Question-and-Answer Session
Operator
Thank you Mr. Turner (Operator Instructions) We will take our first question from Ryan Daniels with William Blair. Please go ahead.
Christina Bradshaw – William Blair & Company
Good morning. It’s Christina Bradshaw for Ryan this morning. To start-off, where is the weakness that you’re seeing in the volume right now given the environment. Is it under acute-RTC side or is it more payer focused?
Joey Jacobs
It’s general across the Board. Our payer mix has stayed relatively stable over the years. It is just a general softening that occurred in October, and that was I guess when banks started to fail maybe Lehman Brothers had closed or whatever and we just the uneasiness, the lay-offs in the market, just caused a softening in the census, starting in October. Across the Board we do have several facilities that -- this is not impacted and they are growing rapidly, so but there is a general softness across the country.
Christina Bradshaw – William Blair & Company
That's helpful color. Thank you. Regarding the situation in Riveredge, can you estimate what your costs are going to be for the facility in the first quarter of 09 or I don’t know if you can provide an estimate? And then, I guess, is there a point where you get to just think about converting those beds away from DCF to maybe private pay?
Joey Jacobs
The Riveredge and the softening of the census was taking -- we took both of those things into consideration when we lowered the revenue -- same-store revenue goals to the mid-single digits. So it’s baked in those expectations there. We have starting in November began a program of diversifying the payer mix there, and so that is a part of our strategy and hopefully a successful strategy during 2009.
Christina Bradshaw – William Blair & Company
Okay, great. And then, a question on the revolver. Is there a LIBOR floor on, for the extension of the revolver or any new covenants that may be we should be aware of?
Brent Turner
There are neither. No LIBOR floor and no change in our covenants.
Christina Bradshaw – William Blair & Company
Okay. And then, I have one final question. On the M&A front, probably a bit of conundrum as there are fewer bidders and higher interest costs, but the facilities themselves are doing well and maybe, not taking lower multiples. Do you have any color on those?
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