ATLANTA--American HomePatient, Apria Healthcare, Lincare Holdings and Rotech Healthcare continue to feel the impact of CMS' reimbursement cuts. All four providers said Medicare reimbursement reductions negatively affected their revenues for the first quarter of the year ended March 31.

Brentwood, Tenn.-based American HomePatient, which has 263 centers, posted a net loss of $0.7 million for the period, compared to $1.2 million in net income for the same quarter in 2005. The company also said its revenues dropped to $80.5 million, $1 million less than the same period last year.

According to AHP, Medicare reimbursement reductions totaling approximately $4.2 million were primarily to blame. Otherwise, revenues would have increased approximately $3.2 million, or 4 percent, for the quarter, the company said. The company is currently considering an acquisition by one of its major shareholders, Highland Capital Management, which announced in February it wants to buy the provider, citing increasing disappointment with AHP's performance.

Apria, based in Lake Forest, Calif., with approximately 500 branches, reported net income at $16.1 million, a $9.1 million drop from the same period last year. Revenues were $368.1 million compared to $371.9 million for the first quarter of 2005. The impact of Medicare reductions versus the first quarter of 2005 was $8.4 million to revenues and $6.3 million to net income, the company said.

Clearwater, Fla.-based Lincare, with 883 locations, reported net income of $47.9 million, $6.7 million less than the first quarter last year. Revenues were $333.6 million, a 9 percent increase over revenues of $305.2 million for the same period in 2005.

With 484 branches, Rotech, Orlando, Fla., reported a net loss of $2.9 million, slightly better than last year's net loss of $3 million for the period. Net revenues rose to $132.5 million versus $123.3 million for the period last year. Medicare reimbursement reductions reduced revenues by approximately $11.25 million for the quarter, the company said.