What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-07 compared with 2021-03-03 · 29 added, 19 removed, 278 unchanged (15% of the section changed)

6 unchanged sentences

Viemed's services include respiratory disease management, neuromuscular care, in-home sleep testing and sleep apnea treatment, oxygen therapy, and respiratory equipment rentals.

We hold a 49% equity interest in Solvet Services, LLC, an unconsolidated joint venture which provides health care support to state and federal governments.

We also hold an approximate 5% equity interest in VeruStat, Inc, a company focusing on remote patient monitoring (“RPM”).

The investment is part of an ongoing initiative to enable our salesforce to offer a new revenue source to its nationwide physician network.

RPM platforms allow physicians to bill for in-home monitoring of patients that are struggling with chronic diseases.

The VeruStat RPM solution can be placed in the home in conjunction with Viemed’s existing patient engagement platform (“Engage”).

During 2021, we formed Viemed Healthcare Staffing LLC, a healthcare staffing division.

The underlying recruiting platform is expected to support internal resource fulfillment as well as external, contractual placement of allied health and nursing professionals.

Viemed expects to use an organic growth model whereby expansion is effectuated through existing service areas as well as in new regions through a cost efficient launch that reduces location expenses.

8 unchanged sentences

Corporate History and Background

Viemed’s business, which has been operating since 2006, was acquired by Protech Home Medical Corp., a corporation formerly known as Patient Home Monitoring Corp.

Viemed’s business, which has been operating since 2006, was acquired by Quipt Home Medical Corp., a corporation formerly known as Patient Home Monitoring Corp.

(“PHM”), in June 2015.

2 unchanged sentences

Corporate Information

The common shares of Viemed trade in Canada on the Toronto Stock Exchange (the "TSX") under the trading symbol “VMD.TO” and trade in the United States on the Nasdaq Capital Market under the trading symbol "VMD".

The common shares of Viemed trade in the United States on the Nasdaq Capital Market under the trading symbol "VMD" and trade in Canada on the Toronto Stock Exchange (the "TSX") under the trading symbol “VMD.TO”.

Viemed’s registered and records office is located at Suite 2800, Park Place, 666 Burrard Street, Vancouver, British Columbia V6C 2Z7 Canada and its principal executive office is located at 625 E.

Kaliste Saloom Road, Lafayette, Louisiana 70508.

Viemed’s website is www.viemed.com.

Information contained on our website is not part of this Annual Report on Form 10-K.

Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are available free of charge through our website (www.viemed.com) as soon as reasonably practicable after we electronically file the material with, or furnish it to, the Securities and Exchange Commission.

These reports and other information

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

are also available, free of charge, at www.sec.gov.

Information contained on any website referred to in this Annual Report on Form 10-K is not part of this Annual Report on Form 10-K.

Products and Services

4 unchanged sentences

Viemed provides home medical equipment through the following service programs:

◦ Respiratory disease management , including treatment of Chronic Obstructive Pulmonary Disease (“COPD”), aims to improve quality of life and reduce hospital readmissions by using proven methodology and leading technologies, such as non-invasive ventilation (“NIV”) and other therapies.

Viemed provides ventilation (both invasive and non-invasive), Positive Airway Pressure (“PAP”), and related equipment and supplies to patients suffering from COPD through a high-touch model.

Viemed provides ventilation (both invasive and non-invasive) and related equipment and supplies to patients suffering from COPD through a high-touch model.

◦ Neuromuscular care is focused on helping neuromuscular patients breathe more comfortably while living an active, healthier life and uses respiratory therapy treatments which can lessen the effort required to breathe.

1 unchanged sentence

Oxygen therapy may be performed in the home or in another setting.

◦ Sleep apnea management provides related solutions and/or equipment such as the AutoPAP (automatic continuous positive airway pressure) and BiPAP machines.

◦ Sleep apnea management provides related solutions and/or equipment such as Positive Airway Pressure (“PAP”), the AutoPAP (automatic continuous positive airway pressure), and BiPAP machines.

• In-home sleep testing :

1 unchanged sentence

These services represented 1.9% and 1.4%, respectively, of Viemed’s 2021 and 2020 traditional revenue, excluding COVID-19 response sales and services.

Monthly rental revenue from ventilators and the sale of associated supplies represented approximately 88% and 92%, respectively, of Viemed's 2020 and 2019 traditional revenue, excluding COVID-19 response sales and services.

