Growth at Rotech offset by $10.9M in decreases
ORLANDO, Fla. – Rotech Healthcare last week reported net revenues of $116.5 million for the second quarter compared to $121.9 million for the same period last year. Net loss was $13.5 million vs. $2.5 million.
It reported net revenues of $233.5 million for the six months ended June 30, 2012, compared to $242.9 million for the same period last year. Net loss was 30.8 million vs. $5.6 million.
The good news: Rotech reported that organic patient growth and previously completed asset purchase transactions contributed about $2.7 million and $2.9 million, respectively, for the second quarter this year compared to last year.
The bad news: That positive growth was offset by about $10.9 million in decreases, including:
• Decreased neb med volume and reimbursement ($2 million)
• Decreased net revenue from higher rates of contractual/revenue adjustments ($1.5 million)
• Patients moved to non-billable status primarily as a result of Medicare claim denials from prepay and post-pay audits ($3.6 million)
• Decreased net revenue from oxygen patients reaching their 36-month capped rental ($3.3 million); and
• Decrease net revenue from non-core product lines ($600,000).
President and CEO Philip Carter focused on the good news in a press release.
“We are pleased with continued patient growth and the ongoing effort to reduce adjustments for contractuals and bad debt,” he stated. “Our adjustments were lower in the second quarter of 2012 compared to the first quarter of 2012, and this trend is expected to continue for the balance of this year.”
For the run down on an accompanying Form 10-Q that Rotech filed last week, go here.