Apria Reports Losses for Q4, 2010

LAKE FOREST, Calif. — In a financial statement issued Feb.
18, Apria Healthcare announced net revenues decreased for the
fourth quarter and year ended Dec. 31.

For the final three months of 2010, net revenues slid $8.4
million, or 1.6 percent, to $527.7 million from $536.1 million in
the fourth quarter of 2009. The company reported a net loss of
$19.9 million for the quarter.

“The decrease in revenue was due primarily to the non-renewal or
termination of, or changes to, certain payor contracts, partially
offset by an increase in home infusion therapy revenue. We expect
to continue to strategically evaluate our payor contracts,” the
company stated.

For the year, net revenues were $2.08 billion compared to $2.09
billion in 2009. Apria’s net loss for 2010 was $17.4 million.

Looking to its performance in 2011, the statement said Apria
will be affected by “increased selling, distribution and
administrative costs related to the return of certain offshored
billing and collections functions to our personnel in the United
States as we will no longer have the benefit of favorable offshore
labor rates; a full year impact of additional sales personnel that
were only added for a portion of 2010; and an unfavorable impact
related to Medicare competitive bidding.”

In addition, according to the company, “the collection of
accounts receivable is expected to remain one of our most
significant challenges.”

Earlier this month, the 500-branch provider announced it would
acquire
Praxair’s U.S. home care division.