Reimbursement Pressures Drag Amedisys Earnings Down 51% in Q4
Home health and hospice company Amedisys, Inc. (NASDAQ:AMED) reported a net income of $7.2 million for the fourth quarter ended Dec. 31, 2012 on an adjusted basis, a 50.5% decrease from the previous year’s fourth quarter proceeds of $14.5 million.
For all of 2012, earnings attributable to Amedisys were down nearly 51% to $32.8 million.
Net service revenues decreased 2% to $362.9 million for the fourth quarter, while full-year revenues increased 1.7% to nearly $1.49 million.
“In 2012, we faced another year of significant reimbursement cuts, slow industry growth, and limited acquisition opportunities,” said William Borne, CEO, in a statement. “Yet, in addition to achieving guidance, we had a number of accomplishments including stabilizing our Medicare home health admissions, increasing our managed care business, lowering operating costs in the face of declining volumes, continuing development of our next generation operating system, and improving our capital structure.”
Looking ahead to 2013, Borne continued, Amedisys will focus on growth, operational efficiency, and clinical excellence, along with making “significant” investments in technology and evolving its model of care.
“This differentiating strategy recognizes the changes taking place within the health care industry,” Borne said. “We believe these investments will yield positive long-term results for our patients, our partners, employees and shareholders.”
For 2013, Amedisys is anticipating net service revenue to range between $1.425 billion to $1.45 billion. Analysts had expected revenues of $1.51 billion.
Diluted earnings per share is expected to be in the range of $0.60 to $0.70 based on an estimated outstanding 31.5 million shares.
The guidance includes the expectation that the 2% Medicare sequestration will go into effect April 1, 2013 on any admissions starting on or after that date, along with an estimate of legal costs associated with the company’s ongoing government investigations.
Written by Alyssa Gerace