Question-and-Answer Session
Operator
(Operator Instructions)
Our first question comes from Larry Solow with CJS Securities.
Larry Solow - CJS Securities
Could you maybe discuss a little bit more, it seems like your efficiency rates likely improved based on the revenue rate per patient. Can you maybe discuss the units per visit, and the daily visits per therapist, how those are trending?
Chris Reading
Units per visit have continued to trend up modestly, not significantly, but modestly. We've also gotten traction with some contract renegotiations in a number of areas. At STAR the net rate per visit has gone up from about $88 up into the low to mid-90s since we did that acquisition. A lot of that had to do with rate negotiation coupled with units per visit change. Glenn, on the productivity side, you want to cover that?
Glenn McDowell
If you look at Q2 of this year, we came in at almost 11.4 visits per clinical FTE, compared to Q2 of 2008, when we were at 11.04. So we've had a nice increase in visit per FTEs.
Larry Solow - CJS Securities
On the rising revenue per patient, do you think, albeit at a slower pace, but do you still see more room for growth there?
Chris Reading
I don't know that I want to predict. I think that June, I will say for the quarter, was a very, very good month. I don't know that it will be dramatic, but I think we've got a little room. In terms of what things look like next year, I can't say yet.
Larry Solow - CJS Securities
I mean, said another way, do you think the increase is sustainable, or is it possible that it is a little bit of an aberration or it could even turn back modestly?
Chris Reading
I would look for it to be stable through the year.
Larry McAfee
It should be sustainable. The only wild card would be, if there is a change in Medicare pricing.
Larry Solow - CJS Securities
Which, obviously, wouldn't occur. Any potential change wouldn't be till 2010, right?
Larry McAfee
Correct.
Larry Solow - CJS Securities
The industry is scheduled to be on the physician fee schedule, I guess, a deduction in 2010?
Chris Reading
There's a statutory reduction on the books. There's been a lot of discussion about whether that's going to happen or not or to what extent, but that's correct.
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