Apria’s Q2 Earnings Up; CFO Khalifa Resigns

LAKE FOREST, Calif.–Apria Healthcare Group announced last week
that its second-quarter earnings are up due in part to cost control
measures.

Net income for the quarter ended June 30 increased to $18.5
million, up from $3 million a year earlier. The company said last
year’s second-quarter results were affected by a $20 million
settlement of a government lawsuit over Medicare billing. Revenue
rose slightly to $376.1 million from 2005’s $374.9 million.

The 500-branch provider said this period’s results were hurt by
Medicare reimbursement reductions and related respiratory product
cost increases, and now estimates sales growth for 2006 at 3
percent. However, collection and cost control initiatives have
boosted savings, according to CEO Lawrence Higby.

“During late 2005 and early 2006, we have intently focused our
efforts on improving our billing processes and implementing a
credit card initiative, which has successfully increased the
collection of patient co-pays,” Higby said in a statement. “In
addition, expenditures for patient service equipment reached an
all-time low level, while days sales outstanding improved
quarter-to-quarter by four days–two more indicators that suggest
our cost control initiatives are on the right track.”

The company also announced that Amin Khalifa is stepping down as
chief financial officer effective Aug. 25 to take another position
with a telecommunications company. Alicia Price, Apria’s vice
president and controller, will act as CFO until a replacement is
found.