CLEARWATER, Fla. — Last week Lincare Holdings reported net revenues for the quarter ended March 31 of $371.7 million, down 10.5 percent from $415.4 million for the first quarter of 2008.
Net income for the quarter was $26 million, or 36 cents a share, compared to net income of $58.2 million, or 76 cents a share, a year earlier.
The results were impacted by "dramatic reductions" in Medicare reimbursements, a company release said, citing the 9.5 percent cut on certain DME and the 36-month cap on oxygen that took effect Jan. 1. The release also noted lower ASP (average sales price) reimbursements for respiratory medicines, primarily albuterol. Drug reimbursements for the 2009 quarter were $22 million less than in the same period last year.
Lincare did not alter its estimate of the full-year impact of the Medicare changes, which it said in February would be $240 to $255 million (see Lincare Predicts Rough 2009, Feb. 23). The company serves more than 700,000 customers in 48 states through 1,056 locations.
"The Medicare changes effective as of January 1 of this year have had an enormous impact on our business," John Byrnes, Lincare CEO, said in the release. "We are confident that we are uniquely positioned to gain market share in our core respiratory business as our competitors struggle to deal with the severe financial consequences of the Medicare cuts."