Lincare enjoys 26% increase in profits
CLEARWATER, Fla. - Lincare last week reported net revenues of $418.7 million for the third quarter ended Sept. 30, 2010, a 6.6% increase compared to the same period in 2009. Net income was $45.5 million vs. $36 million, a 26.2% increase.
Lincare credits the increase in revenues in the third quarter to internal and acquisition growth of about 10%. Offsetting that: About $13.1 million in Medicare cuts for the quarter, representing a 3.4% negative impact.
The provider reported $1.247 billion in revenues for the nine months ended Sept. 30, 2010, an 8.9% increase compared to the same period in 2009. Net income was $135.5 million vs. $95.5 million, a 41.9% increase.
Despite "exceptionally strong operating cash flows," Lincare officials noted that the provider increased its allowance for uncollectible accounts in the third quarter.
"The additional reserves reflect the increasing number of customers who are finding it difficult to pay their out-of-pocket charges due to loss of insurance coverage or reductions in their investment or employment income," stated CEO John Byrnes in a release.
Lincare officials also noted that the recently released average sales price (ASP) data for inhalation drugs for the fourth quarter will reduce the provider's net revenues by about $3 million per quarter. That's on top of a $7.1 million reduction for the third quarter.
Going forward, Lincare will keep its head down, company officials stated.
"We continue to focus on those activities that we believe will drive the long-term success of our company--an emphasis on organic revenue growth driven by our market leading position in our core respiratory service lines and expansion of our product offerings across our national network of local distributions and sales centers, accompanied by disciplined cost containment and operating efficiencies that maximize our operating cash flows," Byrnes stated.