Question-and-Answer Session
Operator
Thank you (Operators instructions). Our first question will come from the line of Shelley Gnall with Goldman Sachs. Please proceed
Shelley Gnall – Goldman Sachs
Hi. Thanks for taking my questions. I guess, the first one on EmCare, the same store growth was 7% for the volumes for EmCare, can you remind us, what was it for the prior two quarters?
Randy Owen
In the second quarter, Shelley, it was about 7% as well. Q1, I don't know off the top of my head, but I think it was lower single digits. Historically, as you recall, over the long-term, we've averaged anywhere from 2% to 4% same-store volume growth.
Shelly Gnall –Goldman Sachs
Yes. And it's meaningfully higher this year because, I guess, what are the –
Randy Owen
Well, we do believe, as in the second quarter, there is some impact from the H1N1 outbreak. We've seen solid emergency room volumes. Although really, when you look at the growth at EmCare year-over-year, the majority of our growth really is from volumes from net new contracts.
Shelley Gnall – Goldman Sachs
Yes. Just the other, I mean, what other drivers might contribute to the same site volume trend that's significantly above the low single digit historical trend?
Randy Owen
Shelly, there are some seasonal changes that you typically see. But nothing else specific that I could refer you to this quarter.
Shelley Gnall – Goldman Sachs
Okay. And a question on subsidies for your contracts. Just wondering, I guess, anecdotally, we're hearing from some hospital systems that they're being, if anything, maybe even more conservative with their operating expenses and their uses of cash now. I'm just wondering, anecdotally, what are you hearing from the hospitals that are paying subsidies for the EmCare contracts? Is there any more pushback? Are you having to consider more contract exits?
Bill Sanger
Shelly, this is Bill. We certainly have seen more interest in renegotiating of subsidies. But we have not seen additional exiting of contracts as a result thereof.
Shelley Gnall – Goldman Sachs
What about for some of the new contracts that are entered into for EmCare? Are hospitals less likely to offer a subsidy now than they were maybe a year ago?
Bill Sanger
We really don't see changes as relates to single subsidies. We are seeing the opportunity to discuss cross-subsidies when there's more than one services offered to a facility.
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