Lincare Profits Drop 44 Percent

CLEARWATER, Fla. — In February, Lincare said it
expected Medicare’s Jan. 1 reimbursement changes — the 9.5
percent DME cut and the 36-month oxygen cap — would impact
the company by $240 million to $255 million this year. The giant
respiratory provider did not revise those estimates in announcing
financial results for the second quarter.

Net income for the three months ended June 30 was $33.5 million,
a 44 percent drop from $60.1 million a year ago.
Revenue fell 11 percent to $380.4 million from $428.4 million for
the same period in 2008.

The results also reflect lower Medicare reimbursements for
respiratory medications of approximately $7.7 million compared to
last year, a company statement said.

“While the Medicare changes effective as of Jan. 1 of this year
have been challenging, we are experiencing strong growth in our
core respiratory business as our competitors struggle to deal with
the severe financial consequences of the Medicare price cuts,” said
Lincare CEO John P. Byrnes.

The company has 1,056 branches in 48 states serving more than
700,000 customers.