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American Renal Associates increases operating revenues by 10% in first quarter

Issue: July 2018

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American Renal Associates reported at its earnings call on May 8 that net patient service operating revenues increased 10% to $194.7 million compared to the same quarter last year.

Operating revenues were up primarily due to treatment growth and reimbursement of certain pharmaceuticals under the Medicare ESRD PPS transitional drug add-on payment adjustment, which became effective Jan. 1, 2018, the company said in a statement. Adjusted net income attributable to American Renal Associates Holdings Inc. was $3.8 million, or $0.11 per share, for the first quarter of 2018.

“We are pleased that the company’s first-quarter 2018 performance represented a return to year-over-year growth in terms of revenue, adjusted EBITDA-NCI and adjusted net income attributable to American Renal Associates Holdings, Inc. per share,” Joseph (Joe) Carlucci, chairman and CEO, said in a statement. “We expect to continue to deliver growth in 2018, driven by a more sustainable cost structure, continued execution on our development program, treatment growth and the new coverage policy for calcimimetic pharmaceuticals. We are proud that our partnership model continues to be differentiated by strong quality metrics and outstanding patient satisfaction rates.”

The company said dialysis treatments increased 5.2% in the first quarter to 558,936 compared to treatments in the first quarter of 2017, of which 4.2% was non-acquired growth. The company reported that patient care costs for the first quarter of 2018 were $133.7 million, or 68.7% of patient service operating revenues. General and administrative expenses were $25 million, or 12.8% of patient service operating revenues. The company spent $6.9 million for expansions and new clinic development.

As of March 31, the company operated 228 outpatient dialysis centers that served approximately 15,700 patients and had 28 signed clinics scheduled to open in the future.

ir.americanrenal.com/news-releases/2018/05-08-2018-210659128