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US Oncology Reports Second Quarter Operating Results
Date:8/6/2009

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Medical Oncology Services

During the second quarter of 2009, medical oncology services revenue was $605.6 million, an increase of $46.3 million, or 8.3 percent, from the second quarter of 2008 which reflects higher medical oncology visits due primarily to physician additions. Revenue growth was partially offset by lower utilization of ESAs by affiliated physicians. Comparing the same periods, EBITDA was $17.2 million, a decrease of $3.5 million, as reduced utilization of ESAs and the impact of increasing costs for certain pharmaceuticals that have not yet been reflected in increased ASP-based reimbursement more than offset earnings associated with revenue growth. We are also experiencing a shift toward generic alternatives for certain oncology pharmaceuticals and the associated pressures on reimbursement and drug margins. We expect that this trend toward greater use of generic oncology drugs will continue for the foreseeable future.

Medical oncology services revenue increased by $23.7 million, or 4.1 percent, and EBITDA increased by $0.6 million from the first quarter of 2009. Seasonal reimbursement, as well as an additional operating day, contributed to this revenue and earnings growth. The impact of increasing patient responsibility for treatment costs in the first quarter generally stabilized in the current period.

Cancer Center Services

Cancer center services revenue in the second quarter of 2009 was $97.1 million, an increase of $4.9 million, or 5.3 percent, from the second quarter of 2008. EBITDA was $34.6 million in the second quarter of 2009, an increase of $2.8 million, or 8.8 percent, from the second quarter of 2008. These increases reflect higher radiation treatment and diagnostic scan volumes due primarily to additional radiation oncologists affiliated under comprehensive service agreements, a continued shift toward advanced targeted r
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SOURCE US Oncology, Inc.
Copyright©2009 PR Newswire.
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