Welcome to the Q3 Fiscal Year 2020 ResMed Earnings Conference Call. My name is Diego, and I will be your operator for today's call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. Please note that this conference is being recorded.
I will now turn the call over to Amy Wakeham, Vice President of Investor Relations and Corporate Communications. Thank you. Amy, you may begin.
Great. Thank you, Diego. Good afternoon and good morning, everyone. Welcome to ResMed's Q3 fiscal year 2020 earnings call. We appreciate you joining us, and I hope you all remain healthy and safe during these times.
This call is being webcast live, and the replay along with a copy of the earnings press release and our updated investor presentation will be available on the Investor Relations section of our corporate website later today. Joining me on the call today to discuss our quarterly results from various remote locations across San Diego and Sydney our CEO, Mick Farrell and CFO, Brett Sandercock as well as other members of management who will be available during the Q and A portion of our call. During today's call, we will discuss several non GAAP measures. For a reconciliation of these measures, please review the notes to today's earnings press release. And as a reminder, our discussion today may include forward looking statements, including but not limited to expectations about ResMed's future performance.
We believe these statements are based on reasonable assumptions. However, our actual results may differ, particularly in light of the highly uncertain global environment we are currently operating in and the effects of the COVID-nineteen coronavirus on our business. You are encouraged to review our SEC filings for a discussion of the risk factors that could cause our actual results to differ materially from any forward looking statements made today. With that, I'd like to go ahead and now turn the call over to Mick.
Thanks, Amy, and thank you all for joining us today. These are unprecedented times, as Amy just noted. We are in the midst of a global pandemic, which is having profound effects on public health, particularly the most vulnerable among us. During this time, our top three goals here at ResMed are simple. Goal 1 is the preservation of life, helping people breathe with world class ResMed ventilators and ventilation masks, while their own immune system fights against this novel coronavirus and the disease it causes, COVID-nineteen.
Goal 2 is the safety and health of our amazing team of 7,500 ResMedians providing solutions in 140 countries worldwide because without our people, we can't help anyone breathe better. And goal 3 is the ongoing delivery of world leading products and services to treat sleep apnea, chronic obstructive pulmonary disease and asthma, as well as the ongoing production of market leading software to take care of over 110,000,000 people with care delivered by home medical equipment providers, skilled nursing facilities, nursing homes, hospice and importantly in the place where people prefer to be their home. I've never been more proud to call myself a ResMedian than I am today. Every one of our global team is fully engaged in the COVID-nineteen crisis. They are demonstrating impressive feats of ingenuity, compassion and drive to support patients, clinicians, providers, health systems and beyond.
My e mail inbox is overflowing daily with stories of ResMed Heroes, including frontline workers such as our own respiratory therapists and clinicians as well as ResMedians who are showing up every day using all of our updated safety procedures to source ventilator components from around the world to produce ventilators and masks and tubing and software and deliver these life changing solutions worldwide. To share just one example from many is the story of a ResMed Hero from our China team, actually in Wuhan in Hebei province, who donned a full hazmat suit every day for the 1st 10 weeks of the corona outbreak in that region. He was setting up thousands of people on ResMed ventilators and ResMed masks, including a ventilator that we call the Guardian Angel or GA ventilator produced right there in China. We don't know how many lives this gentleman saved there in Hubei province, but I have the good fortune of calling him my ResMed teammate. So to all those ResMed heroes, I say thank you and that I'm inspired by you and how you stepped up to help patients at the start of this crisis there in January and for the duration now through April and beyond.
As a global company providing solutions in over 140 countries, we have mobilized our efforts and resources to address COVID-nineteen as this deadly disease moves from region to region. We have accelerated production and distribution of invasive ventilators, non invasive ventilators, including bilevel devices as well as ventilation masks for the patients who need them most, no matter where they live. We produced over 52 1,000 non invasive ventilators, including bio levels and invasive ventilators during the quarter. This is a threefold increase on our production from the same quarter in 2019, living up to the expectations that we set publicly. We have also driven a tenfold increase in our ventilation mask production, actually more than tenfold.
We are aligning distribution of these ventilation products worldwide using a global ethical epidemiology based model of ventilation needs based on our models of the surge of COVID-nineteen patients around the world. And our key guiding principle is the preservation of life. We can and will do more over the coming days, weeks, months and quarters to support health care systems as COVID-nineteen continues to impact countries across Asia, Europe and North America and with future patient surges just starting to begin in South America, Africa, Middle East and beyond. We have been able to achieve these outcomes while ensuring that we always place the health, safety and well-being of our ResMed team at the top of our priority list. Without our people, as I said earlier, we can do nothing.
Our actions have included work from home policies for all whose job function allows for that. We have instituted non contact temperature screening, mask wearing policies and physical distancing protocols for all of our supply chain production, distribution and technical service teams worldwide. While we have around 65% of our global team now working from home, these important jobs such as production, distribution and tech service just can't be done from home. We have established world class safety and quality procedures in all of our manufacturing plants, distribution centers and offices and we're ready to get back to work as cities and countries plan to do that. Safety and quality are part of our DNA at all times.
And today, more than ever, these capabilities enable us here at ResMed to support our customers with a sustainable supply of products, services and solutions throughout this COVID-nineteen crisis and beyond. I also want to express my gratitude and appreciation for the extraordinary efforts of people beyond the boundary of ResMed, especially the frontline healthcare workers in hospitals worldwide. Respiratory therapists, critical care nurses, critical care doctors and many others have demonstrated extraordinary leadership and personal sacrifice at this time. These clinicians are triaging people with symptoms into various therapeutic pathways depending on the changing acuity of each individual with this novel coronavirus. From CPAP therapy to bilevel therapy to more advanced non invasive ventilation as well as to full endotracheal intubation with invasive ventilation for the patients who need that.
These clinicians are using ResMed ventilators and ResMed ventilation masks with direct person to person engagement, which even with full personal protective equipment still includes significant risk for that clinician. We are working with customers worldwide to drive digital pathways to try to minimize unneeded person to person interaction. Examples of this include remote monitoring of ventilation devices, telehealth solutions and virtual patient population management. We have over 11,000,000 devices with available connectivity to our cloud based solutions, including MyAir and AirView, we have over 13,000,000 patients as well as over 6,000,000,000 nights 6,000,000,000 nights of respiratory medical data in the cloud. We had a running start in the field of digital health well before this COVID-nineteen crisis.
One of the few positive benefits out of this awful crisis is that it has brought to the forefront the importance of digital health for the health and safety of respiratory therapists, respiratory nurses and critical care physicians. Digital health also brings benefits of more scalability, more cost efficiency and better outcomes for patients. Throughout the quarter, despite all the changes brought by this coronavirus, we have continued to execute on our long term ResMed 2025 strategy, including digital health, expanding end to end pathways for sleep apnea, for COPD and for asthma as well as building the world's best out of hospital health care software network. Fundamentally, we believe and continue to believe through this crisis even more so that the future of health care is outside the hospital. That's where ResMed competes today and that's where ResMed wins today.
