Apria takes down for sale sign
LAKE FOREST, Calif. - Apria Healthcare took itself off the market Oct. 25, the same day it reported disappointing financial results for the third quarter (See next story).
The provider's board of directors has decided to focus 100% on growing revenues and improving operations, instead of entertaining potential offers, according to a statement.
"The board concluded that there was no proposal received which, in the board's opinion, appropriately reflected Apria's intrinsic value and prospects for future appreciation," the statement read.
Despite a growth rate of only 1% compared to the same quarter last year, Apria believes a recent settlement involving Medicare billing documentation, new contracts with managed care customers and growing Medicare Advantage plans position the provider for "attractive opportunities for future appreciation," according to the statement.
Apria CEO Amin Khalifa told HME News this summer that "if the price isn't right, a deal won't be struck." (HME News, July 2005).
The word on the street, however, is that Apria may have set a sale price based on financials that didn't reflect the provider's current situation, according to industry sources.
The provider stuck out a for sale sign in June, bringing on board Morgan Stanley to contact interested parties.