Monthly rental revenue from ventilators represented approximately 77% and 81%, respectively, of Viemed's 2021 and 2020 traditional revenue, excluding COVID-19 response sales and services.

While Viemed plans to continue investigating and introducing new complimentary products and services and further expanding the coverage of existing products, home ventilation (both invasive and non-invasive) is expected to continue to represent the substantial majority of Viemed’s revenue.

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William Frazier, is a board certified pulmonary disease specialist.

Viemed sources hardware from vendors such as Respironics (an affiliate of Philips NV) and Resmed and pairs them with industry leading respiratory therapy.

There are few manufacturers of equipment that can be used for home treatment of patients with ventilation respiratory therapy.

Viemed sources hardware from vendors and pairs them with industry leading respiratory therapy.

The emerging nature of the market presents risks that vendors may not be able to provide equipment to satisfy demand.

Viemed has historically financed certain capital expenditures through a financing company affiliated with its primary vendors, but also has a line of credit of up to $10.0 million pursuant to a loan agreement with an expiration date of May 1, 2023.

Amounts borrowed under the loan agreement will bear interest at a rate based on the WSJ prime rate plus a margin of 0.50%, with a 3.50% interest rate floor and will be secured by substantially all of Viemed's assets.

While Viemed currently has no immediate plans to draw on this facility, the line of credit allows flexibility in funding future operations.

Viemed has historically funded patient related capital expenditures through cash generated from operations or financing through an affiliate of its primary vendors.

Additionally, Viemed patient related capital expenditures can be financed through an existing line of credit of up to $10.0 million pursuant to a loan agreement with an expiration date of May 1, 2023.

Amounts borrowed under the loan agreement will bear interest at a rate based on the WSJ prime rate plus a margin of 0.50%, with a 3.50% interest rate floor and will be secured by

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

substantially all of Viemed's assets.

While Viemed currently has no immediate plans to draw on this facility, the line of credit allows flexibility in funding future operations.

Government Regulation

14 unchanged sentences

Our Medicare accreditation must be renewed every three years through passage of an on-site inspection.

We last renewed our accreditation with Medicare in April 2018.

We last renewed our accreditation with Medicare in August 2021.

Maintaining our accreditation and Medicare enrollment requires that we comply with numerous business and customer support standards.

10 unchanged sentences

DME MACs continue to conduct extensive pre-payment and post-payment reviews across the DME industry and have determined a wide range of error rates.

For example, error rates for continuous positive airway pressure claims have ranged from 50% to 80%.

DME MACs have repeatedly cited medical necessity documentation insufficiencies as the primary reason for claim denials.

For example, error rates for continuous positive airway pressure claims are estimated to be in between 24.9% to 36.7% based on the 2021 Medicare Fee-for-Service Improper Payment Data.

DME MACs have repeatedly cited documentation insufficiencies as the primary reason for claim denials.

If these or other burdensome positions are generally adopted by auditors, DME MACs, other contractors or CMS in administering the Medicare program, we would have the right to challenge these positions as being contrary to law.

6 unchanged sentences

If CMS requires prior authorization requirements for noninvasive home ventilation, it could materially impact our business.

Competitive Bidding Process

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 required the Secretary of Health and Human Services ("HHS") to establish and implement programs under which competitive acquisition areas are established throughout the United States for purposes of awarding contracts for the furnishing of competitively priced items of durable medical equipment.

VIEMED HEALTHCARE, INC.

2 unchanged sentences

December 31, 2021 and 2020

Competitive Bidding Process

CMS conducts a competition for each competitive acquisition area under which providers submit bids to supply certain covered items of DME.

140 unchanged sentences

While the NCD for the DME Reference List has been updated, no separate NCD has been issued for ventilators.

Monthly rental revenue from ventilators and the sale of associated supplies represented approximately 88% and 92%, respectively, of traditional revenue, excluding COVID-19 response sales and services, for 2020 and 2019.

Monthly rental revenue from ventilators represented approximately 77% and 81%, respectively, of traditional revenue, excluding COVID-19 response sales and services, for 2021 and 2020.

Medicare Administrative Contractors responsible for processing durable medical equipment claims have issued LCDs for Respiratory Assist Devices (“RADs”) which contain language describing an overlap in conditions used to determine coverage for RADs and ventilator devices.

39 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business