The COVID-nineteen pandemic has proved an interesting point. The more we can establish non contact digital health pathways at scale, the better the health of therapists, nurses and physicians and the better the efficacy, the efficiency, the scale and the quality of care for patients. We have accelerated our ability to improve over 250,000,000 lives in outside the hospital health care by 2025. The fundamentals of our ResMed business are strong even as we see uncertainty in the changing kinetics and dynamics of the COVID-nineteen disease as it continues to move across geographies from Asia to Europe to now North America and on to South America, Africa and regions worldwide. We are seeing tailwinds in our business from increased demand of our ventilators such as Astral, Stellar, Loomis as well as our non invasive ventilators AirCurve, Flexo and the GA.
We are also seeing increased demand for ventilation mask solutions. We do not know exactly how long the surge of demand will last for each hospital, for each city, for each country and for each region as this COVID-nineteen virus moves. But as patient flow surges, peaks and then flattens, we are there. And we are getting pretty good at modeling these demand curves using our global COVID-nineteen epidemiology model of patient flow and the learning from each city that we serve. Currently, a lot of short term impact also depends on our ability to keep ventilator production at its maximum capacity.
And as I mentioned earlier, we are already at 3 times last year's production capacity. And we are doing our best to meet the surge and peak flow in multiple geographies worldwide. A key element is in our ability to deliver is our ability to source critical components and ship product in response to the incredible demand as this COVID-nineteen virus moves around the world. I want to be clear on this point though. Even as we face increased demand for our products, we are doing everything that we can to keep efficiency high and to keep our costs down.
Our primary humanitarian goal is 100 percent locked. At ResMed, we are committed to enabling access to ventilators for COVID-nineteen patients in order to preserve life. We are keeping pricing steady and we will not opportunistically increase prices or per unit profit in our response to COVID-nineteen. We believe that there will be lessons learned during the crisis that will enhance our ability here at ResMed to drive innovation in the coming quarters, coming years through our research and development pipeline, particularly in the fields of digital health technology as well as our product and software innovation. We are very competitively positioned in these fields today, but we think we will be even more so tomorrow.
While balancing our response to the global public health crisis, we have also been executing well in our core business. We have delivered strong growth in our sleep apnea, COPD and asthma businesses across geographies with solid contributions from our Software as a Service business during the quarter. In a few minutes, our CFO, Brett Sandercock, will provide the details of our Q3 financial performance along with our outlook for the remainder of fiscal 2020. But first, I'll provide just a few financial highlights and briefly discuss execution towards our ResMed 2025 strategy along with some milestones for the quarter. So for the Q3 of fiscal year 2020, we delivered just around $770,000,000 in quarterly revenue, which is up 17% year over year, reflecting growth and positive momentum across our product portfolio, software solutions and global markets.
As part of our global COVID-nineteen response, we have seen tailwinds for the increased demand for invasive ventilators and non invasive ventilators, including bilevel devices, masks and accessories, as I mentioned earlier. We estimate the incremental impact to be approximately $35,000,000 of COVID-nineteen related revenue during the quarter. So from this $770,000,000 in quarterly revenue, we generated a strong $240,000,000 in cash flow from operations during the quarter, enabling us to return cash dividends to shareholders as declared by our Board today. We continue to invest in the future growth of our enterprise with double digit increases in our research and development investments during the quarter. This R and D investment includes shifting resources to ventilators and ventilation masks and clinical research and technical help people to help clinicians, physicians, inventors and people worldwide during the COVID-nineteen crisis as well as keeping the ongoing innovation work going for our core sleep apnea, COPD, asthma and software as a service businesses.
We have set a clear path for ResMed to maintain our position as the global leader in digital health technology, transforming the way health care is delivered for those suffering from sleep apnea, COPD and asthma as well as enabling people to live healthier lives in a portfolio of settings away from the hospital. The execution of our long term strategy and third, improving the quality of life for our ultimate customer, the person who uses our products to help them sleep better, breathe better and to live a higher quality of life away from a hospital. We believe that when we help a person sleep better, breathe better and live a better quality of life away from acute care, this positions ResMed to help those people achieve their best health outcome in other chronic disease conditions including cardiovascular disease, diabetes, mental health and beyond. We are forming multiple partnerships to drive these long term health benefits including our joint venture with Verily and many other private partnerships beyond. Watch this space.
We have three priorities that guide our daily focus. Number 1, to grow and differentiate our core sleep apnea, COPD and asthma businesses across global markets. That's just our clear number one priority. Number 2, to deliver world leading medical devices and digital health technology to engage physicians, providers and patients so that together we can improve clinical outcomes, reduce costs and enhance patient experiences. That's our AAA.
And our 3rd priority is to build the world's best software solutions network for health care that is delivered outside the hospital and we're well on track to do that. We have advanced on all three of these priorities during the quarter and I'll briefly touch on a few recent highlights to demonstrate areas where we have momentum and are driving innovation. We had an exceptionally strong growth this quarter on a geographic and product basis, including 17% growth globally. Our team delivered strong and distributed geographic growth, including a 12% increase in the combined United States, Canada and Latin America regions as well as an incredibly strong constant currency increase of 27% across the combined Europe, Asia and other regions. As discussed earlier, there was an impact from the COVID-nineteen surge in demand for ventilation in the quarter of around $35,000,000 in revenue.
So that's around 4.5 percent of the $770,000,000 in revenues for the quarter. In short, our core underlying business remained robust over and above that of the ongoing surge of demand. On a product basis, during the last 12 months, we improved over 16,000,000 lives by providing a person with a ResMed device or a ResMed complete mask system to help them breathe better and live a better life, Including our digital health solutions for out of hospital software in this number, we impacted together over 110,000,000 lives during these last 12 months. The ability to improve these lives is supported by over 6,000,000,000 nights of respiratory medical data in the cloud. These data allow us to perform sophisticated data analytics and to drive actionable insights for the benefit of customers including patients, physicians, providers and healthcare systems.
This makes ResMed the global leader in digital health for our field and the partner of choice for our customers helping them increase efficiency, reduce costs and improve outcomes. So shifting to a discussion of our core sleep apnea business, we are seeing significant impact from the COVID-nineteen related lockdowns on new patient diagnoses in sleep. We have seen double digit declines in diagnosis rates in affected markets. Many sleep clinics, especially hospital clinics are temporarily closed and many pulmonary and critical care physicians that often work in sleep clinics are shifting their focus to treat COVID-nineteen patients as the surge comes to their city, their region, their state, their hospital. It is important to note that we have seen the mask and accessories resupply dimension of our business not only maintained, but actually increased during the quarter.
