Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Tom Gallucci of Merrill Lynch.
Tom Gallucci – Merrill Lynch
Good morning. Thank you, Steve. You mentioned the strength in Vegas on the volume side and the count, I suspect, was down with the new competition earlier or late last year. Can you talk about, sort of, how the volume was spread throughout the rest of the portfolio? Was it fairly even or were there other extremes, either up or down?
Steve G. Filton
Sure, Tom. Obviously, you always have some ups and downs, but we saw strength. I kind of alluded to profitability in my opening remarks. But we saw strength in admissions in the Washington, D.C. at GW. We saw it in Florida in the Bradenton market where, as we disclosed, for the past three or four quarters, I think we have benefitted from a major construction renovation project that we completed at the end of the second quarter last year. So, I think we saw that strength again throughout the portfolio.
Tom Gallucci – Merrill Lynch
Okay and then on the out-patient side, can you discuss the trends you are seeing there?
Steve G. Filton
Sure. In the first quarter we talked about the fact that surgery volumes were actually a little bit negative in the first quarter. In the second quarter, they turned sort of slightly positive, not a huge change, but we did see a little bit of a rebound in our surgical procedures, particularly out-patient surgery. And we have seen relatively busy ER visits throughout the year; busier in the first quarter, just because of the flu impact, but still busy ER in the second quarter as well.
Tom Gallucci – Merrill Lynch
Okay, final question, just wondering how you are sort of viewing the Medicaid landscape at this point, given the state of the economy and state budgets. Thank you.
Steve G. Filton
Sure, well we have seen--and I think we have talked in previous calls--about Medicaid, announced Medicaid reductions in Florida, which took effect on July 1. California’s was supposed to take effect on July and there is some legal wrangling that has sort of enjoined that for the moment, but may well be retroactive to July 1. Both those changes are worth, probably, a couple of million dollars of negative impact, each, to us in those states.
Since, I think, the second quarter call, the state of Nevada has passed Medicaid reductions which will take effect on September 1. We do not have a huge exposure to Medicaid in Las Vegas or Reno and again, probably worth a couple of million dollars in negative impact to us.
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