Bid rates nibble at Apria’s earnings
LAKE FOREST, Calif. – Apria Healthcare has already felt the sting of the Round 2 bid rates, company officials said during an earnings call Nov. 12.
Apria reported net revenues of $607.2 million for the third quarter ended Sept. 30, 2013, a decrease of $1.3 million from the same quarter last year. Net loss was $15.8 million.
“Almost the entire decrease is due to the competitive bidding cuts that were effective July 1, 2013,” said CEO John Figueroa.
Apria accepted 371 contracts under Round 2 of competitive bidding. The company has also accepted contracts in the Round 1 re-compete, including Coram’s contracts for home infusion in all nine bid areas.
Despite the financial hit to the company, Apria expects “minimal” disruption to patients, payers and referral sources, said Figueroa.
Revenues for Apria’s respiratory therapy/home medical equipment division were $278.1 million for the third quarter, a decrease of $23.1 million compared to the same quarter last year. Those losses were offset by continued gains in Apria’s Coram home infusion division. Revenues for that division were $975.3 million for the third quarter, an increase of $68.9 million compared to the same quarter in 2012.
Home infusion accounts for about 53% of Apria’s overall revenues and should continue to grow, said Figueroa.
“There are a number of interesting infused drugs in the FDA pipeline that have us very excited about the growth prospects in the infusion segment,” he said. “Because of our strong relationships with drug manufacturers, we are well prepared to participate in those launches.”
Apria reported net revenues of $1.8 billion for the first nine months of the year, an increase of $30.7 million compared to the same period last year. Net loss was $53.8 million.