Question-and-Answer Session
Operator
(Operator instructions) The first question comes from Derrick Dagnan from Avondale Partners. Please go ahead.
Derrick Dagnan – Avondale Partners
Good morning and congratulations on a strong quarter. I want to ask a quick question on the Contract Therapy business. If you could discuss the contract losses that you had in the quarter and maybe any timing impact there, did you lose those contracts mainly at the end of quarter or was it spread evenly over the course of the first quarter?
John Short
It was spread pretty evenly over the course of the quarter.
Derrick Dagnan – Avondale Partners
Okay. And if you look at the same-store growth figure that you have discussed as 7% or so, is that split between kind of patient volumes and pricing growth, or can you give us a breakdown there?
John Short
It was virtually all patient volume.
Derrick Dagnan – Avondale Partners
Okay. And was there anything temporary in the patient volume, was there any event in the quarter that would cause the patient volumes growth to be temporary? I know we have a strong flu season in the hospital business, I don't necessarily think that has a big impact on you, but I was wondering if there was anything else that you guys are pointing to?
John Short
No. The strong same-store growth was a result primarily of increased therapist efficiency which permitted us to treat more patients.
Derrick Dagnan – Avondale Partners
Okay. And I guess one other question and I'll jump back in the queue. On the RAC program as that starts ramping up again, do you feel like you are better prepared this time around? Do you have kind of new procedures in place that should help you out when you deal with claim denials and when you go back to challenge those claims?
John Short
Yes, we've learned a lot over the demonstration period about how to efficiently and effectively deal with the RAC audit issues, so we've automated a lot of that process. We've set up firm criteria in terms of which claims we'll appeal and which claims won't be appealed. We've had a very high success rate over the last 18 months to two years while we've been doing that. So we're fully prepared for the national rollout over the next two and a half years.
Derrick Dagnan – Avondale Partners
Okay. Thank you very much. I'll hop back in the queue.
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