Sierra Health Services Q3 2007 Earnings Call Transcript

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2007-11-06 13:04:38.0

Tags: Sierra Health Services Inc.

Question-and-Answer Session

Operator

Thank you. At this time, we're ready to begin the question-and-answer session. (Operator Instructions) And one moment for our first question.

We do have a question from Peter Costa. You may ask your question. Please state your company name.

Peter Costa - FTN Midwest Securities

FTN Midwest Securities. Hi, guys. Do you want to talk about the higher utilization in the bed days in Las Vegas? Did that have anything to do with switching hospitals from the HCA facilities to other facilities for your Medicare population?

Anthony Marlon

This is Tony. In so far as we are now managing a multitude of hospitals with all of our patients. It has become slightly more difficult to manage the bed days. There is no question about that. I met with some of the medical directors and running around between 10 or 11 hospitals has been certainly much more difficult.

We had a major concentration over at Sunrise, which allowed us to manage that slightly more efficiently. So, I would think that some of those days, 2% or 3% of the increase probably is related to the inefficiency of having to do multiple hospitals. But that is probably the only element that contributes to the increase. We have had some very, very sick patients with very long stays that account for the higher than average bed days.

Peter Costa - FTN Midwest Securities

Okay. And in terms of the merger with United, anything, at this point, you can talk about regarding timing and expectations at this point? I mean, you said by the end of the fourth quarter, but, is that November or December? I mean: you must be pretty close now with the second request being done.

Anthony Marlon

Every time I make a comment about it, I'm proven wrong. I would tell you that we certainly expect that within the next 45 days to have a clearer picture of what's happening, and hope certainly to have an announcement before the end of the year.

Peter Costa - FTN Midwest Securities

What remains as the issues? Can you talk about that?

Anthony Marlon

Everybody is shaking their heads: ?We can?. Obviously, there are obvious issues. The Medicare is the one, and that seems to be the major concern, and we are dealing with it as best we can.

Peter Costa - FTN Midwest Securities

Okay. Thank you very much.

Operator

Thank you. (Operator Instructions)

 

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