Question-and-Answer Session
Operator
(Operator Instructions) Josh Raskin of Lehman Brothers, you may ask your question.
Josh Raskin - Lehman Brothers
Hi. Thanks. Good morning. Two quick questions. One, could you give an update, I apologize if I missed it early on, I jumped on when you were talking about Maricopa. Sounds like higher membership. Could you give an update on the expected revenue run rate on an annual basis there?
Steven Schulman
Yes, we shared it. Josh said earlier $580 million. Higher than we originally expected, but the membership is up.
Josh Raskin - Lehman Brothers
Okay. And on the margin side, I know you guys are capped at 4% to 5%. That's post, that's after taxes. Would you expect to be sort of this that run rate for the full fiscal year of '08 at this point? It sounds like you know you feel like you are getting better margins at this point already.
Steven Schulman
Let me not comment on that. We have said there is a range. We knew what the cap was. We expected the consider to mature over time and we are doing better than we expected early on in terms of our managed care impact versus the previous incumbent.
But it is too early for us to definitively say where we are going to be we have had a month into the contract.
Josh Raskin - Lehman Brothers
Yes, that's fair. And then let me play I guess, devil's advocate. You spoke of the impact of the credit crunch on your throughout processes around the repurchase and certainly understand the ability of others in terms of raising debt et cetera two acquisitions will help you competitively in the M&A front.
But if you look back and you have done two significant deals one of them has been very, very successful, the radiology side, but ICORE certainly lacking the previous expectations. I'm curious; do you take into effect, the inherent risk in acquisitions?
Has the ICORE business sort changed your mind frame in terms of the relative attractiveness of other capital deployment areas?
Steven Schulman
Well, it's a fair question. Certainly let me just back up and say what we are seeing in the marketplace, not only the value of our cash is higher, the costs of the debt is higher. But we are seeing a return to normal patterns, because the cost of capital to financial buyers has increase in their ability to leverage the company as much as they could with no covenants has decreased.
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