CLEARWATER, Fla. - Lincare in February reported that Medicare cuts helped drive down its net income to $136.1 million in 2009 from $227.3 million in 2008. It reported net revenues of $1.55 billion vs. $1.665 billion. Lincare expects Medicare cuts to do more damage in 2010: A 1.5% reduction in reimbursement for stationary oxygen equipment--from $175.79 to $173.17 per month--will result in a $9 million blow to income and revenues. Lincare also reported earnings for the fourth quarter ended Dec. 31, 2009: Net income of $40.6 million compared to $55.6 million for the same period the previous year and net revenues of $405.8 million vs. $415.1 million.
AHP reports 9.6% drop in revenues
BRENTWOOD, Tenn. - American HomePatient (AHP) in March reported revenues of $61.3 million for the fourth quarter of 2009 compared to $67.8 million for the same period in 2008, a 9.6% drop. Revenues were $236.3 million for all of 2009 compared to $266.9 million for 2008, a 11.5% drop. Net losses were $1.2 million for the fourth quarter of 2009 compared to a net income of $1.5 million for the same period in 2008. Net losses were $13.1 million for all of 2009 compared to a net income of $500,000 for 2008. AHP blames Medicare reimbursement cuts that went into effect Jan. 1, 2009, for its lackluster performance: They shaved revenues by about $6.5 million in the fourth quarter and $27.4 million for the year.
Charm Medical celebrates 10 years
PEMBROKE, Mass. - Charm Medical Supply celebrated 10 years in business in March. The provider has grown to 43 employees, 8,000 square feet of office and warehouse space, and more than 6,000 customers in Massachusetts alone. Its product mix includes incontinence, diabetic, personal care, ostomy and urological supplies, along with DME. Its payer mix includes Medicare and Medicaid, and numerous private insurance companies like Blue Cross Blue Shield and Harvard Pilgrim.
Three plead guilty
to Medicare scam
HOUSTON - Three defendants pleaded guilty to charges of conspiracy to commit healthcare fraud March 2. Bassey Monday Idiong, owner of B.I. Medical Supply, a Houston DME, Linda Eteimo Ere Kendabie and Modupe Babanumi admitted they billed Medicare for "arthritis kits" at a cost of approximately $4,000 per kit but supplied different, less expensive products.