Providers post earnings
CLEARWATER, Fla. - Lincare bounced back from a disappointing first quarter and a $10-million fraud settlement by posting $350.1 million in revenues for the second quarter of 2006. That's an 11% increase compared to revenues for the same quarter last year. Lincare attributed the increase in revenues largely to organic growth. In the second quarter of 2006, it added 18 new operating centers--16 of them through internal expansion. Lincare reported $51.9 million in net income for the second quarter of 2006, up from $50.1 million for the same quarter last year.
At the Lake Forest, Calif.-based Apria, revenues were $376.1 million for the second quarter of 2006 compared to $374.9 million for the same quarter of 2005. Net income was $18.5 million compared to $3 million, respectively. "Our collection and cost control initiatives are starting to deliver concrete savings," said CEO Lawrence Higby.
The Brentwood, Tenn.-based American HomePatient reported revenues of $81 million for the second quarter of 2006 compared to $81.6 million for the same quarter of 2005. Net loss was $1.8 million for the second quarter of 2006 compared to a net income of $2.4 million for the same quarter last year. The reason: Medicare reimbursement cuts associated with MMA '03, which reduced net income by $3.3 million, the company stated.
The Southfield, Mich-based Arcadia Resources boasted record revenues of $27.6 million for the first quarter ended June 30, 2006, up 22% for the same period last year. Net loss for the quarter was $158,000, down from a net loss of $1.25 million. The rise in earnings was attributed to Arcadia's expansion into pharmacy and DME, and a mail-order catalog. Arcadia's retail segment, with acquisitions and openings occurring during the year ended March 31, 2006, posted revenues of $1 million for the quarter ended June 30, 2006, compared to $460,000 for the same quarter in 2005.
The Melville, N.Y.-based Gentiva Health Services reported a 29% increase in net revenues for the second quarter of 2006. The company earned $284.1 million for the quarter compared to $220.1 million for the same quarter last year. Net income, however, was down $3.2 million from last year. The company's hospice, respiratory therapy and DME division posted revenues of $30.4 million for the second quarter of 2006 compared to $1.3 million for the same quarter in 2005, primarily due to its acquisition of the Healthfield Group.
The Orlando, Fla.-based Rotech lost $433.7 million dollars in the first six months of 2006 compared to a loss of $1.9 million during the same period last year. Medicare reimbursement reductions for respiratory medications and other non-oxygen HME items reduced net revenue by $13.9 million and $28.5 million for the three months and six months ended June 30, 2006, respectively. Revenues for respiratory equipment and services represented 87.5% of Rotech's net revenues for the first six months of 2006 compared to 88.2% for the same period last year.