Dialysis Corporation of America Q3 2009 Earnings Call Transcript

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2009-11-07 00:43:08.0

Tags: Billing, Deutsche Bank AG, Call Transcript, Earnings, Dialysis Corporation Of America, Steve Everett HHI, Seeking Alpha, Dialysis Corporation of America

Question-and-Answer Session

Operator

(Operator instructions) Our first question is from the line of Pito Chickering of Deutsche Bank.

Pito Chickering - Deutsche Bank

Hi, good morning guys. Pito in for Darren.

Steve Everett

Hi, Pito.

Andrew Jeanneret

Hi, Pito.

Pito Chickering - Deutsche Bank

Couple of quick questions here. The first one you talked about your IP system, can you give some examples of how that could provide increases going forward?

Steve Everett

Say it again, examples of what?

Pito Chickering - Deutsche Bank

So, with the new IP which is in place, I guess the question is from a productivity standpoint, you know sort of the (inaudible) -- the bottom line for your company.

Andrew Jeanneret

(inaudible).

Steve Everett

HHI is a clinical information system that we have that we are putting in place. And it has got a variety of things that will be happening on the billing front, where today we have been with the facilities that haven’t gone over yet, it is fairly manual. And on the clinical side, it has got a ton of information. Essentially it goes on to becoming an EMR number one, and number two, is in preparation for 2011, the amount of information that we are going to have to gather, prepare and then submit to CMS in order to get paid appropriately will be and is captured 100% on the HII.

It eliminates a tremendous amount of redundancy, Pito, on gathering and disseminating that information, while it is internal or out for billing purposes. I mean that is as far as I can go as far as quantifying efficiencies on it. But at the end of the day and of course (inaudible) will be affected by, we are going to need (inaudible). But as far as, if you are asking about FTEs or those types of things, it is hard for us at this point to get our arms around exactly how many staff members are going to be able to save. But we know that obviously it is going to be very positive.

Pito Chickering - Deutsche Bank

Okay, fair enough and then corporate G&A costs were down nicely sequentially. I guess, what made that reduction and is it at a good level, going forward?

Andrew Jeanneret

Peter, it is Andrew. I would say if you are looking for the next couple of quarters, we're probably going to be able to hire than where we ended in the third quarter on a quarterly run rate, but not by much.

 

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