Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Whit Mayo with Robert W. Baird.
Whit Mayo – Robert W. Baird
Thanks. Just wanted to go back to the strategic initiatives for a second. I guess particularly with regards to the per-visit pay conversions, I think if I heard you correct, you’re now at 80% and that’s up 70% sequentially -- from 70% sequentially, pretty big move. And I guess I understand the productivity improvements around that have been pretty dramatic. What metric do you think illustrates those gains in those? Is it the episodic growth, the growth in visits per episode? Just what do you think is having the biggest impact on the [ph] margins?
Tony Strange
Hey, Whit, this is Tony. I think your insight is correct. When I think about that initiative, it does affect cost and that we get out of the business of having to manage the productivity of clinicians. They really begin to take that on themselves that really rewards clinicians for their productivity. The other place that you will see it though is in growth in revenue, because with the enhanced productivity, it also creates capacity. And I mentioned on the last call that I wouldn’t expect this to average yet to a 100% conversion because we’re always going to have some clinicians or certain markets where paid clinicians on a salary basis may make more sense. But that number could get up to 85% or so, but it’s probably not going to be a 100%.
Whit Mayo – Robert W. Baird
That 80% number, if I’m looking at the number of (inaudible) that you have on per-visit, is that pretty comparable?
Tony Strange
It’s pretty comparable across disciplines.
Whit Mayo – Robert W. Baird
Okay. And I guess just kind of thinking (inaudible), you’ve always seen historically a little bit of lumpiness. So presumably these gains should probably even that out a little bit as we just think about the back half of the year. Am I thinking about that right?
Tony Strange
Well, I’m not sure your definition of (inaudible). I’m going to have to get what you mean on that. I think if you are referring to seasonality, there is some seasonality in this industry. The third quarter tends to be a little wider than the first and fourth quarter. Second, a little bit, but third quarter is kind of where you see that dip. And I think we’ve taken that into account when you look at our 2009 projections that John talked about, I think we have that factored in.
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