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."