Medical Biller/Collector Orion HealthCorp Shrinks Loss in Third Quarter

Orion HealthCorp, Inc. today announced its financial results for the third quarter and nine months ended September 30, 2006.

For the three months ended September 30, 2006, net operating revenues were $7.5 million compared with $7.3 million for the same period in the prior year. Net loss was $488,000, or $0.04 per basic share, for the third quarter of 2006 compared with a net loss of $6.1 million, or $0.53 per basic share, for the prior year period. The net loss for the three month period ended September 30, 2005, includes a loss from operations of discontinued businesses of $4.2 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $47,000 for the third quarter of 2006 as compared to an EBITDA loss of $1.1 million for the three months ended September 30, 2005. (A reconciliation of EBITDA to net income is provided on the attached un-audited consolidated condensed statements of operations.)

Terrence L. Bauer, chief executive officer of Orion HealthCorp, said, ?We believe that these results reflect the continued improvement in the financial performance of our company. We remain focused on building our core business, providing billing and collection services and practice management solutions to physicians, both through organic growth and strategic acquisition. Demand for revenue cycle management services continues to grow as there is escalating pressure on physicians to operate more efficiently and outsource the management of billing and collections. Furthermore, the quantity and quality of acquisition opportunities in our pipeline continue to improve as market consolidation activity remains robust.?