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Apria Healthcare Group Inc. Q1 2008 Earnings Call Transcript

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2008-05-13 13:05:13.0

Tags: Apria Healthcare Group Inc.

Question-and-Answer Session

Operator

(Operator Instructions)

Our first question comes from Gary Lieberman from Stanford Group. Your line is open.

Gary Lieberman - Stanford Group

Thanks. Good morning.

Larry Higby

Hi, Gary.

Gary Lieberman - Stanford Group

I was hoping maybe we should pick up on the last comment that Chris made just in terms of the $12 million from the respiratory impact in conjunction with the other operating results. I guess that means that there is some incremental benefit or pickup on other operating results. Could you maybe elaborate more on that?

Chris Karkenny

At this point, it's too early to tell how the remainder of the year is going to turn out. So, that's why we mentioned that we would not be going into the guidance and all.

Gary Lieberman - Stanford Group

Okay. But I mean just to try to get some more color there, if there was no combination with other operating results, is there or some kind of EPS impact that $12 million would equate to?

Chris Karkenny

No, sir, there was nothing in combination with our operating results. Certainly, there would be a negative impact. Anytime there is a reduction, there is a negative impact. But the other piece, as we mentioned, there are certain areas as Larry talked about on the addition or the reimbursement cuts, there are potential increases in revenue from some of the competitive bidding areas. And it's too early to tell how that's going to shape out in the remainder of the year.

Larry Higby

Well, with a lot of the initiatives we have underway right now, we just want to see how they develop throughout the year. We're really optimistic about them right now.

Gary Lieberman - Stanford Group

Okay. And then I guess just in terms of --.

Larry Higby

Also with the combination, as I mentioned in my remarks, of the integration between Coram and Apria, expect to be able to continue to have the strong purchasing power in the marketplace.

Gary Lieberman - Stanford Group

Okay. And then maybe just a follow-up on competitive bidding in terms of some of the efforts that the industry is pursuing in Washington. It sounds like there is a push to get competitive bidding part 1 and/or part 2 delayed. Is there, I guess, some sort of pay for that the industry would propose in terms of overall rates or some other kind of proposal that would still save money, but might go about it somewhat differently?

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