Trace Medical Invests in LiViliti to Reshape Respiratory Patient Care

WHITMORE LAKE, MI – December 19, 2025 – Trace Medical, a national leader in advanced respiratory rentals and biomedical services, has announced a significant equity investment in LiViliti Health Products, Inc., a Sarasota-based innovator of accessories for Continuous Positive Airway Pressure (CPAP) therapy. The partnership is poised to create a more integrated patient care experience by combining Trace Medical’s extensive market reach with LiViliti’s specialized portfolio of hygiene and comfort products.

Greg Apostolou, Chief Executive Officer of Trace Medical, described the collaboration as a “natural fit,” stating, “leveraging LiViliti’s suite of health cleaning products and core expertise with Trace Medical’s infrastructure and market reach to collectively improve the patient care management options.” The move signals a strategic effort to address the complete lifecycle of respiratory therapy, moving beyond equipment provision to enhance daily use and long-term compliance.

A Strategic Synergy in a Growing Market

The investment arrives as both the respiratory rental and CPAP accessory markets are experiencing robust growth. The global medical equipment rental market, valued at over $58 billion in 2023, is projected to exceed $97 billion by 2032, driven by rising healthcare costs and a systemic shift toward home-based care. Within this sector, Trace Medical has carved out a leadership position, serving skilled nursing facilities, rehabilitation centers, and hospice providers across the nation.

Simultaneously, the market for CPAP accessories, particularly hygiene products, is expanding at an even faster pace. Valued at approximately $1 billion in 2024, the CPAP cleaner and sanitizer segment is forecast to grow at a compound annual growth rate (CAGR) of over 8%, fueled by increasing patient awareness of the health risks associated with poorly maintained equipment. North America, and the U.S. in particular, dominates this market due to high rates of sleep apnea and advanced healthcare infrastructure.

This partnership strategically positions the two companies at the confluence of these trends. Trace Medical gains access to an innovative, high-growth product category, while LiViliti secures a powerful distribution channel to propel its commercial expansion. “Working in collaboration with Trace Medical, we can accelerate innovation, expand our reach and better serve healthcare systems nationwide,” said Brian Sharpe, Chief Executive Officer of LiViliti.

Beyond the Machine: Elevating Patient Compliance and Comfort

For the millions of individuals relying on CPAP therapy to treat conditions like obstructive sleep apnea, adherence is a persistent challenge. Discomfort from masks, the burden of daily cleaning, and skin irritation are common complaints that lead many to abandon their treatment, undermining health outcomes. This partnership directly targets these critical barriers to compliance.

LiViliti, founded in 2019, has focused its innovation on improving the everyday experience of therapy users. Its product line includes specialized CPAP soaps, antimicrobial tubing, and UV-C sanitizing devices designed to make equipment maintenance simpler, faster, and more effective. By preventing the buildup of germs and mold, these products not only enhance comfort but also reduce the risk of respiratory infections.

By integrating LiViliti’s solutions, Trace Medical can offer a more holistic package that supports patients beyond the initial equipment setup. This aligns with a broader healthcare trend toward patient-centric models that prioritize quality of life and long-term wellness. The goal, as Sharpe noted, is to “deliver more integrated impactful solutions that support clinicians, protect patients, and improve outcomes across care settings.” For clinicians, this could mean higher patient compliance rates and more streamlined management of respiratory care, particularly in the rapidly growing home healthcare segment.

Consolidating a Competitive Landscape

Trace Medical's investment does not occur in a vacuum. It is a calculated move within a dynamic and consolidating home medical equipment (HME) industry. The sector has seen a flurry of mergers, acquisitions, and strategic partnerships as companies race to expand their service offerings and capture market share. This trend was accelerated by the massive 2021 Philips Respironics device recall, which created significant opportunities for competitors and underscored the importance of product quality and integrated care solutions.

Major players like ResMed and AdaptHealth have used strategic acquisitions to bolster their positions, purchasing companies specializing in diagnostics, software, and regional HME services. The Trace-LiViliti partnership mirrors this strategy, creating a vertically integrated offering that differentiates it from competitors who may only offer rental equipment or standalone accessories. By bundling advanced respiratory devices with essential hygiene and comfort products, the partnership can present a more compelling value proposition to large healthcare providers and HME distributors.

“We are pleased with the opportunity to deliver LiViliti’s product solutions to customers across our shared customer base,” said Elliot Campbell, Chief Commercial Officer of Trace Medical. This sentiment was echoed by Jim Gilkison, Vice President of LiViliti, who stated that “Leveraging Trace Medical’s established footprint will propel our commercial expansion to the next level.”

The Path Forward: A Unified Go-to-Market Strategy

With the financial and strategic groundwork laid, the two companies are now focused on execution. A joint go-to-market initiative is scheduled to launch in early 2026, which will align their commercial strategies, messaging, and sales outreach. The primary objective is to leverage Trace Medical’s extensive network of institutional clients to introduce and scale LiViliti’s product portfolio.

This unified approach will likely involve creating bundled packages that pair Trace’s rental ventilators and CPAP machines with LiViliti’s cleaning and comfort kits. Such offerings would provide a turnkey solution for skilled nursing facilities and HME providers, simplifying procurement and ensuring patients receive the necessary tools for successful therapy from day one. The collaboration aims to expand market presence for both entities by delivering enhanced, comprehensive value through this unified commercial approach.