FORT MYERS — Radiation Therapy Services posted preliminary results on Friday, reporting a net loss of $21.4 million on revenues of $167.5 million in the quarter ending Sept. 30.
The operator of cancer-treatment centers says Medicare reimbursement cuts of 15% to 20% for certain services will impact its financial results. However, those government reimbursement cuts are less than the 40% cuts that were initially proposed.
“We have a number of initiatives under way to help mitigate those effects, including cost reductions, improved managed care pricing, as well as growth through expansion and accretive acquisitions,” says Radiation Therapy President and CEO Daniel Dosoretz, in a statement.
In addition, the government recently published guidelines recommending against prostate-cancer screening tests for men with a life expectancy of more than 10 years. “The preliminary third quarter results we announced today reflect an increasingly challenging operating environment, as we saw meaningful declines in our treatments for prostate cancer,” says Dosoretz. “We believe these new guidelines are slowing the rate of men diagnosed and eventually referred to treatment regimens and having an impact on our treatment growth.”
Headquartered in Fort Myers, Radiation Therapy operates 126 treatment centers, including 94 in 15 U.S. states and 28 local markets. It also operates 31 centers in six Latin American countries and one in India.