As we look forward, there is uncertainty and is not clear to what extent the upsurge in ventilation device and ventilation mask revenue will offset the decline in sleep device revenue and whether sleep mask revenue will maintain its growth or decelerate somewhat. But we know these facts: number 1, that sleep apnea prevalence remains incredibly high over 936,000,000 people wide. And we know in fact 2 that there is a backlog of diagnostic activity for sleep apnea and COPD that many clinics and physicians are preparing to ramp up their home sleep apnea testing both now during the crisis and in the future as lockdowns are lifted around the world. For the on premise or in laboratory tests for sleep apnea, we are modeling how those will scale back up again customer by customer, city by city and country by country as the economy opens up and primary care physician visits and elective medical procedures come back online through telehealth and beyond. Physicians and therapists will then have to work through the backlog of undiagnosed patients that has been built through the COVID-nineteen lockdown in their region with a portfolio of both home sleep apnea testing and in lab tests.
The velocity of the diagnostic pathway return rate will depend on local regulations and behaviors and what we're calling a new normal for patient care. We have real time experience of the opening back up in some cities in Asia and throughout Europe and we're starting to see them open up in the U. S. And we have modeled these open ups carefully to ensure that we can best support customers as they start their home sleep apnea test scale and their in lab test scale over time to meet the backlog of demand. Even today, around the world, we're working closely with our customers to accelerate these home sleep apnea testing models and remote patient setup on sleep apnea therapy where customers are pursuing those pathways as well as our ongoing remote sleep apnea patient monitoring.
And I mentioned earlier, we have over 11,000,000 100 percent cloud connectable medical devices out there in the field and more that are distributed every day. It's important to note that these types of partnerships aren't new due to COVID-nineteen. These are things we've been working on for years decades in some states. And we believe these types of digital health and telehealth and remote monitoring models will only increase due to COVID-nineteen and as we move into a post COVID-nineteen world. In terms of digital health innovation, we have recently rolled out a new pilot for telehealth over video chat so that the physician can not only access information on Air Solutions and AirView, but it can also interact directly with the patient.
And we think that will reduce the need for recovered COVID-nineteen patient to return to the emergency room or a physician outpatient setting. We view this as a trend that will be accelerated by a combination of changes in reimbursement methodologies and overall focus on safety and the preventative and health benefits for both the patient and the health care worker. Solutions like this can provide incredible scale when leveraged across a digital health network including over 110,000,000 patient lines. As I noted earlier, our investment in research and development grew by double digits in the quarter and we put these R and D monies to work to expedite the tripling of ventilator production in the quarter and tenfold capacity increase in our ventilation mask production. We have also formed partnerships with clinicians around the world to help with the COVID-nineteen crisis, to help create and share clinical white paper best practice solutions in clinical practice to help with COVID 19 ventilation management including triage between CPAP, oxygen, bilevel therapy, non invasive ventilation therapy and invasive ventilation therapy.
At the same time though, we have continued to invest in our core businesses for future growth in sleep apnea, COPD, asthma and software as a service. As an example of this innovation in our core sleep apnea business, we introduced during the quarter the AirFit F30i. This is the first CPAP mask with a tube up design in the full face category. This product now gives ResMed the most complete full face mask portfolio versus all our competition on the planet. So what does this tube up design of the AirFit F30i do for customers?
In essence, it gives the freedom of movement back to that ultimate customer, the patient, so they can sleep naturally in any position that their slumber architecture follows during the night. The F30i also has an innovative cushion that prevents irritation on the nasal bridge and it has a quick release elbow that allows users quickly disconnect and reattach the mask from its tubing, making it very simple to start therapy at the start of the night and to stop therapy in the morning. All this technology built into the AirFit F30i supports the 3rd tenet of our Triple Aim to improve the quality of life for the patient. If they have freedom of movement and don't wake up that improves their sleep and improves their day and improves their life. Clearly, it is very early in the product life cycle for the F30i F30i and this product was launched amid a pretty unique global environment.
However, despite some of the noise in the signal, we've been able to see good early acceptance as physicians, respiratory therapists and that ultimate customer, the patient, recognize the benefit and functionality of the innovation in the F30i. Additionally, during the quarter, we invested $100,000 in partnership with the not for profit American Thoracic Society Foundation through a research grant. The goal of the research and the study is to look at how remote monitoring can help improve the management of patients with COPD. The study aims to detect early changes in lung function from daily recordings and to notify patients and or physicians when to commence more intensive treatment or to seek high level medical attention. Nearly 400,000,000 people suffer from COPD worldwide and we do not believe these people are well served currently by global health care systems.
Our vision of better management for COPD patients through the use of digital health technologies will be accelerated from the findings of this study. It's great to partner with the non profit ATS Foundation to help this move forward. As we discussed earlier, COVID-nineteen has accelerated the movement to fully remote care in our core sleep apnea and ventilation businesses. Looking at our growing digital health solutions for COPD and asthma, the Propeller platform continues to play an important role in keeping patients outside the hospital, out of acute care locations, leveraging the Propeller's world leading pharmaceutical adherence technology for these diseases. Active use of Propeller technology has actually increased during the COVID-nineteen crisis.
We think this is due to the rising awareness of the importance of respiratory health and the fact that people just don't want to go to acute care settings and so they're using preventative medicines more to do so. While it's not yet material to ResMed's overall revenue, we are seeing increased interest in Propeller's technology to support health systems with population health. We'll keep you updated on any significant Propeller platform for COPD, asthma, as they adopt the Propeller platform for COPD, asthma and beyond. Before I transition to a discussion of our out of hospital software as a service business, I'd like to recap briefly why we believe that the SaaS business is critical to ResMed's long term success and how it fits into our broader portfolio. Our consistent view of the evolution of the health care system is that care will be delivered outside the hospital.
The contamination of hospitals with COVID-nineteen is just one of the latest examples of the types of contagion that are present in many hospital locations worldwide. Our vision is to enable a system where a patient can seamlessly transfer across a portfolio of outside hospital care settings from home care providers to skilled nursing facilities to home health to independent living, assisted senior living and beyond. These settings have reduced costs versus the hospital as well as increased efficiency and better health comes health outcomes than the hospital. People are simply happier and healthier in the residential setting of their choice and the ultimate residence of choice is their home. The SaaS business clearly leverages the global trend for seniors to want to age in place and supports ResMed's continued execution against the AAA.
Our SaaS businesses enable us to participate more deeply in broader chronic disease across a patient's life cycle creating additional strategic growth options. During the quarter, our software as a service business grew at 12% from the period a year ago. We are integrating and optimizing this out of hospital SaaS portfolio to support long term growth. We continue to believe that the long term weighted average growth of the SaaS markets that we serve is in the high single digits. We clearly beat that growth this quarter and we plan to exceed that rate in the long run as we execute to our SaaS strategy.
