Question-and-Answer Session
Operator
(Operator instructions) We'll go first to Eric Gommel of Stifel Nicolaus.
Eric Gommel – Stifel Nicolaus
Good afternoon. Just a couple of questions. There was a lag in the physician fix bill getting passed, and I'm curious if that had any impact on your therapy business from a therapy cap perspective, did you have to do anything with managing the therapist's time and such given that there was a short period there where the cap was actually in place?
Rick Matros
No, not at all, we assume that it was business as usual. We had a very high level of confidence that it was just going to be a timing issue, once this would be retroacted. So, we had massive amounts of communication both to our Inpatient-affiliated business and to the non-affiliated costumers that they were getting full service and we didn't want any gaps whatsoever.
Eric Gommel – Stifel Nicolaus
And the final rule from – the SNF final rule that came out last week was I think a surprise, in the sense that they ended up rolling back this downward revision in the RUGS, and I'm curious what you think the impact might be on maybe the potential that they do something in 2010 to RUGS, or does that increase any risk that there could be changes further out for the SNFs?
Rick Matros
I can appreciate you guys always looking to the downside. There's no connection whatsoever. I think we were all surprised that we got a complete rollback. As you know, I've been saying all along that we would get at least a partial rollback. We had unbelievable support from a lot of our friends in the Senate and the House in terms of their discussions with the White House in that regard. But we're going to have an election in November and this is going to be a whole new ballgame next year. The guys that are there today aren't going to be the guys that are there next year. What happened this time has no – there is no overhang to [ph] what happened this time into whatever the annual battle is next year. I mean, every year we have a battle over something.
Eric Gommel – Stifel Nicolaus
Okay, great. Thanks.
Operator
We'll go to next to Rob Mains of Morgan Keegan.
Rob Mains – Morgan Keegan
Yes. Good morning. Interesting comment on your part about the second quarter margins and Inpatient could have been better. So, I think they were kinda record highs, weren't they?
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