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

mates and settlements on cost reports previously filed with the Medicare program, offset by an unfavorable variance of $10.7 million attributable to the decrease in patient days, with a remaining increase of $20.9 million attributable to an increase in revenue per patient day. The net increase of $2.9 million for adjustments to previously filed cost reports was comprised of a favorable adjustment of $1.3 million recorded in the nine months ended September 30, 2009 offset by an unfavorable adjustment of $1.6 million recorded in the nine months ended September 30, 2008.

During the nine months ended September 30, 2009 and 2008, our net patient service revenue per patient day was $1,597 and $1,457, respectively. However, exclusive of the cost report reimbursement adjustments discussed previously, net patient service revenue per patient day for the nine months ended September 30, 2009 and 2008 was $1,589 and $1,466, respectively, or an increase of 8.4%. 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, an increase in the percentage of our revenues generated from 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 increased by $2.2 million to $271.7 million for the nine months ended September 30, 2009 as compared to $269.5 million for the comparable period in 2008. The increase of $2.2 million in total expenses was primarily the result of an increase in salaries, wages and benefits of $2.2 million, an increase in other operating expenses of $4.4 million and an increase of $1.6 million in the provision for doubtful accounts, offset by a decrease in net interest expense of $4.2 million.<
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SOURCE LifeCare Holdings, Inc.
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