During the COVID-nineteen crisis, many out of hospital health care settings have switched their use to support overflow from hospitals. And there has also been a reduction in patient flow to these out of hospital facilities due to a reduction in elective surgeries at hospitals. Skilled nursing facilities and nursing home volumes have been extremely hard hit by COVID-nineteen and this will impact our MatrixCare business growth in the coming quarters. We expect market growth in our current portfolio of SaaS businesses that we serve to be in the mid single digit range for the next few quarters before its recovery to high single digit growth in the medium to long term as the COVID-nineteen surge passes and people return to their primary care physicians and return to their elective surgeries and patient volume returns. In support of the increased growth of the SaaS portfolio, during the Q3, we completed the acquisition of a company called Snapworks.
Snapworks provides patient contact management and will follow optimization for sleep apnea resupply for our HME customers. The combination of Brightree's technology and LiveCall services with this new Snapworks tech creates the largest resupply base in the industry with end to end workflow automation for HME customers. Resupply is an area of the HME business that has been a strong ballast in the boat during the COVID-nineteen lockdowns. And these types of programs including Brightree and Snapworks together set up our customers for ongoing success and better patient engagement through the crisis and beyond. In summary, the SaaS portfolio is an important driver of our long term success and a critical enabler of our ability to impact our Triple Aim.
We are investing for long term growth in SaaS and leadership in this space. Our performance across the entire ResMed portfolio during the quarter demonstrates the resiliency of our business during what I would call extremely challenging global times And it highlights the dedications of rasmedians all over the world and the dedication of our customers, the clinicians, providers and health systems to deliver for the people who need our help. Looking forward, we are modeling impacts of headwinds and tailwinds from the COVID-nineteen crisis with detailed scenarios of impacts by customer, by city, by region and by business line. While we face temporary headwinds in sleep apnea diagnosis and SaaS patient business flows I just talked about, we're also seeing tailwinds from increased demand for our ventilation devices, our ventilation masks around the world. The fundamentals of our overall business is strong, but these are uncertain times and the crisis continues to unfold across geographies.
We don't know exactly how long the related headwinds and the related tailwinds will last. We don't know specifically by each city, country and region how fast they will open up, but we know they will open up. And as we seen in Asia and Europe, as these economies open up over the coming days, weeks and months, ResMed will be there to serve them. And we know one thing that as they start to open up, there has been and will be a backlog of patients who need the channel's help for sleep apnea, COPD, asthma and out of hospital health care needs. We're investing now to be ready for those realities of the open up so that we can be there to support our customers with the best digital health solutions and the most scalable solutions to help them grow now.
We are leading from the front. The nature of the COVID-nineteen crisis has highlighted the importance of our digital health strategies I mentioned earlier. Our ability to improve over 250,000,000 lives by 2025 in out of hospital healthcare is not only on track, we think it's accelerated these last 3 months. This is the one welcome benefit in what has been an incredibly challenging 90 days for every company, not just ResMed and every nation, every government dealing with this crisis. We're glad that we have made extensive investments in remote monitoring, remote patient setup, digital health, population health management over the last 5, 10 plus years that we can now offer and bring to the market to help them when they need it.
The combination of accelerated digital health technology and the recognition of the value of remote monitoring and the projected changes that are already happening in global reimbursement models for digital health combined with the growing acceptance of virtual diagnosis and virtual setup represents a new and significant medium to long term tailwind for the ResMed business. This combined with our strong pipeline of new products and digital health solutions including sleep apnea, COPD, asthma and the out of hospital SaaS gives us strong confidence in our future. We think this is unique positioning that solidifies our leadership role in global digital health in medtech, but will also support ResMed's growth over the medium to long term. Before I hand the call over to Brett for his remarks, I'd like to commit that while we have already played a significant role providing tens of thousands of ventilators, many, many more ventilation masks and clinical support to clinicians worldwide to fight the COVID-nineteen crisis, we are not done. We will do even more in the coming quarter and the coming quarters to deliver more ventilators, more ventilation masks for countries as they go through the patient search and we will be there to support healthcare systems around the world in respiratory medicine and digital health.
Not only during this COVID-nineteen crisis, but in what we call the new normal post COVID-nineteen world that will be more digitally enabled and more digitally connected than ever before. With that, I'll turn the call over to Brett in Sydney. Brett?
Right. Thanks, Mick. In my remarks today, I'll provide an overview of our results for the Q3 of fiscal year 2020 and some remarks for our Q4 outlook. As Mick noted, we had a strong quarter. Group revenue for the March quarter was $769,000,000 an increase of 16% over the prior year quarter.
In constant currency terms, revenue increased by 17% compared to the prior year quarter. Revenues for the Q3 were favorably impacted by significant sales of ventilated devices and accessories. We estimate that the incremental revenue benefit from COVID-nineteen related sales was in the order of 35,000,000 dollars Excluding this incremental impact, our group revenue increased by 12% in constant currency terms. Taking a closer look at geographic distribution and excluding revenue from our Software as a Service business, Our sales in U. S, Canada and Latin America countries were $394,000,000 an increase of 12% over the prior year quarter.
Sales in Europe, Asia and other markets totaled $286,000,000 an increase of 23% over the prior year quarter or in constant currency terms a 27% increase. By product segment, U. S, Canada and Latin America device sales were $196,000,000 an increase of 8% over the prior year quarter. Masks and other sales were $197,000,000 an increase of 17% over the prior year quarter. In Europe, Asia and other markets, device sales totaled $195,000,000 an increase of 26% over the prior year quarter or in constant currency terms a 29% increase.
Masks and other sales in Europe, Asia and other markets were $91,000,000 an increase of 18% over the prior year quarter, were in constant currency terms a 22% increase. Globally in constant currency terms, both device sales and mask and other sales increased by 18% over the prior year quarter. Software as a Service revenue for the Q3 was $90,000,000 an increase of 12% over the prior year quarter. On a non GAAP basis, SaaS revenue increased by 9%. During my commentary today, I will be referring to non GAAP numbers.
The non GAAP measures adjust for the impact of amortization of acquired intangibles, the purchase accounting fair value adjustment to MatrixCare deferred revenue and impairment of minority interest investments. We have provided a full reconciliation of the non GAAP to GAAP numbers in our 3rd quarter earnings press release. Our non GAAP gross margin improved by 70 basis points to 60% in the March quarter compared to 59.3% in the same quarter last year. The increase is predominantly attributable to favorable product mix and manufacturing efficiencies, partially offset by typical declines in average selling prices. Moving to operating expenses.
Our SG and A expenses for the Q3 were $172,000,000 an increase of 5% over the prior year quarter. In constant currency terms, SG and A expenses increased by 7% compared to the prior year period. SG and A expenses as a percentage of revenue improved to 22.4% compared to 24.8% reported in the prior year quarter. Given the volatility in potential future revenue outcomes, I will not provide our normal guidance with respect to SG and A as a percentage of revenue. However, looking forward, we expect SG and A expenses to increase in the low single digits compared to the year ago period.
