Orlando, Fla.
After delaying the release of its first quarter financial results, in July Rotech Healthcare reported a net loss of $3 million for the first quarter of 2005. For the same period last year, the respiratory and DME provider reported net earnings of $9.1 million.
Net revenues for the first quarter, which ended March 31, were $123.3 million versus net revenues of $133 million for the same period in 2004.
Rotech delayed reporting its results after it said errors were found in previous financial statements calculating reserves for contractual allowances and bad debt.
After emerging from bankruptcy in 2003, earlier this year Rotech announced that it now has a “competitive cost structure in the marketplace” and is shifting its focus from turnaround activities to growing revenue and patient care.
“Significant time and investment has been, and will continue to be made in re-establishing growth and refocusing the company's culture towards patient care. The year has started well with six successive months of increases in the core oxygen patient count,” Rotech President and CEO Philip L. Carter said in a company statement.
Because of this growth, Carter said he expects to report higher revenue for the second quarter, despite oxygen reimbursement reductions of about 9 percent in April.
