American HomePatient Reports Year-End Results

BRENTWOOD, Tenn.–American HomePatient reported a slight decline
in 2004 revenue and net income last month, attributing the drop to
a cut in Medicare reimbursement for inhalation drugs. The drugs
make up about 12 percent of the company’s revenue.

For 2004, the company reported $13.2 million in net income
compared to $14 million for 2003, and $335.8 million in revenue,
slightly less than prior-year results of $336.2 million.

During the fourth quarter, however, the company reported strong
increases in net income–$8.2 million, compared with $4.7 million
for fourth-quarter 2003. The company attributed the increase to
reduced operating expenses, including increased efficiency and
reduced personnel costs.

American HomePatient, which operates 276 branches in 35 states,
emerged from bankruptcy protection in July 2003.