R and D expenses for the quarter were $51,000,000 an increase of 8% over the prior year quarter or on a constant currency basis an increase of 11%. R and D expenses as a percentage of revenue was 6.7% compared to 7.2% in the prior year. We continue to invest in our business, particularly targeted at innovation. This is evidenced by the double digit growth in R and D expenses in Q3. We believe our long term commitment to innovation will deliver a sustained competitive advantage.
Looking forward, we expect R and D expenses to continue to grow in the high single digits to low double digits, reflecting our commitment to innovation through the economic cycles. Total amortization of acquired intangibles was $20,000,000 for the quarter, a decrease of 10% over the prior year quarter reflecting historical intangible assets becoming fully amortized during the quarter. Stock based compensation expense for the quarter was 14,000,000 dollars Non GAAP operating profit for the quarter was $238,000,000 an increase of 31% over the prior year quarter, reflecting strong top line growth, expansion of gross margin and well managed operating expenses. Excluding the benefit from COVID-nineteen impacts, we still continue to experience solid operating leverage. Non GAAP net income for the quarter was 188,000,000 dollars an increase of 47% over the prior year quarter.
On a GAAP basis, our effective tax rate for the March quarter was 14.9%, while on a non GAAP basis, our effective tax rate for the quarter was 15.1%. Looking forward, we estimate our effective tax rate for the Q4 fiscal year 2021 will be in the range of 18% to 20%. Non GAAP diluted earnings per share for the quarter were $1.29 an increase of 45% over the prior year quarter. Excluding the benefit from COVID-nineteen impacts, we estimate our diluted earnings per share were $1.16 an increase of 30% over the prior year quarter. Our GAAP diluted earnings per share for the quarter was $1.12 Additionally, during the quarter, we recognized write downs of $9,000,000 associated with minority equity investments.
Cash flow from operations for the 3rd quarter was $240,000,000 reflecting robust underlying earnings management. Capital expenditure for the quarter was $30,000,000 depreciation and amortization for the March quarter totaled $46,000,000 dollars During the quarter, we paid dividends of $56,000,000 During the quarter, we also completed the acquisition of our previously announced tuck in acquisition of Snapworks. The acquisition will be non GAAP EPS neutral in year 1 and is expected to be accretive to non GAAP EPS in year 2. However, overall, the impact will not be material to group earnings. We recorded equity losses of $5,000,000 in our income statement in the March quarter associated with the Fairley joint venture.
We expect to record an underlying run rate of approximately $5,000,000 of equity losses each quarter through fiscal year 2021 associated with the joint venture operations. Given the unprecedented nature of current events, I would like to make some comments on health. Strong balance sheet has always been a hallmark of ResMed and is most valued by investors in times of economic uncertainty. We ended the Q3 with a cash balance of $353,000,000 having generated $240,000,000 in operating cash flow during the Q3 $472,000,000 in the 1st 9 months of our fiscal year 2020. As of March 31, we have $1,400,000,000 in gross debt and $1,000,000,000 in net debt.
We had total assets of $4,500,000,000 Our debt levels remain modest and at March 31, we had a further 895,000,000 dollars available for drawdown under our existing revolver facility. In summary, our liquidity position is strong. However, I also want to highlight that in these times of uncertainty, we are maintaining a disciplined approach and we are tightly managing expenses, cash flow and liquidity. Today, our Board of Directors declared a quarterly dividend of $0.39 per share. Dividends are important to many of our shareholders and the declaration of our dividend reflects the Board's confidence in our strong liquidity position and operating performance.
Turning to our 4th outlook, at a high level, we expect to see continued strong growth in our Respiratory Care business and expect incremental Respiratory Care revenue to significantly exceed Q3. However, we expect to see a headwind in sleep device sales in Q4 in response to a temporary reduction in the diagnosis of new patients. Mask and accessories have shown resiliency over the past 3 months, which reflects the insulating value of the large patient installed base. Like many other companies, we are experiencing high uncertainty in the current environment with circumstances and information changing almost on a daily basis. As a result, our forecast and possible future revenue outcomes remain dynamic.
And with that, I'll hand the call back to Amy.
Great. Thanks, Brett. Thanks, Mick. We'll now turn to the Q and A portion of the call. I would like to remind everyone to please limit yourself to one question.
And if you have additional questions, please feel free to return to the call queue. Diego, we're now ready for the Q and A portion.
Thank you. We will now begin the question and answer session. Your next question comes from Leanne Harrison with Bank of America. Please state your question.
Hi, good morning all and congratulations on a great result. I'm very interested in, I guess, uplift that you're getting on ventilators. You mentioned you got a €35,000,000 tailwind for this quarter due to a meaningful increase in devices production at 104% later at March. Of production for Zendomavos and FASK as you go through quarter 4? Can you meet any increase in demand coming from other other countries?
Thanks, Leanne. Thanks for the question. And yes, you're right. We had 2 separate metrics that we sort of laid out there. One that we sold an extra $35,000,000 worth of ventilator in the quarter.
Those were from our inventory and stuff that we produced in Q2 and somewhat in Q3. And so that was a $35,000,000 tailwind for our business and we expect some of that certainly to continue as the surge continues worldwide into Q4. And then in addition to that, we tripled our production from a year ago and we made over 52,000 non invasive ventilators, bilevel devices and invasive ventilators. So your question of can we continue and or increase the production capacity and the answer is absolutely yes. We are constrained on some key components for the invasive ventilators.
So the Astral and Stellar have some significant constraints in the components that go into those invasive ventilators. So the Astral and Stellar type products. Well, Astral is an invasive ventilator. Stellar is actually a non invasive ventilator. But we really don't have significant constraints to the Loomis STA other than some components around the alarms module and the extra components and the AirCurve ST.
So those non invasive ventilators can scale to 5x or 10x and we can really scale to whatever the demand is. And so then it comes down to our ability to predict hospital by hospital, customer by customer what those surges in demand are going to be as the virus moves around the world and to make sure that ResMed is there getting an order and making sure we can deliver those invasive ventilators, but really importantly those non invasive ventilators and alternative therapies that are also used in the different levels of acuity for a patient with COVID-nineteen. So the answer in short is absolutely. We did all we could and we tripled production in the quarter and we are looking to do that and more in Q4 to deliver for the needs that continue worldwide.
Okay. So just to clarify, do you think you might need to
I've got to say Lianne the audio wasn't fantastic during that, but I think I heard you say that how would we or how fast would we move from the sort of 3x increases to a 5x or 10x on AirCurve ST. That's going to be dependent upon our modeling of the different surges that happen city by city and country by country. And clearly, the masks are used far more rapidly because they are changed over pretty regularly certainly patient to patient, but often day to day with these non vented ventilation masks. And so we expect the surge to continue and us to continue to be able to produce throughout Q4 and beyond for the needs as this goes as this virus goes around the world and continues to expand.
Sorry, my question was about how much can you increase the dendolino mass production
Yes. I've got to say I can't hear you. I think I heard you say, can we increase the ventilation mask production. We've increased it tenfold and we'll continue to do so. I think we should go to the next question.
