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LifeCare Holdings, Inc. Announces Third Quarter Results
Date:11/13/2009

PLANO, Texas, Nov. 13 /PRNewswire/ -- LifeCare Holdings, Inc. (the "Company") today announced its operating results for the quarter ended September 30, 2009.

Three Months Ended September 30, 2009

Net Revenues

Our net patient service revenue increased by $1.9 million, or 2.3%, for the three months ended September 30, 2009, to $84.3 million from $82.4 million for the comparable period in 2008. Patient days and admissions decreased by 4.4% and 7.2%, respectively, during the three months ended September 30, 2009 as compared to the same period in 2008.

The $1.9 million increase in net patient service revenue was comprised of a $0.2 million increase in adjustments related to changes in estimates and settlements on cost reports previously filed with the Medicare program, offset by an unfavorable variance of $3.7 million attributable to the decrease in patient days, with a remaining increase of $5.4 million attributable to an increase in revenue per patient day.

During the three months ended September 30, 2009 our net patient service revenue per patient day was $1,594, as compared to $1,489 for the 2008 period, an increase of 7.1%. 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, a higher acuity level of the patients treated in the 2009 period, and the marginal increases contained in recent annual regulatory updates implemented by CMS during 2008.

Expenses

Total expenses decreased by $1.9 million to $85.6 million for the three months ended September 30, 2009 as compared to $87.5 million for the comparable period in 2008. The decrease of $1.9 million was primarily the result of a decrease of $0.5 million in salaries, wages and benefits, a decrease of $1.6 mil
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SOURCE LifeCare Holdings, Inc.
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