patient privacy rights. Moreover, HIPAA sets limits on how the company may use individually identifiable health information and prohibits the use of patient information for marketing purposes. The adoption of the American Recovery and Reinvestment Act of 2009 (“ARRA”) includes a new breach notification requirement that applies to breaches of unsecured health information occurring on or after September 23, 2009. The company is subject to regulations in the various states in which it operates. The company is in material compliance with all such regulations.
History
InfuSystem Holdings, Inc. was founded in 2005. The company was incorporated in 2005.
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