Rotech: 'Patient growth continues to be good'
ORLANDO, Fla. – Rotech Healthcare on Nov. 14 reported net revenues of $113.8 million for the third quarter this year compared to $122.4 million for the same period last year. Net loss was $12.8 million vs. $2 million.
Rotech reported net revenues of $347.3 million for the nine months ended Sept. 30, 2012, compared to $365.4 million for the same period last year. Net loss was $43.8 million vs. $7.7 million.
Organic patient growth and previously completed asset purchase transactions contributed about $2.7 million and $700,000, respectively, for the third quarter this year compared to the same period last year. That growth was offset by $12 million in losses from:
• Decreased neb med volume and reimbursement ($1.8 million)
• Decreased net revenue from higher rates of contractual/revenue adjustments ($3.2 million)
• Patients moved to non-billable status primarily as a result of Medicare claim denials from prepay and post-pay audits ($3.3 million)
• Decreased net revenue from oxygen patients reaching their 36-month capped rental ($3.5 million); and
• Decreased net revenue from non-core product lines ($.2 million).
President and CEO Philip Carter, who plans to retire Dec. 31, says things are looking up for Rotech.
"Patient growth for our key product lines continues to be good, and our efforts to reduce adjustments for contractuals and bad debt are beginning to have a positive impact," stated Carter in a press release. "Planning for 2013 is well underway to position the company for improved financial performance for the year ahead."
[See also: Rotech’s complete balance sheet]