ELMWOOD PARK, N.J., Nov. 27, 2013 (GLOBE NEWSWIRE) -- BioReference Laboratories, Inc. (Nasdaq:BRLI) today provided a preview of revenues and earnings per share expected for its FY13 and Q4FY13.
Despite continued strong volume growth, the Company believes there is an ongoing recalibration of reimbursement for the industry, which has resulted in substantial downward pressure from many payers regarding reimbursement in FY13. In addition, increased infrastructure expenses related to upgrading acquisitions in Florida and California and the launch of the Company's inherited cancer program that occurred too late in the period to meaningfully contribute to revenue in Q4FY13 also contributed to the results and for the quarter as well as guidance for the upcoming Fiscal Year.
Over the past year, the Company has had to negotiate contract modifications to reimbursement rates, conditions of payment and / or eligibility with dozens of health plans representing a substantial numbers of lives nationwide; most of these changes became effective toward the end of FY13 and especially in Q4FY13. The Company believes factors contributing to such pressure include the CMS proposed changes to reimbursements in July 2013, the changes in the Blue Card program, the tumult created in healthcare by the challenges of, and to, the Affordable Care Act and the three-week shutdown of the government.In addition to reimbursement changes, the Company had significant additional expenses during the quarter resulting from several factors. The Company completed infrastructure expansions related to acquisitions in Florida and California, which the Company anticipates will result in an extraordinary one-time expense without offsetting revenue generation. Going forward, however, the Company expects to realize efficiencies and growth from the expanded infrastructure. There were also substantial start-up costs related to its GeneDx inherited cancer program, which includes tests for the BRCA genes; these expenses include substantial legal expenses associated with the roll-out and on-going defense of this program. The program was announced in late August and the Company has received highly favorable provider response and indications of acceptance. Nonetheless, the program did not have time to meaningfully contribute to Q4FY13 revenues although the Company anticipates this will be a strong program throughout FY2014.