Cuts in Medicare payments took their toll on Lake Forest-based Apria Healthcare Group Inc.’s second-quarter earnings.
The home healthcare provider said on Thursday that profit for the quarter was $22.8 million, off 20% from a year ago.
The profit showing was in line with analyst expectations.
Revenue for the quarter rose 4% to $374 million.
For the year, Apria said it sees revenue growth of about 5%, tempered by lower Medicare reimbursements.
Apria Chief Executive Larry Higby has said he sees an opportunity in falling Medicare payments as a result of the Medicare Prescription Drug, Improvement and Modernization Act.
The changes make for a market ripe for shakeout and consolidation,and more acquisitions for Apria.
During the second quarter, Apria made seven acquisitions worth $67.3 million, the company said.
For now, though, Apria is wrestling with the impact of lower Medicare payments, which make up about a third of its business.
In the first quarter, the company’s profit was off 9% from a year earlier. Lower Medicare payments took effect Jan. 1.
Last month, Apria said it hired Morgan Stanley as a first step toward possibly being acquired. The company said it has received a number of potential buyout offers.
