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IPC The Hospitalist Company Reports Record First Quarter 2009 Results
Date:5/4/2009

to recruit new physicians to add to our existing practices. In the first quarter, we also completed two in-market acquisitions in Phoenix, which strengthened our foothold in one of our largest markets. Our acquisition pipeline remains robust in this highly fragmented industry, and we continue to evaluate opportunities across the hospitalist sector. We remain confident that we can continue to grow and penetrate current and new markets through this combination of organic growth and acquisitions. With less than 5% of our encounters coming from elective in-patient stays and uninsured patients remaining stable at approximately 7% of our encounters, we believe we are very well positioned in this challenging economic environment."

First Quarter 2009

IPC's first quarter 2009 patient encounters rose 18% to 810,000, compared to 684,000 in the same period last year. Net revenue for the first quarter was $76.1 million, an increase of $15.5 million, or 25.6%, from $60.6 million for the prior year quarter. Of this $15.5 million increase, $11.8 million, or 76.1%, was attributable to same-market area growth and $3.7 million was attributable to revenue generated from a new market acquisition, which was completed in the third quarter of 2008. The change in same-market area net revenue was the result of an 11.9% increase in patient encounters, a 5.9% increase in patient revenue per encounter and an increase in hospital contract revenue. The increase in patient revenue per encounter was partially due to an increase in Medicare reimbursement rates for the billing codes applicable to the services performed by the Company's hospitalists, as well as improvements in billing processes and collections.

Physician practice salaries, benefits and other expenses for the three months ended March 31, 2009 were $55.5 million, or 72.9%, of net revenue compared to $43.9 million, or 72.6%, of net revenue for the three months ended March 31, 2008. Ph
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SOURCE IPC The Hospitalist Company, Inc.
Copyright©2009 PR Newswire.
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