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IPC The Hospitalist Company Reports Second Quarter 2009 Results
Date:8/6/2009

rter of this year. Importantly, by leveraging our expenses across a larger revenue base, we have been able to substantially improve our operating margin, which increased by 130 basis points to 9.4% for the quarter and by 120 basis points to 9.7% for the year-to-date period. In addition, our strong cash flow has enabled us to pay off all of our outstanding debt in June of this year."

Dr. Singer added, "In line with our growth strategy, we have completed five acquisitions to date in 2009, including our latest in-market acquisition in Tampa, which we announced today. This acquisition adds 51,000 annual encounters and strengthens our position in the important Florida market. We continue to build our national footprint, expanding into our 19th state with our New Jersey acquisition in June of this year. 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."

Dr. Singer concluded, "While the outcome of healthcare reform remains uncertain, we continue to believe that larger physician organizations will be in a better position to participate in whatever new delivery or payment systems evolve in the healthcare arena. There is clearly a trend toward paying for quality. As a segment of healthcare that provides quality outcomes for reduced costs, we believe any restructuring will recognize that contribution. Also, we expect potential expansion of health insurance coverage to a larger portion of the population to increase our reimbursement."

Second Quarter 2009

Patient encounters for the three months ended June 30, 2009 increased 20.6% to 796,000, compared to 660,000 for the same period last year. Net revenue for the three months ended June 30, 2009 was $74.8 m
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SOURCE IPC The Hospitalist Company, Inc.
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