Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Newton Juhng - BB&T Capital Markets.
K. Newton Juhng - BB&T Capital Markets
I was a little curious about one comment that you made here on the homecare business. You described it is soft; can you give us a little more detail as to what’s going on over on that side of the business?
Ralph G. Gronefeld
It’s really driven by three things, one internal, the other two a little external. The three things are, one, we’re still putting in our systems and fully integrating all of our home care operations, and as we do that, we’re training people and we’re getting people on board, and that takes the eye off the ball from a gross standpoint, and so we continue to do that and move that throughout the country as we put our home care business on our systems.
The other two issues are that we have seen a little bit of softness because it is discretionary income, the economy is becoming tight, and from a private pay standpoint, we’re seeing a little bit there, and then the third factor is the prices of gas and the ability for our staff to be willing to and able to go from stop to stop, and us working through ways to compensate them, increased mileage, mileage rates, and those types of things; so, nothing that gives me any cause or concern on a go-forward basis long term. I think all three of these issues we will manage through and ramp up our homecare organic growth.
It’s more of a timing issue and more of us have to deal with some things that are currently occurring that we just have to find ways to manage and I think that we will. Demographics are still very strong for this population. The need is great, and I think that we will continue to see opportunity here, and the opportunities currently exist in our pipeline as well. Our pipeline is very robust with homecare acquisitions at this time.
Newton Juhng - BB&T Capital Markets
Ralph, in terms of looking at the way you’re terming it, I’m just curious; it sounds like your outlook hasn’t really changed, but in terms of organic growth, can you maintain it at this point or do you think that it’s something that we need to re-jig here a little bit in terms of expectations going forward?
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