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US Oncology Reports 2009 Fourth Quarter and Year End Operating Results
Date:2/25/2010

="xn-money">$16.9 million, or 8.9 percent, primarily due to earnings associated with revenue growth and an increase in drug margins in the current period from the conversion of a particular chemotherapy drug to generic status.  

For 2009, revenue in the medical oncology services segment increased by $149.5 million, or 6.6 percent, to $2.4 billion as compared to 2008.  The revenue growth is primarily due to higher average daily visits reflecting both physician additions and increased same market productivity.  For 2009, medical oncology services Adjusted EBITDA decreased to $71.3 million, by $1.9 million, or 2.6 percent as compared to 2008.  Partially offsetting the revenue increase associated with higher patient volumes, and contributing to the Adjusted EBITDA decline were higher management fee rebates earned under our incentive programs for efficient capital use by affiliated practices ($4.5 million), the impact of declining ESA drug utilization ($2.9 million) and higher personnel and operating expenses associated with patient visit growth ($9.5 million).

We continue to experience a shift of certain branded single source drugs to generic status.  For each generic drug introduced to the market, earnings temporarily increase because drug costs decline significantly, while reimbursement remains at the branded price
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SOURCE US Oncology, Inc.
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