Rotech reduces losses, grows patient base
ORLANDO, Fla. - Rotech Healthcare ended 2010 on a strong note.
The provider on Feb. 28 reported net revenues of $496.4 million for 2010 compared to $479.9 million for 2009, an increase of $16.5 million. It reduced net losses from $21.1 million in 2009 to $4.2 million in 2010.
Rotech also reported net revenues of $123.8 million for the three months ended Dec. 31, 2010, compared to $123.2 million for the same period last year. It reduced losses from $4.7 million for the fourth quarter of 2009 to $3.6 million for the same period in 2010.
"We are pleased with the continued improvement in our financial and operating performance during the fourth quarter and year ended Dec. 31, 2010," stated President and CEO Phil Carter in a release. "We continue to experience positive organic growth in our core oxygen and sleep therapy programs."
Rotech's revenue-generating patients in its core product lines of oxygen and CPAP, including patients from equipment and asset purchases, grew 8.2% in 2010 compared to 2009, according to the release.
Company officials expect that number to continue growing.
"We continue to identify equipment purchase opportunities from competitors exiting the home healthcare market," Carter stated. "Using this newly acquired equipment, during the first two months of 2011, we have begun transitioning new patients. When fully implemented by the end of the second quarter, this process should contribute approximately $10 million of additional adjusted EBITDA on an annualized basis."