- March 7, 2014
FORT MYERS — Radiation Therapy Services says a drop in prostate-cancer treatments and lower insurance reimbursements contributed to lower revenues and profits in the first quarter.
Radiation Therapy, which operates 127 cancer-treatment centers in the U.S. and Latin America, posted a net loss of $19.4 million on revenues of $172 million in the first quarter ending March 31. That compares with a net loss of $8.4 million on revenues of $175.5 million in the same quarter one year ago.
Despite the declines in prostate-cancer volumes and lower insurance reimbursements, Radiation Therapy officials say they are hopeful conditions have stabilized.
“The declines to prostate treatment volumes from 2012 continue to improve, confirming the trend we saw in the first two months of the year,” says Daniel Dosoretz, president and CEO, in a statement. “While we do expect these declines to persist in the near term, we are cautiously optimistic that they peaked in late 2012 and will level off in mid- to late-2013.”
Dosoretz says the company will continue to make acquisitions, including spending $25 million for two undisclosed centers. “We have accelerated our business development activity with incremental organic growth and expansion,” Dosoretz says in the statement.
Radiation Therapy operates 127 treatment centers, including 96 centers located in 15 U.S. states and clustered in 28 local markets. The company also operates 31 centers in six countries in Latin America.