Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Ryan Daniels - William Blair.
Ryan Daniels - William Blair & Company
Chris you went through the new center outlook at the start of the call. I want to make sure I got everything right, I know you’ve done four acquisitions year-to-date, is it you have two multi-specialty acquisitions under LOI, two GI and then one multi-specialty that you anticipate opening for a total of five more at this point? Is that the nine that you’re coming up with, do I have that right?
The four done year-to-date and I think you said two multi-specialty under LOI which are both acquisitions. Two GI under LOI and one multi under development that’s going to open. Do you have that right?
Claire Gulmi
They do not open into 2009. The multi-development will not open this year.
Ryan Daniels – William Blair & Company
But there is one other de novo that’s going to open?
Christopher Holden
That’s correct.
Ryan Daniels – William Blair & Company
So you need three more back half of the year outside of that to get a little low end, is your comment.
Christopher Holden
Correct
Ryan Daniels – William Blair & Company
Can you talk a little bit more about the dispositions, I think this probably the first time we’ve seen the centers under operation go down in a few year’s and I’m just curious if you are kind of more actively looking at the portfolio and identifying those assets that maybe aren’t generating revenue and then a derivative question might be, what’s a typical processor. It sounds like those have been break-even for a while. Those assets that you may be given a year or two to develop, their business plans and grow and if not there comes a point where you looked at asbestos?
Christopher Holden
We always look at the portfolio and evaluate it. In this case it wasn’t a matter of an intensified process, it was more of just an opportunistic outcome on how it happened and the second part of your question is correct. I mean we like to give ourselves a chance to rehabilitate before over time it would go into the extreme of closing the center.
Ryan Daniels – William Blair & Company
I know you mentioned up front that you’ve kind of done some initial analysis on what the environment’s during in regards to your surgical volume and I don’t know if it’s too early to say, but is there anyway to share more data i.e., is GI a little less susceptible than orthopedic at some of the multi specialty or are you seeing some weakness in certain markets that you guys have been able to call it in the housing market or is there really just not an update or too early to tell if any, if that’s the case.
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