Earnings: Lincare, Authentidate
CLEARWATER, Fla. - Lincare earlier this month 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. It estimates that 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.
Still, CEO John Byrnes remains optimistic.
"We are pleased with Lincare's operating and financial performance in 2009," he stated in a release. "Our company met the significant challenges presented by an unprecedented reduction in Medicare payment amounts for our service while continuing to focus on meeting the needs of each our customers. We remain committed to our strategy to maintain our position as the market leader in the provision of home-based respiratory services and to expand our reach into markets were we believe we can add value and compete on the basis of efficiency and quality of care."
In late January, Lincare announced that it had acquired the HME, respiratory and home infusion business of Gentiva Health Services.
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.
The "unprecedented reduction in Medicare payment amounts" include a 9.5% cut for most DME and a 36-month cap for oxygen, both of which went into effect Jan. 1, 2009.
Authentidate absorbs losses
BERKELEY HEIGHTS, N.J. - Authentidate earlier this month reported revenues of $1.528 million for the three months ended Dec. 31, 2009, compared to $1.604 million for the same period in 2008. Net loss was $2.819 million vs. $2.554 million. Authentidate also reported revenues of $3.55 million for the six months ended Dec. 31, 2009, compared to $3.294 million for the same period in 2008. Net loss was $4.932 million vs. $5 million. Authentidate's results reflect a drop in revenues from its German operations due to the timing of certain contract awards and project implementations and a drop in revenues from its U.S. operations due to a contract with Liberty Medical expiring in March 2009. On a high note, Authentidate noted that it has added several new clients, including Landauer Metropolitan, Home Care of the Carolinas, Alliance Medical and HomeTown Oxygen.