Respiri increases patient enrolments, revenue and conversion rates with streamlined onboarding system

Healthcare company Respiri (ASX: RSH) delivered strong growth in patient enrolments during the three months to the end of September across its chronic care management, remote patient monitoring, principal care management and transitional care management programs.

A total of 2,435 individuals joined the programs, representing a 71% increase on the June quarter, attributed to a more streamlined patient recruitment and onboarding system.

The roll-out was fully executed in early September, resulting in a significant increase in the potential volume of patient contacts to 1,000 per week.

Improved onboarding

The new model is expected to deliver higher onboarding rates throughout the coming quarter and is readily scalable to meet anticipated demand of more than 2,000 contacts per week in early 2025.

Respiri currently has 8,000 patients waiting to be enrolled across all programs.

The new process is already having an effect, with conversion rates reaching 35% by month-end compared to the forecast 30%.

RPM agreements

In September, Respiri entered into remote patient monitoring (RPM) agreements with Liliha and The Care Centre of Honolulu skilled nursing facilities (SNF) in Hawaii to ensure continuity of care is maintained once patients are discharged to the home environment.

There are 42 SNFs in the state discharging approximately 5,000 patients every year—all with similar management requirements.

The SNF programs are clinic-in-cloud solutions designed to further streamline patient onboarding and engagement and improve monthly revenues from a forecast US$100 per patient to around US$220.

Ceras partnership

Respiri also partnered with healthcare technology organisation Ceras to deliver remote services to patients within Massachusetts-based healthcare system Covenant Health.

The three-year deal will combine Respiri’s onboarding and clinical team with the Ceras clinical monitoring platform to recruit 750 patients and generate US$720,000 in annualised revenues at a rate of around US$80 per patient per month.

Given that Respiri has the capacity to onboard 300 new patients a week using a proven model that can be easily scaled, the Covenant contract is expected to be an immediate and significant revenue contributor to monthly profitability by year-end.

Key achievements

During the quarter, Respiri-led programs were shown to meaningfully reduce healthcare events, which are likely to lead to reductions in healthcare costs for insurers.

Key achievements included a 56% reduction in rehospitalisations, a 42% reduction in the duration of hospital stays, a 47% reduction in emergency room visits and a 91% improvement in medication compliance.

The cost of hospitalisation is a primary concern for clients on risk-share or value-based agreements with insurers.

Respiri is currently in advanced discussions with four major insurers and the reduced healthcare event data are believed to have been well received by these clients.

Financial highlights

Respiri reported revenues of $409,000 for the period, representing a 93% increase over the June quarter, with customer receipts totalling $242,000.

Enhanced patient recruitment and onboarding procedures, along with an increased healthcare organisation client portfolio, resulted in significant revenue increases for the quarter, peaking in September at $211,000.

Cash outflows of $2.42 million increased by $690,000 compared to the previous quarter, while research and development expenditure rose by $80,000 to $230,000.

Product and manufacturing costs of $140,000 also increased by $90,000 compared to the three months to the end of June.

Respiri closed the quarter with $1.2m in cash and cash equivalents and $2.7m in finished goods inventory and prepaid materials.