Apria Expects Lower Revenue This Year

Apria Healthcare Group Inc. said Medicare cuts in payments for home-oxygen therapy will reduce its revenue and operating income by up to $60 million this year. The 1997 balanced-budget law reduced Medicare payments for home oxygen therapy by 25% this year. “The estimated decrease in 1998 revenue and operating income resulting from this reimbursement reduction is $55 million to $60 million,” Apria said in its annual report filed with the Securities and Exchange Commission. The company received 30% of its net revenue last year from Medicare, the government health insurance program for the elderly. About 19.5% of its net revenue last year came from Medicare reimbursement for home-oxygen therapy services, according to the annual report.