LAKE FOREST, Calif.--Apria Healthcare Group announced last week that its second-quarter earnings are up due in part to cost control measures.

Net income for the quarter ended June 30 increased to $18.5 million, up from $3 million a year earlier. The company said last year's second-quarter results were affected by a $20 million settlement of a government lawsuit over Medicare billing. Revenue rose slightly to $376.1 million from 2005's $374.9 million.

The 500-branch provider said this period's results were hurt by Medicare reimbursement reductions and related respiratory product cost increases, and now estimates sales growth for 2006 at 3 percent. However, collection and cost control initiatives have boosted savings, according to CEO Lawrence Higby.

"During late 2005 and early 2006, we have intently focused our efforts on improving our billing processes and implementing a credit card initiative, which has successfully increased the collection of patient co-pays," Higby said in a statement. "In addition, expenditures for patient service equipment reached an all-time low level, while days sales outstanding improved quarter-to-quarter by four days--two more indicators that suggest our cost control initiatives are on the right track."

The company also announced that Amin Khalifa is stepping down as chief financial officer effective Aug. 25 to take another position with a telecommunications company. Alicia Price, Apria's vice president and controller, will act as CFO until a replacement is found.