Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Gary Lieberman of Wells Fargo Securities, Llc.
Gary Lieberman - Wells Fargo Securities, Llc
I was hoping you could talk about your contract mix. Are you seeing fewer or more out of network contracts? Are you trying to go to more of a bundled methodology with some of the commercial players? I would like to know sort of where you are there.
Steve Everett
Okay there are two pieces to that. First of all as it relates to if we are going more toward contracting as opposed to out of network, I would say that our philosophy is certainly unchanged and I think our results bear that out. We continue to take a look on a month-by-month and quarter-by-quarter basis on all of our out of network patients to see whether or not it makes economic sense for us to contemplate going into contract negotiations with these different payers. I don’t know that we’ve had any changes dramatically.
Andrew Jeanneret
Gary, there are no large shifts or even small shifts to report either contracting or non-contracting.
Steve Everett
So, Gary we remain where we were which was we are looking at it more intently than we ever have, and that has been ongoing for the past nine months, to see whether or not it makes more sense. We are more in network than we have been in the past, but there are no significant shifts from quarter-over-quarter certainly.
As to going to more of a bundled approach, with the peers that we have and where we are in network with we have somewhere we have bundled product already. We are certainly not pushing that. It is really starting from there end. We have a few, we have several actually that are all in, but no change. We are not pushing that, having anything to do with it, especially as it relates to preparing for a bundle through CMS in ’11.
Gary Lieberman - Wells Fargo Securities, Llc
Okay and can you just remind us what percent of the commercial contracts are in network versus out of network?
Steve Everett
It is right about down the middle right now I believe.
Andrew Jeanneret
It varies on the commercial patients that we have, anywhere in the 40% to 60% range and it just depends, but that is the same historical mix over the last about 18 months.
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