With ongoing discussion about the tough economic times, Medicare cuts through it’s controversial National Competitive Bidding program, it is good to see that the homecare industry is showing renewed growth in several areas. Here is a brief look at the latest results from sleep product manufacturer Resmed, homecare manufacturer Invacare and Lincare – a homecare service provider in the US.
The latest of these is Resmed with growth of 16% in revenues over the quarter ended June 30, 2009.
Kieran T. Gallahue, President and Chief Executive Officer, commented, “In the fourth quarter of fiscal 2010, we continued to show strong growth year-over-year in the Americas, as well as in international markets. Our favorable mix of product sales and market share gains led to a 20% revenue increase in the Americas over the prior year’s quarter, resulting in $160.9 million in sales. Revenue outside the Americas increased by 11% to $130.7 million over the prior year’s quarter, or a 16% increase on a constant currency basis. Globally, our growth in flow generators was mainly driven by strong sales of the new S9(TM) AutoSet and Elite products. Mask sales were particularly robust this quarter across all categories and across all geographies. Operating profit for the June quarter was $68.6 million and cash flow from operations was $59.0 million, demonstrating excellent operating performance.
Homecare manufacturer Invacare also recently reported renewed organic growth (PDF)
Commenting on Invacare’s 2010 second quarter results, Gerald B. Blouch, interim Chief Executive Officer,
stated, “Invacare delivered strong results in three key areas. First, adjusted earnings per share(a) for the
quarter increased 30% over the second quarter last year to $0.39. This dramatic improvement is attributed
principally to net sales growth, gross margin improvement, and lower interest expense related to the
paydown of debt. Second, the Company reported a 2.7% increase in organic net sales over the second
quarter of last year, returning to growth for the quarter. Third, Invacare generated free cash flow(d) of $40
million, which was above the Company’s internal plan for the quarter.”
Homecare service provider Lincare also experienced good growth of 10% however signaled a warning about the upcoming Medicare NCB program.
John P. Byrnes, Lincare’s Chief Executive Officer, said, “We are pleased with Lincare’s operating and financial performance in the first half of 2010.”
Mr. Byrnes added, “The Centers for Medicare and Medicaid Services (CMS) recently announced the results of a new Competitive Bidding Program for items of durable medical equipment (DME) and related services in nine metropolitan markets commencing in 2011. The program restricts access to DME items for Medicare beneficiaries to a limited number of providers that CMS selects based on the lowest bid prices submitted. CMS has announced average savings of approximately 32% off the current payment rates for those items in the nine markets.”
All in all strong improved performance, with the inevitable warning about NCB at the end.
