“The company's financial results for the fourth quarter and year ended Dec. 31, 2009, were impacted by dramatic reductions in Medicare reimbursement for the company's primary product lines resulting from the implementation on Jan. 1, 2009, of previously enacted legislation,” according to a company news release.
The company also cited Medicare payment reductions of 9.5% for certain durable medical equipment items, including oxygen, additional regulated Medicare price reductions for stationary oxygen equipment of another 2.3% (for a total reduction of 11.8%), and the use of a new reimbursement methodology for oxygen equipment. The financial results also reflect lower reimbursement for certain respiratory medications under Medicare, Lincare said.
Lincare warned that it expects more of the same in 2010, as the CMS has implemented another lower monthly payment amount for stationary oxygen equipment. “As a result, the company estimates that net revenues and operating income in 2010 will be negatively impacted by approximately $9 million,” Lincare said in the news release.
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