Praxair Acquisition Pays Off for Apria

LAKE FOREST, Calif. — Last week Apria Healthcare posted
net revenues of $536.7 million for the first quarter ended March 31
compared to $508.9 million for the same period in 2010. Revenue for
the three months increased primarily due to home infusion revenues
and its March acquisition of
Praxair’s U.S. home care assets.

The revenue increase was partially offset by the non-renewal or
termination of, or changes to, certain payer contracts among other
factors, the company said in a May 9 release. The provider reported a net loss
for the quarter of $21 million.

For 2011, Apria said it expects the Praxair addition to
contribute approximately $85 to $95 million to its revenue. Its
performance for the year will also be affected by increased
selling, distribution and administrative costs related to the
return of certain offshored billing and collections functions to
its 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, the company said, “the collection of accounts
receivable is expected to remain one of our most significant
challenges in 2011.”