Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Rob Hawkins from Stifel Nicolaus. Please state your question.
Robert Hawkins - Stifel Nicolaus
Good morning. Nice quarter, guys. Looks like everything is kind of stabilizing and turning up. Can we go into one thing that I thought was -- that I would like to understand a little better is the contractual reimbursement issue, the $1.4 million number at the hospital.
John Short
Sure. Jay?
Jay Shreiner
Yes, good morning. What we're doing within our freestanding hospitals is standardizing and strengthening our processes surrounding determining of contractual allowances. And we believe that this will reduce the risks of variability of calculating these estimates.
We have a new lead in that division. Kurt Schultz joined us as Vice President of Finance as of about two months ago. He has career prior to coming here was with kindred and brings tremendous knowledge and expertise in therapy so we made and are making significant progress in this area.
Robert Hawkins - Stifel Nicolaus
Well, I mean, is it a one-time item, the $1.4 million in the one hospital or is this something that -- first of all, was it an LTACH or rehab? And then, is this something that, I think his name is Kurt, is going to have to roll through, each of the hospitals and you might find a few every quarter? How is this going to kind of play out?
Jay Shreiner
Now, we've gone through all hospitals in the third quarter, the quarter we just reported so the net of everything that, using the more standardized processes came out into $1.4 million, which we just reported. That adjustment was in an LTACH but I mean, we've looked at all of our hospitals and feel that, you know, that -- the changes that we've made have strengthened our ability to estimate these closer to what the actual cash will be.
Robert Hawkins - Stifel Nicolaus
Okay. And then one area I'm kind of curious about are the GPO contracts, you've had VHA for a while, I mean how should we b thinking about what this impact might mean for you going forward with premiere, and re-signing VHA?
John Short
Rob, let me have Peter Doerner, the point guy on that, for both relationships, address that issue. Peter?
Peter Doerner
Rob, good morning. You're correct. We've had the relationship with VHA for nine years. We've just recently renewed it in the quarter as we reported. That's provided very good growth within the hospitals they represent.
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