Question-and-Answer Session
Operator
(Operator instructions) We'll go first to Newton Juhng with BB&T Capital Markets.
Newton Juhng – BB&T Capital Markets
Thank you very much. I was wondering on the med mal costs, if you can give us some idea how that's going to trend over the back half of the year here?
Rich Lechleiter
Good morning, Newton.
Newton Juhng – BB&T Capital Markets
Good morning.
Rich Lechleiter
I think, you know, first of all, in the second quarter review, as I've spoken to some of you last night, we saw a quarter in which our claims in flow was perhaps the lowest level that I've seen since I've been CFO here at Kindred for the last six years. So it was a really, really strong metric around frequency that clearly move the numbers, if you will, in terms of med mal. So that's definitely moving in the right direction. We booked $11 million this quarter. I think, on a $50 million run rate, you're expect around that same level of costs in the next two quarters.
Newton Juhng – BB&T Capital Markets
Okay. Excellent. I appreciate that. You know, Paul, I was wondering, you've been spending a lot of time inside the Beltway and the delay in the refinement [ph] obviously a positive effect from those efforts. Do you feel that the industry is now getting its appropriate due attention, or is there still ways to go in terms of effectively getting the message across to the decision makers?
Paul Diaz
Last time I spent in my buildings, but we're obviously engaged and we've got a great team in Bill Altman and Ray Zapina [ph] that they're active in Washington, and our Chairman is pretty active as well. Look, I would say that the Administration acted prudently. I mean, you know, I think they acknowledge that there were data that they had not taken into account or that we're still looking at, and we put forth information to show the savings that we were getting or creating by moving patients more quickly out of inpatient rehab facilities or eliminating patient rehab facility stays or out short-term acute care hospitals. And those savings should matter as one looks at the RUG system, rather than just looking at the forecasting era in isolation.
I do think that the industry has made progress on making the case for this value proposition, but we have a lot more work to do. And, you know, my partners and I in ASA and the alliance, you know, we're going to continue to work on that in front of a new administration and in front of the new Congress. But we've got a lot of work to do. I do think, though, that on the margins we're making progress in how we're delivering that story of the value that we're creating for seniors in our nursing facilities.
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