Rotech Plans Revenue Growth for 2005

Orlando, Fla.

Rotech Healthcare is shifting its focus from turnaround activities to growing revenue and patient care, the company announced last month.

The respiratory giant — which emerged from bankruptcy in 2003 — now has a “competitive cost structure in the marketplace” and has outlined a revenue growth plan based on several initiatives:

• Internal growth — The sales force of 400 has been restructured so the company can commit more time to selling and less to hiring and training new employees.
• New clinical programs — Rotech is expanding its base of respiratory therapists.
• Medicare Part B drugs — A new pharmacy in Kentucky handles dispensing and distribution of all drug reorders.
• Acquisitions — Plans call for spending approximately $30 million to pursue small acquisitions during 2005.
• New branches — A “modest” number are expected to open this year.
• Managed care — More resources are being put into this area, which Rotech expects to grow at a higher rate than its Medicare business.

The 500-branch company will conduct a campaign about its new focus for referral sources and patients using the phrase “We Care About Patient Care.”