Sunday, August 31, 2003

Apria’s DSO continues to shrink

LAKE FOREST, Calif. - Apria Healthcare continued to push down its DSO in the second quarter, reducing it from 53 to 52 days, the company reported last month. Apria’s DSO looks all the more impressive when compared to the industry average, which stands at 85 days, according to AAHomecare’s 2002 Financial Performance Survey Report. During the first half of 2003, Apria acquired 12 business for an aggregate purchase price of $44.6 million. All of the deals were funded from cash flow generated from operations, stated President Lawrence Higby in a release detailing the company’s second quarter results. Net income for the second quarter of 2003 was $29.4 million, which represents a 12% increase over net income of $26.2 million for the second quarter of 2002.
Lincare grows cash, expands service reach

CLEARWATER, Fla. -  Lincare acquired four companies with annualized revenues of $62 million during the second quarter that ended June 30. The acquired businesses were operating in Florida, Kentucky, Michigan, New Jersey, New York, Ohio, Pennsylvania, and West Virginia. Lincare added 38 new operating centers in the second quarter, with 24 of those locations derived from acquisitions and 14 locations derived from internal expansion. For the first six months of 2003, Lincare has acquired eight companies with annualized revenues of about $78 million. Net income for the quarter was $56.8 million compared to net income of $46.5 million for the second quarter of 2002.
DME fraud nets culprit two years in the slammer

WASHINGTON - In California, a man was sentenced to 24 months in prison and ordered to forfeit $856,000 in cash and a $735,000 house for health care fraud, according to the OIG. The man along with his co-conspirators billed Medicare for over $4 million worth of durable medical equipment that was either never provided or provided without a valid prescription from a physician. Investigators declined to release additional information because the case is still under investigation.