Lake Forest-based Apria Healthcare Group Inc. took the unusual step Thursday of responding to a press release from Orlando, Fla.-based competitor Rotech Healthcare Inc. on Medicare reimbursement rates.
Investors hammered Rotech after the company said it would be hit by a proposed cut in federal reimbursement rates for Budesonide, a breathing drug. Shares of Rotech were down 32% in midday trading.
Apria and Rotech provide drugs, breathing equipment and other healthcare services to people at home. Many of their customers are Medicare recipients.
In a release, Apria said it wouldn’t be “materially impacted” by the new reimbursement rate for Budesonide. Its shares were off less than 1%.
Apria expects sales to be cut by just $3 million if the Budesonide rate change takes place. Its sales for the year are expected to be about $1.5 billion.
The company also backed its 2006 profit forecast of $73.6 million to $75.4 million, including stock option expensing.
Rotech, meanwhile, said its 2006 revenue would drop $30 million and its profits by $17.3 million if regulators upheld the new Budesonide rates.
The home healthcare company also said it believed the final rate wasn’t merited and was working with regulators to reverse the change.
Philip Carter, former chief executive of Apria, is now Rotech’s chief executive. Carter and current Apria Chief Executive Lawrence Higby worked together to turn Apria around in the late 1990s.
