HME providers' overall profits have increased by 11 percent on
average since last year, according to the results of the American
Association for Homecare's 2003 Financial Performance Survey. This
and other survey findings indicate that these businesses are
operating with a higher degree of professionalism, according to Dr.
William Cron, professor of marketing at Texas Christian University,
Fort Worth, Texas, who presented an overview of the industry's
financial performance for show attendees.
For the 120 companies surveyed, findings include:
In 2002, pre-tax profits for the participating businesses
totaled 6 percent; return on assets equaled 11.4 percent; and
return on equity was 18.2 percent.
Twenty (20) percent of responding businesses grew at a plus-rate
of 20 percent from 2001 to 2002.
Thirty (30) percent of the businesses earned less than $3
million; 28 percent earned between $3 million and just below $5
million; 24 percent earned $5 million to $10 million; and 18
percent earned more than $10 million.
Forty-two (42) percent of the respondents represent respiratory
providers, and respiratory products made up 51 percent of the
surveyed companies' product mix. Cron noted a broad-based offering
of sleep-disordered breathing services in the marketplace.
“I'm surprised with the [sleep-disordered breathing]
results,” Cron said. “It is a big business.”
