Rotech's Q1 revenues jump $9.2 million
ORLANDO, Fla. - Rotech's net revenues inched up to $132.5 million for the first quarter of this year compared to $123.3 million for the same quarter last year.
The company reported a net loss of $2.9 million for the first quarter this year compared to a $3 million loss for the same quarter last year. Like other national providers, Rotech's financial earnings took a hit due to Medicare reimbursement reductions for respiratory medications, especially reimbursement for compounded budesonide.
In all, reimbursement reductions for respiratory medications delivered an $11.25 million blow to recorded revenues.
Respiratory and DME remained about the same percentage of total revenue for the first quarter of this year (87.8% and 11.2%, respectively) compared to the same quarter last year (88.3% and 10.7%, respectively).
Despite reimbursement cuts, Rotech's outlook remains positive, President and CEO Phil Carter stated in a release.
"The company reported solid growth numbers related to patients in both oxygen and nebulizer medications, growing the patient base by 4% over the fourth quarter of 2005, and 14% over the first quarter of 2005," he said.
As of March 31, however, Rotech was not in compliance with its credit agreement. The company is currently negotiating with its lenders to obtain a waiver.