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.