Sorry, Leanne.
Our next question comes from Suraj Kalia with Northland Securities. Please state your question. Good afternoon, everyone. Hope everyone is safe and healthy. Mick, just one from my side, and forgive me if you all mentioned this.
Can you all help characterize your investment in Nexo? How you all are thinking about the neuromod market specifically for sleep apnea? What is the construct of ResMed's investment? That would be greatly appreciated. Thank you for taking my question.
Thanks, Suraj. It's a great question. And as you know, you followed our stock for a long time, we look at a portfolio of investments to treat sleep apnea. And around 10 years ago, we actually invested in the 3 d printing of a sleep apnea dental device called Narvaal and that's now a great part of our portfolio and treats a great number of patients in France and across Northern Europe. The neurostimulation market is an interesting one.
Nixoia we think is a leader in that space and we decided to make a minority equity investment in them. I will actually hand over to Jim Hollingshead, who's the President of our Global Sleep business to talk about how NeuroStim, Dental, CPAP and how it all fits together.
Thanks, Mick. Just very briefly all since I know we're probably short on time now. The gold standard therapy for sleep apnea continues to be CPAP therapy and that we think that will continue for the foreseeable future. We get a chance to see a wide range of technologies as they emerge and we always look very carefully at anything we think is an alternative. And as Mick mentioned, we obviously have a fantastic oral device, which we saw in Europe very successfully, the Narvaal device, high-tech, 3 d printed, very low volume in the mouth, very comfortable.
We've looked at the nerve stim space for quite a long time. There have been a number of companies that have tried to succeed in the nerve stim space. We think Nexoia has a novel offer and is potentially disruptive, but it's very early days. It's a minority investment in what's effectively a startup company. So we like the technology, we like the play, but we'll have to see how it plays out.
Our next question comes from Chris Cooper with Goldman Sachs. Please state your question.
Hi, good morning and afternoon. Mick, can you just remind
us of the approximate payer mix in the
sleep apnea business, please? And as I appreciate this is a highly dynamic situation, but can you just share your thoughts on how you expect the higher rates of unemployment we're seeing in the U. S. To impact that business, please?
Yes, Chris, thanks for the question. And yes, certainly, every country around the world is different. I presume you're asking about the U. S. Payer mix, Chris?
Maybe you're on mute, but I'll start with the Yes. I'm primarily am. Yes. Okay. Yes.
So obviously, we sell in 140 countries outside the U. S. And on the reimbursed part of our business, the non SaaS part, part, it's close to that sixty-forty range, 60% being within the U. S. And 40% being beyond that.
And if you include SaaS businesses, it's more like 65% of our global business in the U. S. So I'll start with that. So we don't have contracts directly with payers, but our portfolio of home medical equipment customers do. And there's around 5,000 customers in the U.
S. Home medical equipment providers. And their payer mix for the field of sleep apnea and COPD that we serve is around 20% maybe 25% for some regions Medicare and around 75%, 80% private pay. And as we've seen through the COVID-nineteen crisis, we have seen ongoing payments from both the government and private payers through the ResMed. We are carefully watching our accounts receivable.
And as Brett said, we're carefully watching our cash flow to make sure that payers pay on time and with time, but we haven't seen any issues as yet. Clearly, unemployment has increased in the country from single digits to double digits through this crisis and it's something that all companies are looking at very carefully. But we haven't seen any issues as yet, but we are watching the cash flow very carefully to make sure that we have continuing flow of capital and cash through our business.
Thank you. Our next question comes from Mike Matson with Needham and Company. Please state your question.
Yes, thanks.
So I guess, first, just wanted to
ask about the resupply business. Wondering why you think that that's been so strong? Is there any kind of demand pull forward happening there? Do you think that can be sustained as long as the pandemic continues?
Yes, Mike, thanks for the question. And certainly, it's quite interesting. As you know, you followed us for a long time too, Mike. Our installed base of CPAP patients, sleep apnea patients is a very strong part of our mask business. We're talking north of 80% plus of our mask sales across the U.
S. Are to that installed base of a diagnosed patient who loves their therapy, it's changed their life and they're going to go and reorder every time. I think the focus of COVID-nineteen and that it's a respiratory medical issue and that has raised the importance of making sure that your lungs are well taken care of and that you breathe well and your overall health is well has increased people to make sure they get their prescriptions for everything including heart attack post heart attack patients are getting more prescriptions of pills. As I noted earlier, the PROPELA side COPD medicines and asthma medicines, we're seeing increased use of those in respiratory medical health. And we've seen a similar thing, I think, in the CPAP mask side where when you are capable of getting a mask, you are more likely to click yes, I would like that.
And we haven't seen any reduction in people saying, oh, the co pay is too high or I don't want to go there. We've seen actually the reverse where people are saying, wow, it's been 90 days. I'm due for a therapy, for a CPAP mask, tubing, etcetera. And they're clicking yes and they're getting devices delivered to them. We saw a very strong ballast in the boat for our HME customers.
And the HME customers themselves are really focusing on this part of their business because it's a good that might decelerate somewhat, but we don't think we think there's a lot of balance in that and people who are on CPAP therapy and loving their CPAP therapy are going to want to get new masks. And through COVID and beyond, the importance of respiratory medicine will only be increased because of this. So we think that part of our business is very steady through the crisis and even stronger beyond. I think it will change behaviors that will last well beyond COVID-nineteen search.
Okay. Thanks. And then just with regard to sleep diagnostic testing, can you provide any more detail around the declines that you're seeing kind of late in the March quarter? And then to what degree could increased use of home testing kind of some sort of remote telemedicine model offset that? And are you doing anything to try to enable the sleep labs to implement to ramp up, I guess, their home sleep testing?
Thanks.
Yes. Great follow-up question Mike. And we're doing a lot in that space. I'm focused a lot with Rob Douglas on our global task force on COVID-nineteen and ventilators. Jim Hollingshead in the same time has been running our sleep business strongly.
Jim, do you want to follow-up on the follow-up there on home sleep apnea testing and scale?
Sure. Thanks, Mick. I think it's very difficult to quantify the effects and the balances of decline in in lab testing and increase of home sleep testing in general. And it's very different country by country, both because of the timing of the pandemic and then how different healthcare systems are structured and so on. So trying to get at a quantification, I think, is quite difficult.
What we do know is, we have seen some decline in in lab testing. That's not a surprise. Healthcare systems around the world have shifted their focus to COVID-nineteen. Many countries have gone on lockdown, much of the U. S.
Has gone on lockdown. So we know that in lab testing has declined and dipped. We have some evidence to suggest it stabilized at a lower level. It's hard to know exactly what that level is, but we think it's potentially stabilized at this point. But in parallel, we also know there's been an increase in home sleep testing and remote testing.
