American HomePatient reports more losses
BRENTWOOD, Tenn. - American HomePatient recently reported $58.3 million in revenue for the first quarter of 2009 compared to $69.2 million for the same quarter in 2008, a 15.8% decrease.
Net loss for the first quarter was $5.2 million compared to a net income of $600,000 for the same quarter last year.
American HomePatient gave two reasons for the revenue decrease: Medicare reimbursement reductions affecting oxygen and other product lines that went into effect Jan. 1, which reduced revenue by about $6.2 million in the first quarter; and a change in inhalation drug product mix resulting from Medicare reimbursement reductions that went into effect April 1, 2008, which reduced revenue by about $3 million.
Also contributing, but to a lesser extent: American HomePatient's reduced emphasis on less profitable product lines like non-respiratory durable medical equipment and infusion therapy.
American HomePatient was able to reduce operating expenses by $2.6 million or 7.7% in the first quarter of 2009. The provider credits improved operating efficiencies--centralized branch functions, consolidated branches, improved routing and delivery systems, etc.-- for the savings.