Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ryan Daniels - William Blair.
Ryan Daniels - William Blair
Can you give us the revenue by procedure type during the quarter?
Claire M. Gulmi
Our revenue was 67% GI, 20% ophthalmology and 13% multi.
Ryan Daniels - William Blair
Claire, you mentioned a few times the impact of Easter coming in the quarter, which I understand. But given that it was a leap year, there was an extra day during the quarter. So are you looking at that just on weekend days versus weekdays, so there have been more Sundays in periods you are not open to give you one less treatment day?
Claire M. Gulmi
We look at weekdays that are open, Monday through Friday and there was one less day even though the leap year just the way the days fell of the week.
Ryan Daniels - William Blair
Given that this is the first quarter with the new Medicare reimbursement system being rolled in, is that in the marketplace? Maybe if we look over the last month or so changed either your outlook or any of your partners’ outlook from the development side?
Maybe there is less uncertainties, so doctors are more willing to develop on the M&A side where prices have come down? Or people are more willing to sell given some of the pressures? Have you seen any of that thus far?
Christopher A. Holden
Because of the pricing?
Ryan Daniels - William Blair
Yes, because of the price reductions in the Medicare. So if you look at maybe the GI centers. Are you seeing them facing a little more pressure than maybe they had budgeted and so they are seeking out M&A alternatives and a corporate partner more actively than they had over the past year, anything of that nature?
Christopher A. Holden
I think that’s been an issue, but I think the bigger issues are the future of the system at large given a possible change in administration in DC and then actually probably one of the single most concerning issues is changes to the tax rate.
Ryan Daniels - William Blair
The capital gain.
Christopher A. Holden
And what that might do to them in the long term. So, I think those two issues probably weighed more heavily than the price cuts. Now the price cuts have opened the door for us to have more attention at the partnership level with our physician partners to understand ways to offset. The decline they have been a lot more willing to sit at the table and look at ways to be more cost effective.
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