Apria pares down back-end services

Wednesday, November 30, 2005

LAKE FOREST, Calif. - Apria Healthcare will close its Sacramento billing office and lay off 75 people in January. In the same month, it will open a 100,000-square-foot Woodland distribution center that will employ 75. Both moves are part of the provider's strategy to reduce the number of billing and distribution facilities nationwide to save money in the face of reimbursement cuts, according to the Sacramento Business Journal. While it wants to keep services like in-home visits as close as possible to its patient base, the provider plans to consolidate back-end services like billing and distribution. For instance, Apria plans to pare down its number of billing centers from 38 to less than 20 by the end of 2006. The provider claims neither move has anything to do with lackluster earnings for the third quarter, with its spokeswoman telling the business journal that consolidation has been something that Apria has had in its sights for a while.