Headline News
AHP Struggles Continue with Losses for Q4, Year
BRENTWOOD, Tenn. — On Thursday, American HomePatient reported losses for the fourth quarter and the year.
Revenues for the quarter ended Dec. 31 were $61.3 million compared to $67.8 million for the fourth quarter of 2008, a 9.6 percent decrease. Revenues for the year were $236.3 million compared to $266.9 million in 2008, an 11.5 percent drop.
The giant provider, which operates in 33 states, blamed Medicare reimbursement cuts that took effect in January 2009 for the losses. The company said further revenue reductions resulted from policy changes related to coverage for PAP devices, a change in inhalation drug product mix and its reduced emphasis on less profitable product lines such as non-respiratory DME and infusion therapy.
Operating expenses declined in the fourth quarter by approximately $1.6 million, or 4.9 percent, and for the year by $8 million, or 6 percent. These decreases, the company said, were primarily the result of improved efficiencies including centralization of branch functions, consolidation of branches, improved routing and delivery systems and more effective utilization of leased space.
In February, the company entered into an eighth forbearance agreement with NexBank SSB on $226.4 million in debt that was due to be repaid Aug. 1, 2009. The latest agreement expires March 16.
AHP said it is making monthly interest payments on the debt and continues to work with lenders toward a resolution. "However, there can be no assurance a resolution will be reached with favorable terms to the company and its stockholders or at all," the company said.
