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Northstar Management Forecasts a Loss of $1.2 Million for 2010 at Its Palladium for Surgery -- Houston, Ltd. Centre
Date:3/1/2010

HOUSTON, March 1 /PRNewswire/ -- Despite Northstar management's recent claim that Mr. Kovnat's petition was frivolous; the same management team has just forecast a $1.2 million loss for 2010 at the Palladium for Surgery -- Houston, Ltd. ("Palladium").  Northstar, following its announcement of a deal with United Healthcare, Inc. late last fall, claimed that although the per case revenue would go down, the volume of cases was expected to increase dramatically.  At the time, Palladium was handling approximately 225 cases per month.  Northstar's forecast, issued just last week, is based on just 75 cases per month at Palladium. The real numbers for January and February 2010 were in fact significantly lower.  Paragraph 16 of Mr. Kovnat's petition was revised to add the following:

"…Indeed, Palladium's management projects that in spite of these drastic cuts, 2010 revenues will plunge by more than 70% compared to 2009, and Palladium will lose over $1.2 million in 2010."

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SOURCE Brad Kovnat
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