A number of the labs around the U. S. Have increased their use of home sleep testing devices and routines. And where that's done in Europe and can be done in Europe, it continues to be done. And we think it will turn on faster in Europe.
And then the final point of your question is what are we doing? We're actually working very hard to enable home sleep testing to figure out how to help our lab customers and our physician customers virtualize their model, not just through our device offerings, but through workflows, through webinars and trainings. And we're working hard to see if we can virtualize some of that with software, which will take a little bit more time. And we do think that a shift to home sleep testing is which has been going on worldwide for years will be accelerated by this. And just as Nick said in his prepared comments, one of the things that we think will come out of the crisis generally for the sleep business is increased adoption of our already very broad offerings, virtualized care offerings.
And so we think that will accelerate through the crisis and then have the new normal coming out of the crisis.
Thank you. Our next question comes from Margaret Kaczor with William Blair. Please state your question.
Good afternoon and good morning, Brett, to you. Just wanted to follow-up on the comment you guys had on production of NIBs and LSPs. I think I heard you guys say you produced 52,000 of those devices in the quarter, which I know you guys don't give ASPs, but it seems like it could be $200,000,000 or $300,000,000 worth of products in the device side versus the $35,000,000 benefit you saw in the quarter. So I guess long intro, but the question is, were those made to order or in advance of demand? And how should we think about that product entering the field?
Thanks.
Margaret, that's a great question. And yes, certainly, we did you heard correctly, we made 52,000 non invasive ventilators and invasive ventilators. So that includes everything across the Astral, Stellar, Loomis, Flexo, GA and AirCurve all those devices. So we included across all that group 52,000 and they have very different pricing. But clearly it's a lot more than just the $35,000,000 of sales in that quarter.
So we are prepared for demand ahead. The only thing I'm really willing to say on a public call like this is that we have a public capability with the U. S. Government through HHS and FEMA of over $30,000,000 contract. And so that's a fixed contract that we will fulfill mostly in Astrails.
And but we have many other contracts with hospitals, states, governments, nations around the world. I'm not going to go in and quantify any of those. They're usually 1 to 1 directly to those countries and directly to those hospitals. But what I can tell you is all the demand that they have and all the supply that we have, our supply just cannot keep up with the demand as it moves around the world. And so what we're doing is maximizing production in advance and then making sure we get through the peak and through the surge, but not have an over amount of inventory at the other side.
And so carefully managing the peak, the surge, the flattening and then making sure we get back to normal COPD neuromuscular disease ALS and other sales with those ventilators because those patients will be there beyond. And that's how we're looking at it Margaret. But yes, clearly, we are preparing for more sales in the future of those ventilators and ventilation masks. Those tailwinds will last through Q4 and likely beyond.
Yes. I'll just add quickly, Margaret, yes, there's a lot there's a meaningful amount that's in transit, so to speak, as we're trying to get those into our DCs and then ultimately to customers. So there's that impacts it as well. So that will continue to produce. And as Mick said, the demand is there.
It's just a matter of getting it through the logistics.
Thanks guys. Congrats.
Our next question comes from Steve Wien with Evans and Partners. Please state your question.
Yes. Good afternoon. Good morning. Just a question on the FDA in terms of its response to COVID-nineteen. It was alluding to the use of CPAP as being something that could be utilized.
I just wondered what the experience was there. And then the other item that the FDA had done was to remove ventilators from the competitive bidding process. And there has appears to be some pressure to delay competitive bidding in the latest rounds. Just any comments on any of those three things would be very useful. Thanks.
Yes, Steve. Those are great questions. And I've had actually quite a lot of conference calls with the FDA Commissioner, Hahn and HHS Secretary, Eiza, during this crisis. ResMed was part of a Defense Production Act that was put in place by the White House to secure component supply for our ventilators so that we could supply HHS, FEMA and beyond. And so had a lot of interaction there.
Look, the FDA have really been a great partner through this process. They helped us get emergency use authorization, EUA, for a number of our products to be used in different contexts. So for instance, our non invasive ventilators which were very scalable and as we talked about we made tens of thousands this quarter. We had doctors wanting to use them in various ways invasive ways and others and so doctors needed an EU way to be able to do that and they have got that. And the FDA were very quick to us and other manufacturers in providing those emergency use authorizations.
Simultaneously, Secretary Azar over at Health and Human Services and CMS, they did take non invasive ventilators out of competitive bidding around 2021. And that was a very good change for our HME customers. It really took a load off for them knowing that these NIV and ventilation businesses will be good ongoing concerns for them. So we saw good partnership from both the FDA and HHS as part of this crisis. And HHS also worked with FEMA to make sure that we got the demand and that was the $30 plus 1,000,000 contract I talked about to us.
There were 5 other manufacturers who got contracts as well. I think the government is not just in the U. S, but in all 100 plus countries that we're working with here through this crisis have done a great job in contacting us, working with us, helping us with supply chains and helping us with delivery of ventilators to people in the need for this crisis.
And sorry the final part was just the pressure that's being or the attempt to delay competitive bidding, the likelihood of
that? Yes.
I'll hand that over to Dave. He's got more insight on that. Dave Pendarovis?
Yes. So thanks, Steve. We, along with the rest of the industry, have been suggesting to CMS that they either delay for a year the introduction of the 2021 round entirely or at least the respiratory offerings, respiratory product codes within that offering of the 2021 round of competitive bidding. We have had a dialogue with CMS on that topic, so they are listening. But I can't really handicap the likelihood that it will happen or not.
I would echo what Nick said earlier that CMS has been very responsive. And I think it has highlighted the importance of DME and home based care in ensuring that as few people are in the hospital is not. And that's a real positive. We hope that that cooperative working relationship will continue.
Right. Thanks, Steve.
Our next question comes from David Lowe with JPMorgan. Please state your question.
Thanks very much. Mick, can I just follow-up on the use of bar level devices to treat COVID-nineteen patients? I mean, there's clearly the aerosol issue and the safety issue there. I have seen some efforts to overcome that. Do you think that's going to be in on I mean, and I heard your comments, excuse me, about the amount of manufacturing capacity you have.
Is your expectation that there will be continued strong demand for that utilization model?
Yes. Look, it's a great question, David. And certainly, through this crisis, one of the leading countries early on this was the U. K. And the National Institute the National Health Service there sorry the NHS.
And they created a protocol which looked at the very security levels of a COVID-nineteen patient because the disease the coronavirus gets into the lungs and then causes the COVID-nineteen disease, which is where mucus builds up as the alveoli react and try to fight off the virus and it creates mucus in the lungs and builds it up. And so at different levels of buildup, different levels of acuity, different therapies are needed. And so the NHS created a very strong protocol of using both CPAP with some supplemental oxygen from the wall as well as bilevel therapy and then upgrading to more aggressive non invasive ventilation therapy because bilevel is non invasive positive pressure ventilation therapy, but then upgrading to high levels of non invasive ventilation therapy and even upgrading all the way to the full intubation through the trachea of invasive mechanical ventilation. And all those different modes can be moved up and down by the doctor as they move through the process. Your question about and it was a big question and concern early on that, oh gosh, what if we have some contagion that some of the COVID-nineteen will come out?
