Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Whit Mayo of Stephens Inc.
Whit Mayo - Stephens Inc.
Walter, you mentioned in your prepared remarks about an $800,000 expense which looks like about $0.03 from relocation expenses. Can you expand a little more on that and does that include any write-offs with respect to any operating leases?
Walter Hosp
Yes, it does. Again that $800,000 is primarily related to office relocations, the biggest one of which I outlined is in Dallas, Texas. We did leave some old space that did require write-off on that and that's why we think this is non-reoccurring. The majority of that $800,000 you'll find in our occupancy line for the fourth quarter.
Whit Mayo - Stephens Inc.
Okay. Any idea of what kind of a normal, I am just trying to isolate kind of what that the lease would have been without writing it off. Any idea of what kind of a normal number would have been, obviously significantly lower than the $800,000?
Walter Hosp
No, the $800,000 are one-time charges, but the ongoing occupancy expense will be higher than what it was trending without the $800,000. So we went into larger and slightly more expensive space there, but one shouldn't conclude that the higher expenses in Q4 and occupancy are going to continue at those levels.
Whit Mayo - Stephens Inc.
Okay. That's helpful. And this obviously was the very first quarter, as you guys mentioned in your remarks that we've seen the combined HMS and BSPA company and I understand the projects are very intertwined at this point in time, a very difficult to isolate kind of what's what. But, I think in 2006 you guys were still making a little bit of money on the dual eligibles that you obviously don't see now in your pool of claims. So in your press release you indicated that on an apples-to-apples basis you felt that organic growth was around 20%. Can you help us understand a little bit what's underpinning that calculation?
Bob Holster
Whit, we grew 24% Q4-to-Q4, 21% excluding Permedion as Walter indicated. Our MCO business was of course much stronger. If you exclude our MCO businesses, everything else grew at about an 8% rate in the fourth quarter, but that was a function of our comparison to a tough Q4 '06, that did include a couple million dollars of pharmacy revenue associated with the dual eligibles.
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