Medicare cuts slash Lincare's revenue
CLEARWATER, Fla. -- Lincare estimates that Medicare reimbursement cuts that took hold this year reduced its second quarter revenues by $49.6 million.
For the quarter that ended June 30, 2005, revenues were $315.2 million, similar to revenues of $315.4 million for the second quarter of 2004. Net income for the quarter ended June 30, 2005, was $50.1 million, compared to net income of $67.4 million for the second quarter of 2004.
Financial results for the quarter, were hurt by reductions in Medicare reimbursement for oxygen equipment that took effect April 1, 2005, and for respiratory medications and certain items of durable medical equipment that took effect on January 1, 2005.
Revenues for the first six months of 2005 were $620.4 million, similar to revenues of $622.3 million for the comparable period in 2004. Net income for the six months was $104.7 million compared to net income of $130.3 million for the first half of 2004.
Lincare estimates that the Medicare reimbursement cuts reduced revenues in the first half of 2005 by $83.4 million.
During the first half of 2005, Lincare added a total of 57 operating centers -- 23 derived from internal expansion and 34 from the acquisition of nine companies with annual revenues of approximately $42 million.