CLEARWATER and ORLANDO, Fla.--Following Apria Healthcare's recent announcement of decreased revenues for 2005--with net income for the year at $66.9 million compared to $114 million in 2004--respiratory providers Lincare Holdings and Rotech Healthcare also have reported year-end results they said were negatively affected by reimbursement cuts to respiratory meds, DME and home oxygen.

Clearwater, Fla.-based Lincare, which has 625,000 customers in 47 states, said revenues for the year ended Dec. 31 were $1.267 billion compared to $1.269 billion in 2004. Net income for the year was $213.7 million, down 22 percent from $273.4 million the prior year. According to a statement, the company estimates that annual revenues were reduced by $188.2 million as a result of Medicare price changes for respiratory medications and some DME that took effect on Jan. 1, 2005, and for oxygen equipment that took effect April 1.

Lincare CEO John Byrnes said the company continues to gain market share in its core respiratory business and is controlling costs and reinvesting capital to sustain growth. During the year, Lincare acquired 15 companies with annual revenues of approximately $68 million. The company also added 79 operating centers, with 45 derived from internal expansion and 34 from acquisitions, bringing the total number of locations to 883 at the end of 2005.

And last week, Rotech, headquartered in Orlando, reported net revenues of $533.2 million for 2005 versus $535.3 million for 2004. The company said net earnings were $5.5 million for the year compared to $36 million for 2004. Respiratory therapy equipment and services represented 87.8 percent and DME 11.2 percent of its total revenues for the year, according to a company statement.

Rotech provides equipment and services in 48 states with approximately 485 branches, located principally in non-urban markets.