Rotech Healthcare Earnings Impacted by Medicare Claim Denials

Rotech Healthcare Inc. (OTCBB: ROHI) reported late Wednesday its financial results for the third quarter ended September 30, 2012, showing growth across key indicators and significant decreases in other revenue generators for the provider of home medical equipment and related products.

Net revenue was positively impacted by increases in oxygen patients (up 6 percent), Continuous Positive Airway Pressure (CPAP) rental patients (up 12 percent) and CPAP sales (up 7 percent) during the quarter. Organic patient growth and previously completed asset purchase transactions contributed approximately $2.7 million and $0.7 million, respectively, to net revenue.

Negative impacts to net revenue were the result of lower nebulizer medication volume and reimbursement (down $1.8 million); decreases from higher rates of contractual/revenue adjustments (down $3.2 million); patients being shifter to non-billable status primarily as a result of Medicare claim denials from pre-payment and post-payment audits (down $3.3 million); Medicare oxygen patients reaching their 36 month rental cap (down $3.5 million); lower sales in non-core product lines (down $200,000).

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amoritzation) decreased to $21.4 million in the latest quarter from $27.7 million in the year prior quarter. For the first nine months of 2012, adjusted EBITDA decreased to $65.7 million from $84.1 million for the nine months ended September 30, 2011.

“Patient growth for our key product lines continues to be good, and our efforts to reduce adjustments for contractuals and bad debt are beginning to have a positive impact,” said Philip Carter, President and CEO at Orlando, Florida-based Rotech. “Planning for 2013 is well underway to position the Company for improved financial performance for the year ahead,” Mr. Carter added.

The company ended the latest quarter with services in 49 states through 410 operating locations.

Shares closed Wednesday down 1.67 percent at 67 cents. Shares have lost about 48 percent of their value since the start of 2012 with highs of $2.05 in February and lows of 26 cents in September.

Rotech Healthcare (ROHI) Stock Quote and News:

Disclaimer: Neither www.otcshowcase.com nor its officers, directors, partners, employees or anyone involved in the publication of the website or newsletters (“us” or “we”) is a registered investment adviser or licensed broker-dealer in any jurisdiction whatsoever. Further, we are not qualified to provide any investment advice and we make no recommendation to purchase or sell any securities. The prior article is published as information only for our readers. otcshowcase.com is a third party publisher of news and research. Our site does not make recommendations, but offers information portals to research news, articles, stock lists and recent research. Nothing on our site should be construed as an offer or solicitation to buy or sell products or securities. This site is sometimes compensated by featured companies, news submissions and online advertising. Viper Enterprises, LLC (parent company of OTC Showcase) has received no compensation for this article and owns no shares of the aforementioned company(ies). Please read and fully understand our entire disclaimer at http://www.otcshowcase.com/about-2/disclaimer.

0 comments

Add your comment

Commenting is allowed only for registered users.

Other articlesgo to homepage

	Hearing Date Set in Blue Calypso Lawsuit Against LivingSocial(0) Blue Calypso Inc. (OTCBB: BCYP), an innovator in digital social advertising, mobile content syndication, and analytics, recently announced a Markman hearing set for August 27, 2013 in its patent infringement case against LivingSocial. Findings from this hearing may encourage settlements or provide insight into the likelihood of a particular outcome. With the success seen by

	Digital Development Group Partners with Hollywood Bad Boy Charlie Sheen(0) One might think that celebrity endorsements would be fantastic for the share price of a small or microcap company. After all, famous and successful athletes or movie stars have a stack of cash to invest and the connections to help accelerate business developments. Oddly, though, it doesn’t seem to have a great deal of impact.

	Sunvalley Solar Shares Rise from Bottom on Solar Installation Contract(0) Shares of Sunvalley Solar, Inc. (OTCBB: SSOL) are rising in trading Monday morning after the solar power technology company disclosed a new contract to 87.5-kilowatt solar system installation contract from Corporate Logistics in City of Industry, California. The contract is for a system capable of generating 131,146 kilowatt hours of electrical power each year, utilizing

	Men’s Health Features Naked Brand Group Line of Underwear(0) Naked Brand Group, Inc. (OTCQB: NAKD) said Friday that its Naked Boxer Brief has been selected by Men’s Health for its online guide, “Affordable Spring Style Guide 100 under $100.” The guide was published on MensHealth.com on March 20. This is the second time the company has been featured in the men’s mag in as

	Sunshine Biopharma Meeting with CMOs to Manufacture Drug for Breast Cancer Trials(0) Sunshine Biopharma Inc. (OTCQB: SBFM) reported on Thursday that it is in negotiations with Contract Manufacturing Organizations, or CMOs, as the next progression towards the anticipated clinical trials of its flagship cancer drug, Adva-27a, against multi-drug resistant forms of breast cancer. The trials are scheduled to be hosted by the leading cancer center Jewish General

Stay Informed

Diabetes Rate Growing Exponentially

According to the International Diabetes Federation, more than 500 million people will be diagnosed with diabetes in the next two decades, a more than 50 percent increase from today. Technologies are available presently to help manage the frequency, complications and costs associated with diabetes. Read the complete article to learn more.