RE: RE: RE: Yield-Driven, Not Value-Drivenitsnotme1, I suggest you read the company's financial filings and do some math before posting such negative inuendo about "in-network" contracts. It should be obvious that the major impairment to NHC over the past year was a complete loss of business from the major insurer at The Palladium Houston, not the in-network contract at The Kirby Partnership.
Here's some analysis from the 3Q MD&A that discusses the impact on revenues from the Kirby Partnerships "in network" contract:
Net patient service revenues for the three months ended September 30, 2009 totalled $6.8 million, a decrease of $2.5 million or 26.9%, compared to $9.4 million for the same period in 2008. The decline was primarily due to a 29.7% decrease in case volume accompanied by an 8.9% decrease in the overall reimbursement rate for the three month ended September 30, 2009 versus the same period in 2008. The overall case volume decline was a result of a 9.3% increase from the Kirby Partnership and a 60.9% decrease from the Palladium Partnership. The 2008 case volume were negatively affected by hurricane Ike. The decrease in the reimbursement rate is directly associated with the volume decrease in cases with higher reimbursement rates at the Palladium Partnership as a result of its collection dispute with one of its major payors, which was settled subsequent to September 30, 2009 , and to a lessor extent with another payor. In addition, the signing of an in-network contract at the Kirby Partnership on January 1, 2009 also contributed to the decline of the overall reimbursement rate. The decrease in net patient service revenue during the quarter was partially offset by $1.3 million related to collections during the quarter of 2009 revenues that were previously not recognized.
I believe it was said during last quarter's conference call that one could expect the "in network contract" at The Palladium Houston to result in simular margins to those at Kirby Partnership, wich they said was about a 30% operating margin.