In brief: Lincare nosedives; RATC changes name
CLEARWATER, Fla. - Lincare last week reported $380.4 million in net revenues for the quarter ended June 30, 2009, compared to $428.4 million for the same period last year. Net income was $33.5 million vs. $60.1 million. The provider reported $752 million in net revenues for the six months ended June 30, 2009, compared to $843.8 million for the same period last year. Net income was $59.5 million vs. $118.4 million. Lincare stated that "dramatic reductions" in Medicare reimbursement on Jan. 1, 2009, impacted earnings.
RATC 'doesn't resonate with the public'
ALEXANDRIA, Va. - Goodbye, Rehab and Assistive Technology Council (RATC). Hello, Complex Rehab and Mobility Council (CRMC). AAHomecare's board of directors voted in July to change the name of the council to make it more approachable. "Rehab and assistive technology doesn't mean anything to the outside world," said Tim Pederson, chairman of the CRMC and CEO of WestMed Rehab in Rapid City, S.D. "It doesn't resonate with the public like complex rehab and mobility does."
In the red: Medicare CPI for HME
WASHINGTON - The Medicare DMEPOS fee schedule update on Jan. 1, 2010, will be negative 1.4%, according to the consumer price index recently published by the Bureau of Labor Statistics. The CPI, measured from one June to the next June, dictates the update for the following year.
Invacare boosts second-quarter earnings.
ELYRIA, Ohio - Invacare's second-quarter sales dropped 7.7% to $412.5 million, but the company's earnings increased thanks to improved gross margins, a lower interest expense and a lower tax rate, the company reported last week. Earnings for the second quarter jumped from $10.9 million last year to $12.7 this year. For the second quarter, the company also generated $40 million in free cash flow compared to $11.4 million last year. "The company benefited from improved gross and operating margins, which were largely due to cost reductions, and from a decision to limit business with various customers that did not provide an adequate return," CEO Mal Mixon stated in a release.