Lincare's Q3 Revenues Up
CLEARWATER, Fla. — Last week Lincare Holdings reported a 6.6 percent revenue gain over last year's third quarter, posting a $418.7 million tally for the quarter ended Sept. 30, 2010. Company officials attribute the boost to 10 percent internal and acquisition growth, which offset an estimated 3.4 percent negative impact from $13.1 million of Medicare payment changes during the third quarter of 2010.
Net income for the quarter was $45.5 million, a 26.2 percent increase over net income of $36 million for the third quarter of 2009.
Stated Lincare CEO John Byrnes in a release, "We continue to focus on those activities that we believe will drive the long-term success of our company — an emphasis on organic revenue growth driven by our market leading positions in our core respiratory service lines and expansion of our product offerings across our national network of local distribution and sales centers, accompanied by disciplined cost containment and operating efficiencies that maximize our operating cash flows."
Cumulative revenues for the nine months were $1.247 billion, an 8.9 percent increase over net revenues of $1.145 billion for the comparable period in 2009.
"While we generated exceptionally strong operating cash flows in the first nine months of 2010, we increased our allowance for uncollectible accounts in the third quarter," added Byrnes. "The additional reserves reflect the increasing number of customers who are finding it difficult to pay their out of pocket charges due to loss of insurance coverage or reductions in their investment or employment income."
Lincare generated $259.2 million of cash from operating activities during the first nine months of 2010 and invested $80.3 million in net capital expenditures, and $11.4 million in business acquisitions. As of the end of September, total long-term obligations, including current installments, were $496 million, and cash and investments were $197.1 million.
Company officials acknowledged that fourth quarter average sales price (ASP) data for inhalation drugs published by CMS will result in a reduction in net revenues of about $3 million per quarter. That's in addition to the $7.1 million impact of ASP-based payment reductions for Q3.
Great Lakes Home Health Expands
JACKSON, Mich. — Great Lakes Home Health and Hospice has acquired In-House Hospice in an effort to boost its hospice and palliative care capabilities in Michigan and Ohio. Great Lakes already has a sizable Midwest operation serving more than 4,500 patients in the home health, hospice, HME and private duty care arenas.
Exact terms of the transaction were not disclosed. The company has more than 600 employees in nine locations across Michigan and Indiana.
Philips Respironics Hosts Two Webinars
MURRYSVILLE, Pa. — With oxygen and sleep therapy challenges mounting in the home care world, officials at Philips Respironics will offer two "Know How" webinars. The seminars will offer business opportunity calculators to help providers assess the potential of oxygen-generating systems and OSA supply replacement programs.
The webinars are free and will last approximately one hour. No special software is required. For information, go to http://Respironics.01o.com/ajtk/servlet/JJ?H=1fv51u&R=871725264.
Valiant Acquires Atlantic Medical Supply
CORAL SPRINGS, Fla. — Valiant Health Care announced it will acquire Miami-based Atlantic Medical Supply in a common stock deal to expand its retail reach and become a "one stop provider" of home health care. Atlantic has been in business since 1993 serving the South Florida market.
According to a Valiant press release, both parties intend to negotiate the stock purchase agreement and close the transaction no later than six months from the signing of the term sheet. Specific terms of the purchase will be provided when the stock purchase agreement is completed and filed with the SEC.
Valiant's Accessible Home Health Care division includes 96 franchise units and one company-owned unit in 24 states, as well as in India and Kenya.
Via Christi Adds Another HME Location
WICHITA, Kan. — Another HME location for Via Christi Health makes a half-dozen for the Kansas-based hospital system. The new 600-sq.-ft. retail site sits next to Wichita Hospital, with both occupying the same street.
According to hospital officials, products and services include oxygen, home ventilation and sleep therapy management services. Via Christi Home Medical and Via Christi Home Health have served Wichita and surrounding communities for more than two decades.