CLEARWATER, Fla.--Lincare Holdings has announced a net income drop to $50.1 million for the second quarter ending June 30 from $67.4 million for the same period last year.
Revenues for the quarter were $315.2 million, about the same as those for the period in 2004.
The respiratory provider cited reductions in Medicare reimbursement for oxygen, respiratory medications and other DME for the decline, estimating that Q2 revenues were reduced by $49.6 million because of the pricing changes. According to the company, these changes offset the positive effect on revenues in the second quarter attributable to its 11 percent internal growth and 5 percent acquisition growth compared to the same period last year.
The company estimated that the Medicare reimbursement cuts reduced revenues in the first half of 2005 by $83.4 million.
"We are pleased with Lincare's operating and financial performance in the first half of 2005," said CEO John P. Byrnes. We are experiencing strong customer growth and expanding market share in our core respiratory business. We believe that a number of business efficiencies and cost-cutting programs at Lincare have given the company a competitive advantage in the marketplace."
In the second quarter, Lincare completed the acquisition of three companies in Iowa, Kansas and Nevada with annual revenues of approximately $17 million. During the first half of 2005, the company added 57 operating centers, with 34 of those resulting from the acquisition of nine companies with annual revenues of approximately $42 million.
"Our financial position is strong and we achieved significant operating cash flows during the first half of 2005," said Byrnes.
Lincare provides services and equipment to more than 580,000 customers in 47 states.