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Rural/Metro Announces Results for Fiscal 2008 First Quarter; Fiscal 2007 Fourth Quarter and Full Year
Date:11/14/2007

ve Officer, said, "During the fourth quarter of fiscal 2007 and the first quarter of fiscal 2008, we continued to produce steady year-over-year growth in net revenue through new contract wins, renewals, and same-market expansion efforts; to execute on key strategies to minimize exposure to uncompensated care; and to generate predictable cash flows, as the initiatives we are implementing to improve ambulance collections continue to gain momentum.

"We continued to trend positively with respect to our ongoing efforts to improve collections and made significant strides in the key operating metrics we use to measure uncompensated care," Mr. Brucker said. "During the first quarter, we were also successful in increasing ambulance subsidies by $0.9 million over the prior year to help offset uncompensated care related to uninsured patients."

The Company's results reflected significant progress in key operating metrics related to uncompensated care. Since the three months ended March 31, 2007, when the Company began implementation of seven new initiatives designed to minimize exposure to uncompensated care, it has achieved the following:

* APC increased by $22 per transport to $348 in the first quarter of

fiscal 2008 from $326 in the fiscal 2007 third quarter ended March 31,

2007.

* DSO, a measurement of the average time it takes to collect per

transport, improved by three days, to 64 days in the first quarter of

fiscal 2008 from 67 days in the fiscal 2007 third quarter.

* Uncompensated care as a percentage of gross revenue improved to 15.0

percent in the first quarter from 15.2 percent in the third quarter

ended March 31, 2007.

Mr. Brucker continued, "These initiatives have driven reductions in contractual allowances and decreases in write-offs for uncompensated care, resulting in a 2.1 percent increase in overall ambulance collection rates. We view this as a significant improvement in unco
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SOURCE Rural/Metro Corporation
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