Well, before you put on an invasive mechanical ventilator, if a patient coughs or sneezes, the room is already contaminated. So even with invasive ventilation, there are some contamination protocols. And so what you need is a COVID-nineteen ward, You need PPE for everybody and you need to establish this floor of the hospital is for COVID-nineteen with negative pressure and take care of it that way. And that's what they've done in the U. K.
And actually that moved to different parts of New York, New Jersey. And as we see this go around the world, people are learning to do that. What you have is a non vented mask, so a ventilation mask with an inlet and outlet and then a filter on the outlet of the device. And so our Chief Medical Officer, Carlos Doctor. Carlos Nunez has been working with key opinion leaders worldwide and we have a clinical white paper with best practice from Wuhan, from Milan, from London, from Munich, but they're doing it really well in Germany and from New York and around the world.
And that protocol does include CPAP, it does include bilevel, it does include non invasive ventilation with positive pressure or with specific masks and specific circuit setup all the way up to invasive mechanical ventilation. Now the second part of your question after the crisis will people continue to use more non invasive ventilation? I think the answer is yes. I think it's going to be similar to digital health where you've had to use home sleep apnea testing, you've had to use remote patient monitoring during this crisis and you don't want to go to a patient's home, you don't want them to have to come to hospital and so that's driven digital health. I think people, doctors in critical care units have seen how non invasive ventilation, including bilevel, has very well treated patients with COVID-nineteen, why can't it very well treat COPD patients?
Well guess what? It can. So I think the adoption of NIV will increase post COVID-nineteen because of the learnings during COVID-nineteen. I can't quantify that exactly. It's more a medium long term thing.
But anyway, I hope that answers your question, David. It's a very good one. It deserves a longer answer. And I know we're 10 minutes over. We might just take 2 more questions and let everyone get back to their work day.
3 more questions. Okay.
Thank you. Our next question comes from Matthew Mishan with KeyBanc. Please state your
question. Great. Thank you for taking the questions. And also it's really remarkable, the efforts of you and the employees of your company to support this crisis. So thank you for that as well.
I'll just leave it
to one because most of my questions have been asked. I've heard that there's potentially long term respiratory implications from COVID-nineteen exposure. How do you see that patient transition to post acute?
Yes. It's a great question, Matthew. I'll hand that to our President and Chief Operating Officer, Rob, to talk about post COVID-nineteen discharge, what are the next steps? Rob?
Yes. Thanks, Matthew. That's a good question. It's still an uncertain world in terms of what these post protocols are going to be across the board. We're seeing different trials and tests being carried out.
In some areas, we are seeing patients get discharged with oxygen and we are noticing an uptick in demand for oxygen around the place. And in other areas, we are seeing some discharges with more CPAP. But I think it's still way too early to say. Probably the earliest data we've got is in China where things are normalizing a little bit. The sleep labs aren't yet open, but we're seeing continued ongoing demand for longer term ventilation.
So it's probably leading off the dynamic that Nick mentioned earlier that ventilation is non invasive ventilation and chronic ventilation is recognized as a more relevant treatment than what it had been before.
Thank you. Our next question comes from Sean Lehman with Morgan Stanley. Please state your question.
Hi, Mick. Hello, everybody. And well done. Mick clearly doing a great job navigating. Sorry if I've missed it, but my question is the $35,000,000 of COVID revenue, was there any geographic sort of breakup of that?
And just to clarify, was that all bent revenue? Thanks, Mick.
Sean, that's a great question. Not comfortable going into details of where the $35,000,000 came from. That's sort of our global number. And it's truly an estimate. It's the vast majority of it is ventilation.
And so it's Astrails, Stellas, Loomis, AirCurve ST types of products. I'll hand over to Brett Sandacock, our CFO to see if he wants to provide any further detail on that $35,000,000
Yes. Thanks, Mick. I mean, the only other there is some there will be some mask and accessories in that as well. You'd maybe that accounts that's kind of 10% of that number and the rest would be devices. Great.
Thank you, gentlemen.
Thanks, Sean.
Your last question comes from Gretel Janu with Credit Suisse. Please state your
So you mentioned the double digit declines in the diagnosis rates in the quarter due to lockdowns. I'm just wondering whether you saw any slowdown in the actual fleet new patient setups in the Q3 or will most of that impact from the slower fleet diagnosis impact the 4th quarter? Thank you.
Yes, Gretel, thanks a lot. Look, as you can understand, there's a lot of moving pieces going on right at the moment and we're watching it through the quarter and in different countries. And even in some countries in the world, have seen that decline like in China, we saw that decline in January, February and we are actually starting to pick up on the rates as you started to exit the quarter and some regions of China starting to open up and then diagnosis starting to open up again. But and similarly in South Korea and some other areas that have COVID-nineteen under control now. But I'll hand over to Jim Hollingshead to see if he wants to provide any further detail of the sort of kinetics of the double digit reduction in diagnostics and the impact on sort of that headwind I guess of sleep device sales while we have the neutral element of sleep masks continuing through.
Jim?
Yes. Thanks, Mick and thanks, Gretel. With a little bit of a lag, you can also see a bit of a drop off in new patient starts, which we have the ability through our connected solutions to see. As I said before, I think we're seeing diagnosis stabilize a bit and I expect some countries to start to turn back on in the near term And we're seeing new patient starts also stabilize a bit. So hopefully we're going to bounce off of the floor here.
It's very difficult to predict what that will look like. It will be different country by country and even metro area by metro area.
Great. Well, thanks for all the questions and thanks to everyone for continuing the 15 minutes over here. I think we'll all agree this was a very unique quarter for not just ResMed, but for all companies worldwide. Look, I'll go with the close now, I think, here and close on up. I'd like to thank again to all our shareholders who have joined us for this call.
I'd also like to shout out again to the 7,500 ResMedians helping people in 140 countries. You guys are also shareholders in the most part And I want to thank you for your dedication and hard work helping people breathe better, sleep better, live better lives outside the hospital. Thanks for all that you do all day every day. Thanks especially to those frontline heroes, the people making the products, distributing the products and getting those vents to those 140 countries to somebody who's suffocating and needs our help. I look forward to talking to all of our stakeholders again here in 90 days.
And with that, we'll close it up. Thank you, Diego.
Great. Thanks, Mick. Thank you all again for joining us today. And just a reminder, if you have any additional questions, please don't hesitate to reach out to me or to Investor Relations. And as previously mentioned, all the documents along with the transcript and a replay will be available on our website later today.
Thanks, Diego. You can now close the call.
Thank you. This concludes ResMed's 3rd quarter of fiscal year 2020 earnings live webcast. You may now disconnect.