AdaptHealth (NASDAQ:AHCO) executives outlined the company’s second-quarter performance, portfolio changes and plans to focus capital on sleep, respiratory and home medical equipment businesses during a Canaccord conference discussion. Foster said the diabetes operation represented about $600 million of business and had initially been stabilized after facing declining growth and operational issues. The remaining amount is expected to be addressed through growth and tuck-in acquisitions in the company’s sleep and respiratory businesses during the second year. Growth and West Coast Contract ChallengesFoster said the base business performed well in the second quarter, with 16% top-line growth. Looking ahead, Foster said AdaptHealth’s capital-allocation priorities are continued organic growth in sleep, respiratory and related home medical equipment; debt reduction to a 2.5-times leverage target; and tuck-in acquisitions focused on sleep and respiratory geographies.