Lincare Predicts Rough 2009

Last week Lincare reported
revenues of $415.1 million for the fourth quarter ended Dec.
31, a 1 percent increase over $412.3 million for the same quarter
in 2007. Net income was $58.2 million compared to $57.6 million.
Revenues for 2008 were $1.665 billion, a 4 percent increase over
$1.596 billion in 2007. Net income was $237.2 million compared to
$226.1 million. The Clearwater, Fla.-based provider added 14 new
operating centers in the fourth quarter, with 11 from internal
expansion and three from acquisitions. For the year, it added 44
centers, bringing its total number of locations to 1,063.

As for 2009, while the company said it it still evaluating the
potential impact of Medicare reimbursement changes, it estimated
revenues and operating income this year “will be negatively
impacted by approximately $240 million to $255 million.” That
includes $110 million resulting from the 9.5 percent cut for
products inititially included in Round One of competitive bidding
and additional reductions for stationary oxygen equipment of
approximately 2.5 percent contained in CMS’ 2009 fee schedule. The
estimate also includes $130 million to $145 million in reductions
related to the 36-month oxygen cap.