Question-and-Answer Session
Operator
(Operator Instructions)
Our first question will come from the line of Darren Lehrich with Deutsche Bank, please proceed.
Darren Lehrich - Deutsche Bank Securities
I have a couple of questions here. I just wanted to key into the write-off of the CO1 cost, which I know you broke out here, can you remind us where the other million dollar charge that was taken, where that was and when it was, I think in the annual numbers, we see another million dollars and I do not recall that being broken up before.
Bob Lefton
Yes, we took the $3 million obviously in the fourth quarter. In the third quarter of this year, we took $800,000.00 and then I believe it was the second quarter we took $200,000.00.
Darren Lehrich - Deutsche Bank Securities
That was part of the continuing operations so we would have seen that in the original releases. I am just trying to go back to the original releases to see where I would have seen that.
Bob Lefton
Yes, if you go back, the $200,000.00 in the second quarter, I am not sure we broke that out in the press release, but in the third quarter, we did break it out. The $800,000.00 related to Broward County in Florida, which we talked about in the call and then obviously the $3 million this quarter.
Darren Lehrich - Deutsche Bank Securities
As far as the operations go, you have done a better job managing cap. It was up a bit sequentially and I guess the question is just given the inpatient admissions activity, can you shed some light on why it would have been up sequentially with inpatient admissions contributing to your overall admissions?
Bob Lefton
Part of it is because of the way it has capped in and the way we do the accounting for it. The fourth quarter which has historically been the quarter we have the biggest increase or the largest amount of cap, remember that is Medicare’s first quarter under the cap year? In every other quarter through the year, remember the way we book it is we do a cap calculation at the close of every month or quarter and book to where that cap is, progress can come in and out of that so in every other quarter, you can actually recover amounts that were booked in the previous quarter. You do not have that ability in the first quarter because it is the first quarter of the year and there is no carry forward from year-over-year.
- To read the full transcript on Seeking Alpha, click here »
