Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question is from the line of Whit Mayo with Stephens, Inc.
Whit Mayo - Stephens, Inc.
Hey good morning guys.
Ed French
Hi Whit.
Whit Mayo - Stephens, Inc.
Just on the volumes again, we have been seeing this trend for several quarters now. It feels like almost a year now of the shift from inpatient to outpatient. Can you talk a little bit more about the payer behavior behind this and what is driving it?
Ed French
Whit, I think probably you saw the-- going back a year and a half, two years ago, the genesis of it in one of our markets where the professional review organization for Medicare patients was trying to identify some patients that could be served on outpatient basis based on comorbidity and DRG specific contribution. And so that is probably when we started seeing some of the movement. And it has been in various locations since then.
Whit Mayo - Stephens, Inc.
Okay. I mean should we see this to be a little bit more pronounced over the coming quarters just as you re-contract with some payers and secure additional contracts? Just kind of help us understand the moving pieces there?
Ed French
Yes, realistically I think we ought to expect it to continue to-- not all patients will be able to be served on an outpatient basis, but I think there are some. And there is no reason to think that would not continue.
Whit Mayo - Stephens, Inc.
Okay, okay, that is helpful. And just secondly, it has been reported that Catholic Healthcare West and Cigna are in some disputes over some contracting terms in Phoenix. Just, have you been able to pick up any of their heart business down there? I know it is early and just Ed, I know you are familiar with this situation, as much as anyone, so just any color on kind of, how you look at the market dynamics there?
Ed French
Good insights Whit, because yes we are-- visible to end market with a nice presence obviously in Arizona Heart Hospital. And from the get go, we have been very attuned to that. And you can be sure that our folks who are on the ground offering support to physicians to have a place to practice medicine if they need to admit Cigna patients somewhere. And also reaching out to CHW if they need a partner and helping in some way or another with marketing their services and being able to support their doctors.
- To read the full transcript on Seeking Alpha, click here »
