Vitasora Health Limited reported a significant 22% increase in daily clinical billing productivity for the December 2025 quarter, alongside a 17% rise in operating revenue. With new CMS reimbursement policies now in effect, the company anticipates a further 10–20% revenue uplift in 2026.
- 22% increase in daily clinical billing productivity quarter-on-quarter
- Operating revenue rose 17% to A$1.25 million despite fewer billing days
- Active patient programs grew 2% to 22,880
- CMS reimbursement changes expected to boost 2026 revenues by 10–20%
- Net operating cash outflows improved 28% to A$3.5 million, supported by R&D tax refund
Operational Momentum Amid Seasonal Challenges
Vitasora Health Limited has demonstrated robust operational progress in the December 2025 quarter, despite the seasonal slowdown typically associated with the holiday period. The company’s daily clinical billing productivity surged by 22% compared to the September quarter baseline, with the January 2026 run-rate now exceeding that baseline by over 50%. This leap reflects enhancements in platform capabilities, workflow optimisation, and deeper patient engagement, alongside growing patient volumes.
Revenue growth remained strong, with operating revenue climbing 17% quarter-on-quarter to A$1.25 million and more than doubling year-on-year. This was achieved despite fewer effective billing days due to public holidays and seasonal factors, underscoring the scalability of Vitasora’s connected care model.
Patient Programs and Engagement Strategies
The company’s active patient programs increased modestly by 2% to 22,880, driven primarily by new enrolments through the Iris Medical Group and Tampa Family Health Center. Patient retention metrics stabilised with churn rates between 1.0% and 1.5%, aligning with industry best practices for chronic care management. Enrolment conversion rates remain strong at approximately 45%, benefiting from clinician-led consent processes embedded within provider workflows.
Vitasora is actively deploying technology-driven initiatives to further enhance patient contact and enrolment efficiency. These include optimising outbound call identity to align with clinic branding, intelligent call scheduling based on patient availability, pre-contact messaging, and enhanced engagement analytics. Such measures aim to improve patient reachability and sustain enrolment growth.
CMS Reimbursement Changes, A Catalyst for Revenue Growth
Significant changes to the Centers for Medicare & Medicaid Services (CMS) reimbursement codes took effect in January 2026, positively impacting Vitasora’s revenue outlook. The introduction of new remote patient monitoring (RPM) data codes reduces the data measurement requirement from 16 days to as few as two days per month, potentially increasing RPM qualification rates from around 50% to over 90%. Additionally, new RPM patient engagement codes allow billing for previously non-billable clinician interactions.
Reimbursement rates for chronic care management (CCM) and RPM codes have also increased, with Vitasora forecasting a 10–20% uplift in CCM and RPM revenues over 2026, assuming consistent patient engagement and program mix. These changes enhance revenue capture opportunities without adding clinical workload, improving operating leverage as the company scales.
Financial Discipline and Capital Strength
Vitasora’s net operating cash outflows improved by 28% to A$3.5 million, reflecting better cost discipline, the normalisation of prior-period settlements, and receipt of a A$453,000 R&D tax incentive refund. Excluding one-off costs, net cash outflows were A$2.1 million for the quarter, consistent with the previous quarter’s levels.
The company successfully completed an A$11 million funding package, receiving A$4.97 million during the quarter, which bolstered its cash position to A$3.1 million at 31 December 2025. This capital injection supports ongoing U.S. expansion and operational growth initiatives.
Looking Ahead
Entering 2026, Vitasora is positioned with strong operational momentum, multiple growth levers, and favourable regulatory tailwinds. The company is advancing contract negotiations expected to materialise early in the year, which could further accelerate patient program growth and revenue. While the seasonal billing constraints of the past quarter have eased, the company’s focus on technology enhancements and patient engagement strategies will be critical to sustaining its growth trajectory.
Bottom Line?
With CMS reimbursement reforms now in play and operational metrics trending upward, Vitasora’s next quarters will test its ability to convert momentum into sustained profitability.
Questions in the middle?
- How quickly will new CMS reimbursement codes translate into realised revenue gains?
- What impact will ongoing contract negotiations have on patient program growth in 2026?
- Can Vitasora maintain cost discipline while scaling its care management team?