8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
February 2, 2005

HearUSA, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-11655	22-2748248
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1250 Northpoint Parkway
West Palm Beach, Florida	33407
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:       (561) 478-8770      

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02   Results of Operations and Financial Condition

On February 2, 2005, HearUSA, Inc. (the “Company”) will host a conference call relating to January 2005 revenues and discussing certain fiscal year 2004 financial results. A copy of the conference call script is furnished with this Form 8-K as Exhibit 99.1.

The attached script contains forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995, including those concerning the Company’s expectations that 2005 fiscal year revenues will exceed $80 million; that 2005 will be the Company’s first profitable year; that the Company expects to generate almost 60% of its 2005 revenues from contracts with healthcare providers; that the source of the balance of revenue will be traditional private pay patients; that the Company will continually increase the percentage of business derived from the “medical” side of the industry; that Hearx and Hearx West centers with additional staff and increased patient flow could generate at least $1.5 million per annum per center; that Helix and HearUSA centers with additional staff and increased patient flow could generate approximately $600,000 in annual revenue per center; that growth in the membership of contracted healthcare providers will provide the largest percentage growth over the next 12-18 months; that patients will continue to shift from Medicare to Medicare managed care; and that the Company’s combination of centers and audiologists will allow it a unique opportunity to seek additional contracts with Medicare managed care organizations. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as market demand for the Company’s goods and services; changes to the Company’s run rate; success of new and expanded healthcare provider contracts; effects of the Medicare Prescription Drug Improvement and Modernization Act; changes in the pricing environment; general economic conditions in those geographic regions where the Company’s centers are located; the impact of competitive products; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the 2003 fiscal year.

Item 7.01.   Regulation FD Disclosure

On February 2, 2005, the Company issued a press release relating to January 2005 revenues. A copy of the press release is furnished with this Form 8-K as Exhibit 99.2.

The information included in Item 2.02 above is incorporated by reference into this Item 7.01.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HearUSA, Inc. (Registrant)
Date: February 2, 2005	By:	/s/ Stephen J. Hansbrough
		Name:	Stephen J. Hansbrough
		Title:	Chief Executive Officer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1   99.2	February 2, 2005 conference call script.   Press release issued February 2, 2005.

EX-99.1

Exhibit 99.1

Conference Call February 2, 2005 – 9:00 A.M.

     Good morning everyone.

     Our remarks today include forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties are described in the company’s current report on Form 8-K filed today with the SEC. These forward-looking statements represent the company’s judgment as of the date of this call.

     Earlier today we released results for the month of January. Revenues for January increased approximately 14% to more than $4.5 million from $3.9 million from January of 2004. We are on target with the previously issued guidance that revenues will exceed $80 million for fiscal 2005 and our expectation that 2005 will be our first profitable year.

     In this morning’s call, I would like to provide you with a better understanding of how we have organized our company-owned centers and our network of audiologists. The Company was established with a goal of becoming a “medical business” with “retail overtones”. As a result of the recently announced new and expanded contracts for 2005, the company expects to generate almost 60% of our annual revenues in 2005 as a result of contracts with healthcare providers. The balance will come from traditional private pay patients. The combination of our 154 company-owned centers and 1,400 provider locations in our hearing care network I believe will allow us to continually increase the percentage of business derived from the “medical” side of this industry.

     Although the corporation changed its name to HearUSA in 2002, our centers operate under different names in different geographic markets. The original 58 centers in Florida, New York and New Jersey are HEARx centers. The average size of these centers is approximately 2,500 square feet. Based on the number of examining rooms with soundproof booths and associated testing equipment, these facilities with additional staff and increased patient flow could generate approximately $1.5 million per annum per center. In 2004 average revenue per center was $525,000. The 22 Southern California centers, which is our joint venture with Kaiser Permanente, operate as HEARx West and have been built on the same model as the HEARx centers. The HEARx West centers generated approximately $834,000 in annual revenue per center

in 2004. Of the remaining centers, 19 are in Ontario, Canada and are operated as Helix. These centers are approximately 1,000 square feet and, once again, with additional staff and patient flow could generate approximately $600,000 in annual revenue per center compared to the average annual revenue per center of $358,000 in 2004. The remaining 55 centers known as HearUSA are scattered in seven U. S. States and basically conform to the same facility model as the Helix centers. In 2004 the average revenue for the HearUSA centers was approximately $282,000.

     With excess capacity in all of our centers, the goal for the company is to increase market share through marketing and/or “roll in” acquisitions. In this type of acquisition, the company basically acquires a “customer list” not a facility. The patients are then serviced by our existing company-owned centers. As I mentioned on the last call, we expect most of the growth of the company over the next 12 – 18 months to come from increased membership from our contracted healthcare providers. This growth is a direct result of the new Medicare legislation enacted at the end of 2003. In fact, recently released numbers in Medicare Advantage News indicate that more than 900,000 patients shifted from Medicare to Medicare managed care since the end of 2004, bringing the current total to 5.5 million Medicare managed care patients. At the end of 2004, one third of these Medicare managed care patients were entitled to a funded hearing care benefit and more than one-half of these are serviced through one of our company-owned centers. Needless to say, we would like to see more of these Medicare managed care patients.

     The combination of our company-owned centers in 11 states and approximately 1,400 provider locations in 49 states should allow our company a unique opportunity to seek additional contracts with Medicare managed care organizations throughout the country.

     Revenue for the month of February will be discussed on a conference call at 9:00 A.M. on March 8, 2005.

EX-99.2

Exhibit 99.2

Company Contact:	The Investor Relations Company:
Paul A. Brown, M.D., Chairman	Brien Gately
(561) 478-8770, Ext. 123	(847) 296-4200

HearUSA REPORTS JANUARY REVENUES

     WEST PALM BEACH, Fla., February 2, 2005—HearUSA, Inc. (AMEX: EAR) today reported January 2005 revenues increased approximately 14% percent to more than $4.5 million from $3.9 million in January 2004. President and Chief Executive Officer Stephen J. Hansbrough stated “Based on the level of revenue for January, we are on target with our previously issued guidance that revenues will exceed $80 million for fiscal 2005 and our expectation that this year will be our first profitable year.”

About HearUSA

     HearUSA provides hearing care to patients whose health insurance and managed care organizations have contracted with the company for such care and to retail “self-pay” patients. The 154 company-owned centers are located in California, Florida, New York, New Jersey, Massachusetts, Ohio, Michigan, Wisconsin, Minnesota, Missouri and Washington and the province of Ontario Canada. In addition, the company has a network of 1,400 affiliated audiologists in 49 states. For further information, click on “investor information” at HearUSA’s website www.hearusa.com.

     This press release contains forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995, including that concerning the Company’s expectation that the 2005 results will exceed $80 million and that 2005 will be the Company’s first profitable year. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as market demand for the Company’s goods and services; changes in the pricing environment; general economic conditions in those geographic regions where the Company’s centers are located; the impact of competitive products; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the 2003 fiscal year.

     HearUSA will hold a webcast today at 9:00 A.M. Eastern Time to allow securities analysts and shareholders the opportunity to hear management discuss the company’s January results. The call is being webcast by Vcall and can be accessed at HearUSA’s website at www.hearusa.com or investors can access the webcast at http://www.vcall.com/EventPage.asp?ID=90499. The conference can also be listened to by telephone by dialing (toll free) 877-407-9210 (international) 201-689-8049.

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