This fool likes Lincare

Thursday, March 31, 2005

YARMOUTH, Maine — It’s not often that you see someone outside the HME industry dive into its tangle of Medicare regulations and market forces and emerge speaking coherently. When you do, it’s worth taking note — whether you agree or disagree with what’s said.On Feb. 14, the Motley Fool, a sort of everyman’s guide to investing, published an article entitled, “Apria needs a Breather.” In it, author Stephen D. Simpson presented an interesting analysis of Apria and Lincare and their potential to thrive in the current tough reimbursement climate. In part, here’s what Simpson, who owns no stock in either company, had to say: While Lincare’s much greater dependence upon Medicare is a definite concern, it has nevertheless managed to post higher growth and better margins than Apria. Fools should of course do their own due diligence, but Lincare looks to be the better bet at present.