Apria posts loss for quarter, year
LAKE FOREST, Calif. - Apria Healthcare announced on Feb. 18 that its net revenues dropped $8.4 million or 1.6% for the fourth quarter.
The provider reported net revenues of $527.7 million for the quarter ended Dec. 31, 2010, compared to $536.1 million for the same period in 2009. It reported a net loss of $19.9 million for the fourth quarter.
"The decrease in revenue was due primarily to the non-renewal or termination of, or changes to, certain payer contracts, partially offset by an increase in home infusion therapy revenue," Apria stated in a release. "We expect to continue to strategically evaluate our payer contracts."
Apria reported net revenues of $2.08 billion for the year ended Dec. 31, 2010, compared to $2.09 billion for the same period in 2009. It reported a net loss of $17.4 million for 2010.
Apria believes its performance in 2011 will be affected by: "increased selling, distribution and administrative costs related to the return of certain offshored billing and collections functions to our personnel in the United States as we will no longer have the benefit of favorable offshore labor rates; a full year impact of additional sales personnel that were only added for a portion of 2010; and an unfavorable impact related to Medicare competitive bidding."
On the bright side, Apria expects its acquisition of Praxair's healthcare division, which is expected to close in March, to contribute $85 million to $95 million to its revenues in 2011.