BioScrip off to ‘slow start’ in 2015
ELMSFORD, N.Y. – Despite another quarter of double-digit growth for its home infusion biz, BioScrip execs last week expressed “disappointment” that first quarter 2015 results weren’t stronger.
“We had a slow start to the year due to seasonality and severe weather in many of our markets,” said Rick Smith, president and CEO during a May 8 earnings call. “When the weather is severe, roads shut down and hospitals hold on to patients a little bit longer.”
Business picked up in March—a trend Smith said was continuing well into the second quarter.
BioScrip reported revenues of $244.4 million for its home infusion services business, reflecting 10.6% growth year-over-year. Total revenues were $261.7 million, a 9.4% increase compared to the same period last year. It reported net losses of $15.9 million vs. $25.3 million.
BioScrip remains focused on identifying cost savings and creating a leaner company by, among other things, implementing turnaround plans for underperforming locations and improving cash collections. Year-over-year cash collections were $250 million, but collecting on older accounts is proving difficult, said Tom Pettit, COO.
“We have more work to do with aged accounts over 365 days,” he said. “In addition to adding staffing, we have implemented specific payer and patient-pay projects to improve collections.”
In another move toward improving financials, BioScrip in April named Jeffrey Kreger as senior vice president, CFO and treasurer.
“I look forward to working with Jeff as we look to strengthen operations and the balance sheet of the company,” said Smith. “We believe the steps we took during the first quarter to solidify our financial foundation and strengthen our leadership team are prudent and necessary.”