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LifeCare Holdings, Inc. Announces First Quarter Results
Date:5/15/2009

PLANO, Tex., May 15 /PRNewswire/ -- LifeCare Holdings, Inc. (the "Company") today announced its operating results for the first quarter ended March 31, 2009.

Net Revenues

Our net patient service revenue increased by $6.2 million, or 7.1%, for the three months ended March 31, 2009, to $95.0 million from $88.8 million for the comparable period in 2008. Patient days in the 2009 period were 2,574, or 4.2%, less than the same period in 2008, while admissions were 2,165, or 4.5%, less than the same period in 2008.

The increase in our net patient service revenue was comprised of a favorable benefit of $9.9 million as the result of higher rates on a per patient day basis offset by an unfavorable variance of $3.7 million from the decrease in patient days. During the three months ended March 31, 2009, our net patient service revenue per patient day was $1,607, which represented an increase of 11.8% compared to the same period in 2008. The increase in net patient service revenue on a per patient day basis during the 2009 period was primarily the result of annual inflationary increases in our standard charge rates and certain of our contracts with commercial payors, an increase in the percentage of our revenues generated from commercial payors, a higher acuity level of the patients treated in the 2009 period, and the marginal increases contained in recent annual regulatory updates implemented by the Centers for Medicare & Medicaid Services during 2008.

Expenses

Total expenses increased by $0.9 million to $92.4 million for the three months ended March 31, 2009 as compared to $91.5 million for the same period in 2008. This increase of $0.9 million was primarily due to a $2.1 million increase in salaries, wages and benefits, partially offset by a $1.5 million decrease in net interest expense. The increase in salaries, wages and benefits was primarily attri
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SOURCE LifeCare Holdings, Inc.
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